An . . . Interesting Phone Call

Discussion in 'After Hours Lounge (Off Topic)' started by PatH, Feb 7, 2006.

  1. PatH

    PatH Second Unit

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    File this one under "If it seems too good to be true . . ."

    Last Thursday I got a call on my mom's line (a rare occurrence) from a lass representing something called Accelerated Finance. I had been recommended to them (she didn't say by whom [​IMG] ) because of my good credit rating and my record of prompt payment. Her outfit supposedly negotiates with all creditors and converts interest to lower fixed rates and renegotiates this every three months. She promised me this was not debt counseling, would not result in any hits against my credit rating, and would require no out-of-pocket from me. For my part I continue to make my monthly payments to my creditors and watch the interest rates go down and my savings therefrom go up. My creditors want to participate to encourage people not to default or declare bankruptcy. With nothing better to do at the time, I listened to this and asked her how her organization made money on this deal. The answer is "interest absorption", a concept about which she personally was vague, though she assured me that one of their program specialists would explain it to me. She gave me an 800 number with extension that I could call anytime with questions. When I asked again about this "interest absorption", she transfered me to one of her floor managers, a gent named Kenny.

    Throughout all this, she repeatedly wanted to know the extent of my credit card indebtedness, a figure which I was not going to provide at that time and place (Suffice it to say that I'm 57 and have had 30+ years to make a good run at making a fool of myself). Kenny continued with this so I finally chose one of the figures he offered as being close to what I owe. He immediately claimed he could save me half that amount. I agreed with that and he said all I had to do was provide him with a credit card on which I had a good balance and no black marks. I said Citibank and he rattled off an 800 number which he said was their customer service department and was the number they called during their negotiations (I didn't check this, but it's certainly publicly available info). He assured me that it would be safe to give him my credit card number because his organization did not want any data that might be used to charge anything, i. e., the 3-digit verification number on the reverse of the card. It was at this point that I thanked him and hung up the phone because, as I told him, once I gave him a 16-digit number, it would be but the work of moments for a computer program to work through the 999 combinations necessary to find a match from a 3-digit pool. As I hung up the phone, I heard him protesting that this was not so. The phone immediately rang again but I did not answer.

    I Googled Accelerated Finance but only found an ad in a sidebar that may have been them and appeared to be a mortgage company. If so, the joke's on Kenny, because I don't own the home where I live.

    Now there may be some of you out there who have experience with these folks and will tell me that I passed up a golden opportunity. So be it. But at least someone explain what the hell "interest absortion" is.
    [​IMG]

    PatH
     
  2. danDo

    danDo Agent

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    "IF" they are legitmate, they probably take all of your high interest credit card and other debts and consilidate them into a much lower fixed/variable rate loan. Included in this lower rate is a percentage rate that they absorb. Say you have 10K in cc bills at 12%-19% interest. If you have a house and good credit you can get a home equity loan, with low closing costs, to bring that interest rate down to ~6% over 15 years, which would reduce your payments and interest rates. They end up charging you 7% interest and pocket the difference between the actual loan and the 7%. I don't know why they would want a CC number unless there is a way to have a credit report run with just that CC and not the rest of the debt or black marks.

    If they are not legit, they just take the number and start buying stuff. The 3 digit number on the back is really only important over the net, if you make phone calls to charge things you are generally not asked for it.
     
  3. Eric Samonte

    Eric Samonte Screenwriter

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    Interesting indeed...and also in addition, isn't it a rule of thumb to not give out sensitive info, i.e., pant size, etc.[​IMG] , unless it was who called them?
     
  4. Hunter P

    Hunter P Screenwriter

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    If this is true then why do they think you need help on managing your debt?
     
  5. Lynda-Marie

    Lynda-Marie Supporting Actor

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    I say, good one, Pat. You may have dodged a major bullet there.
     

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