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.

What’s in your wallet? These huge credit card companies are plenty rich- it’s okay to file for bankruptcy!

Bank of America, Chase, Wells Fargo, Capital One, Citibank, Discover, American Express.  Recognize these guys?  You probably owe them money right now and I’m not talking about for your mortgage, car, or for some other secured asset.  I’m talking about credit cards.  What’s in your wallet?  Probably there is some credit card in there right now with one of these names on it and you are in debt.

If you check you will see that these are very large companies.  They have billions of dollars in assets and if you think about it is a very easy business to run.  Think of them like Joe Pesci in the movie “Casino”.  They get a little money and they “put it on the street”.  But you are the street.  They borrow money at a low-interest rate and lend it to you at a higher rate.  If you default or are just late on the payments then they will jack your interest rates and charge you all sorts of penalties.  They make a tremendous profit on you when you cannot pay them.

Remember they don’t have a plant with machinery where they make things or even an office where they give advice.  They just need a little small space where there is a phone with which they can call you twenty times a day when you don’t pay them.  Are you getting those calls now?  Most of us do and they call now not just when you are a month late or even a few weeks late but if you are a day late.  They seemed to have recently decreased the time they allow you to not pay them.

According to Wikipedia Bank of America is the largest financial services company in America and also the largest bank holding company.  It is the second largest bank in the country by market capitalization.  As of 2010 B of A is the fifth largest company in the U.S. by total revenue and the second largest non-oil company in the U.S. after Wal-Mart!

Wells Fargo is the fourth largest bank in the U.S. by assets but the second largest by market capitalization.  JP Morgan Chase has assets of $2 trillion.  Citigroup has the largest financial services network in the country and it has over 200 million customers.  Get the picture?  They are huge and they won’t miss your debts if you get them discharged in bankruptcy.  Most of the big banks received federal bailouts financed by your tax dollars when they ran into financial difficulty.

Where is your bailout?  Do you get a break when you get into financial difficulty?  These companies are the largest and richest companies in the world and they are deemed “too big to fail” and when they get into trouble they run to the federal government (that’s you) and they ask for and get a bailout so they can make more money.  Did you get a break?  A bailout?  Where can you go when you run into financial trouble?  How about they only call you ten times a day when you owe them money?

Forget about it.  It’s not going to happen.  You will get no breaks from these companies.  They only move one way and that is forward in collecting money from you.  They will call you, hound you, and harass you into paying them.  Your only way out is to file bankruptcy.

Bankruptcy stops the calls, the harassment, and relieves you of the liabilities for those debts.  It makes sense and is the only break you are going to get.

So don’t feel bad for these banks who are too big to fail.  They are the largest and richest entities in the world and they won’t miss your little debts when you file bankruptcy.  They will write it off as a loss on their corporate taxes.  Remember that most people have paid back all of the money they borrowed on their credit cards with interest before they file bankruptcy.  It’s just that the interest rates are so large that they have to keep paying indefinitely.

How long does it take to pay off a card if you make the minimum payment?  I don’t even know anymore but it used to be 30 or 40 years.  That is debt slavery.  Don’t let yourself be a slave!  File for bankruptcy if you have debts you cannot pay!

I am a San Diego bankruptcy attorney.  Please visit my website at www.farquharlaw.com or www.freshstartsandiego.com.  Or call my office for a free consultation on any bankruptcy or debt related issue at (619) 702-5015.  Call now for free credit report and analysis!

For a free e-book: “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” please send a request by e-mail to: farquharesq@yahoo.com.