Are credit card companies unleashing the dogs of war? Their calls appear to be increasing in frequency.

You may have experienced that it doesn’t take long for the credit card company vultures to call you if you are late.  One blog I found called them the “collection police”.  The blogger was shocked that he got a call after being 1 day late.  Someone from the collection police called him one day after his payment due date and asked for a payment right away.  He was floored as he had never been late on a payment in his life and the last thing he expected was a call from his creditors.

I certainly have been late on my payments to these credit card companies and I have talked to India many times.  I often ask about the weather in Mumbai when I get on the phone with one of these people who speaks english with a funny british accent.  But it does seem like there has been a lessening lately in the time that credit card companies give you to pay your bill.

It used to be that these companies (in the good old days) allowed you to be 30 days late before you heard from them.  Then it seemed to advance to 2 weeks and then one week and now my clients report getting calls from credit card companies when they are one day late.  The collectors call and ask for an immediate payment and they don’t seem to care if you have been on time for 6 months or 60 years.  They couldn’t care less and they just ask for the money.  They are starting to act like loan sharks from mob movies when they say “just pay me”!  They truly seem to be unleashing the dogs of war after only one day.

The blogger who got the call was shocked by this but I would advise him to get used to it.  I noticed that these guys from these credit card companies are calling me quickly if I’m late on a payment and they don’t wait long.  I theorize that they have stepped up their enforcement of their debt collections.  Someone has reasoned that if they could just get the calls out quicker and the money in faster than they could collect more.

It is the time value of money.  If the money is in their bank earning interest then they get the interest and not you.  Now remember that they have millions of accounts and even one day quicker on payment could net them millions more dollars so they get the calls out to demand you pay them more and more quickly.  In the future I expect that they will come up with some hour in the day when your payment is due and then they will call you at one minute after that hour has elapsed.

So get used to it as this is the way it will undoubtably be for some time.  For now expect calls to come even if you are one day late and even if you have been on time with your payments for your whole life.  The company and the guy in India don’t care about your payment history or how good of a person you are.  They just want your money now.

One sure-fire way to rid yourself of this headache is to file bankruptcy.  That will stop the calls and end your liability for the debt.

I am a bankruptcy attorney practicing bankruptcy law in San Diego California.  Please visit my website at www.farquharlaw.com.

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