How to handle Telemarketing of credit card interest reduction - Cardholder Services - 954-424-6715

The call begins with an automated voice: We're calling about your credit cards and a reduction in interest rate that you are eligible for. There are no problems with your cards, but it is urgent that you contact us right away. Press one to speak to a representative.

Their message is misleading, at least. It unfairly causes an average person to believe that it is the credit card company who is calling.

I specialize in Ideas about how to deal with telemarketers. It's sometimes fun to see how they work, and see if I can confuse their agents.

I decided to press 1 and see how long I could keep them online. The last one got offline quickly when I said I didn't have any credit card debt. Here's how the phone call today went:

• This is Carrisa with Cardholder Services - Lower rate helps pay off the cards quicker.
• Carrisa: Do you have more than $5000 in credit card debt?
  • Me: Yes
• Telemarketer: do you pay more than 12% interest?
  • Me: Yes. In fact some of them I send them my money, and then they charge me money to loan it back to me. Is that legal?
• Nosy telemarketer with no business to know this: Do you make the minimum payments?
  • Make the minimum plus.
• Prying telemarketer: Are you still using the cards?
  • Sure
• Telemarketer who thinks I'm stupid enough to give out private info to anyone who calls: Creditor with the highest interest rate?
  • Well, I'm not sure exactly what the rates are.
• Carissa the Clueless: Name of the creditor?
  • Creditor? You mean the guy at the bank who approved my credit?
• Carissa prompts: Like Discover
• Carissa adds: We also handle past due medical bills
  • Me: A friend of mine owes a hospital a bunch of money. Can you help him?
• Anything to get their hands on my money telemarketer: We sure can
  • Me: Do you help people in California? What number should I tell him to call?
• Telemarketer: 1-800-626-2004
  • My Thought: It probably costs them more money if you call the 1-800 number.
• Telemarketer: We work with the whole U.S.
  • Me: Wow, that's a big territory
• Telemarketer: Highest balance? - Ballpark
  • Direct Merchandising Bank - Direct Merchants - 12% or higher
  • Bank One - $5000 -
• Telemarketer: Some go as low as 0%
  • Bank of Hoven - 0%
  • Prudential - $3500
  • Me: I start complaining how they made me give them money before they'd give me a credit card.
• Goofy telemarketer: You shouldn't have given them your money to get a credit, its not based on how much money you have?
  • Me: They kept demanding more money even though the card had a zero balance.
• Telemarketer: Total payments a month, do they average $350-$400 a month?
  • Me: Oh yeah, at least.
• We can get these rates down
• We have your number as 415-xxx-xxxx
  • Me: Huh? Whose number is that? I don't know anyone with that phone number. Is that the number of the bank?
• It's the number that came up on my screen.
  • Me: No, I have a 513 number. Maybe you need to get one of those popup blockers, maybe some kind of popup is causing wrong numbers to popup on your screen. Maybe your computer has a virus?
• Telemarketer: They just erase, and then they come up with a whole different number.
  • Me: Continue discussing how terrible it is that they are having these pop-ups and how my brother in law had a bunch of viruses on his system...
• Telemarketer back on track: Direct Merchants goes as low as 6%
  • Me: Can do whatever what I want with the card?
• Them: Sure. What is your name?
  • Me: Name: Jack Huber
• Telemarketer: You qualify for the interest reduction.
  • Me: Specialist will talk to you about getting the rate lowered. Let me just recap the info you have me:

    Telemarketer thinks this is my information... Accounts: Prudential $3500 Direct - $2000 Bank One - $5000 Out of pocket $400. Some cards near their limit. Nothing is past due. Nothing in Circumstance - Added expenses.

Then the girl transfers me to the specialist.

He introduces himself as Leonard - American Debt Negotiators and describes their program in this way:

• Banks and the creditors are simply tired of losing money due to bankruptcy and charged off debt.
• They are happy to lower rates to pay everything off, they still get what is owed to them.
• This will not affect your credit score in a negative way.
• Fico - People in these restructuring programs does not hurt Fair Isaacs score because people pay things off when they get ont hese programs.

  How can they guarantee that their program won't affect your credit score? That seems like a stretch, and may be part of their misrepresentation to try and get your info, or worse yet, your money. Here are some aspects of their program that could affect your credit score: Closing your old, non-default, accounts. Old accounts are often helpful to credit score. Change in total credit line available when the accounts are closed. Reopening the accounts as "re-aged" Possible change in credit line amount when re-opened The decision to re-open is not in the hands of the "debt negotiators" These are only a few of the factors that enter into the credit score calculation. There are probably other aspects that could affect a credit score too. Would you have any recourse against these telemarketers if your credit score is changed?

• Team of attorneys. Pay them monthly.
• Sample interest rates:
  • 5.9% for direct
  • 9.9% for prudential
• Charge a $49 monthly fee
• $265 fee per month
• Pick and choose what accounts so the total is more than $5000
• Close out the accounts for 3-6 months
• After 3-6 months: Reaging processing - They will reopen them. Guaranteed to reopen.
• Total payment $265 - $49 maintenance fee for the attorneys.
• How we get paid: Very first month, the payment does not go to the creditors, they don't make payment, it goes to the telemarketer, in addition to the $49/month.
• My accounts wont be paid off in 3-6 months? They reopen the accounts as a leisure.

• Must be direct payments from checking or savings account.
  • Me: Can't just send cash each month?
    **Crucial
  • Me: I'll get a cash advance on one of my accounts so I can send 3 months of payments
• After first two months can send cash, but first two or three months must be from savings account

  This guy tries really hard to get me to give him my savings account or checking account information over the phone. There is no alternate way of paying him. This is a big danger sign!

  • Me: Can I use another credit card to make the payments to the debt negotiators?
• No.
  • Me: Can you do my power and electric bill for me?
• No that is considered secured bill. Can't do a house or a car. Can't do taxes or student loans.
• Me: Can I use my tax refund to pay these payments? Sure you can.
• Extra payments towards the lowest balance - Doesn't go to the highest interest card.
  • Me: Will I get credit card statements showing the payments are being made?
• Must send the payment into the company.
• First two months must be from a savings account.
  • Well, I'll send you cash for the first three months, and you can put it in your savings account, just make sure the attorneys get their money each month.
• Set everything up for the 16th. Doesn't mean it is for the 16th, need to make sure I get the paperwork. Money order,
  • Me: What? I can't send you cash?
• No always send a money order, don't send no cash.
  • Me: You mean I can't take cash into my bank?
• I thought you said you don't have a bank account?
  • Me: No, I got a credit card with Bank One. I always pay them in cash. So you're saying I should now only pay them with a money order?
• Sir I need your address now to send you the papers.
  • Me: OK, send all the papers to the address in my statement, and I'll get you the cash back right away.
  • CLICK!

Wasted time: 31 minutes!!

"Leonard" was really patient. But is that enough reason to give him a chance to steal your money? Not to say that Leonard is a criminal, although his techniques resemble techniques used by criminals to fleece victims out of their hard earned money, wouldn't you be patient if you were trying to make $300 for even an hour spent on the phone trying to talk some victim out of their bank account info?

Seems like a lot of promises were made that they have little or no control over. Their insistence on getting checking or savings account information should be a big red flag. Never give your personal information to random telemarketer who calls you!