HowNottoGetBeatenUpByYourCreditCard

The good news is that the bad news was predicted to have been even worse. RBS bank in the UK has racked up losses of £24,000,000,000. (Twenty four billion pounds – approximately $35 billion). Losses like this has mean that the government will have to guarantee more toxic loans and fund the failing banks with even more of our money.

Another result of such huge holes in the accounts is that the credit card companies will act even more stringently to plug every gap in their financial dyke.

This is one of my occasional “GUEST” blogs that I hand over to another contributor. My good friend Neville Spiers, otherwise known as the Negotiator, has written this article. We first met when we were eight years old, and, as the saying goes, we’ve all passed a lot of water since then.

“How not to get beaten up by your credit card by Neville Spiers"

I heard a programme on BBC’s Radio 4 last week – not a new subject – the perennial issue of people who have offended Visa, Maestro and all the mighty Gods of credit. They have fallen behind with their payments and the slavering hounds of collection have been unleashed.

Some of the stories were extremely harrowing; elderly people suffering from terminal illnesses or recently bereaved; it made no difference. Many of them had had the good sense to phone up, explain the situation and make a revised payment plan; it made no difference.

The calls started coming four times a day, from different callers in the same debt-collection company – sometimes more than one company chasing the same debt! Each time, the caller would first put them through a process of “security questions”. Then they would ask when the debt wasgoing to be repaid. If the answer was anything but “right now”, the question would be repeated over and over again.

I listened to this and I thought, “Why are these people allowing themselves to be beaten up four times a day”. The truth is that there are very simple techniques, which can be used to prevent it.

1) Don’t answer the security questions. Tell them “I’m sorry but I don’t give out confidential information to anyone I don’t know and I don’t know you”. They may tell you that they cannot continue the conversation unless you do. Answer “O.K. thank you for calling. Have a nice day”. CLICK!

2) Insist on dealing with one caller only. When a different person calls, tell them to speak to the first one, in order to save them time. If a second company calls, tell them to battle it out with the first company, then come back and tell you who is handling the account.

3) If the same person calls you a second time on the same day, say, “I spoke to you two hours ago. Please refer to your notes. Now forgive me but I’m in a meeting.” Then ring off.

At all times remain polite but firm. Keep in your mind at all times that you don’t have to take it. If you have the confidence to take control,you won't have to.”