The Credit Crunch, Entrepreneurism and how GM Card will try to exploit YOU…
NickN| October 23, 2007 10:49 amSeveral folks have mentioned that they like hearing about the ups and downs of being an entrepreneur.
So straight from the trenches… here’s a charming tale of just how much GM Card are a bunch usurious, unscrupulous, disingenuous pirates that apparently will try to extort monies from folks if they think they can get away with it. Allegedly, of course…
My blog, my opinion. Take it with a grain of salt. But I have started recording my conversations with them just in case I need it later. And bear with me, this is a long post.
Unless you’ve been living under a rock, you know that the silliness in the sub-prime market has lead to a general tightening of credit for all and sundry. If, like me and Team Monkey, you’re working to build a startup without a sugar-daddy (or sugar-mommy), chances are quite high that your credit rating is taking a bit of a beating. In my case, I had squeaky clean credit, but it’s been a busy year. I got squeezed pretty hard by the housing market decline (Arizona was/is a mess), bought a new car, have moved 3 times in the past year and opened several credit cards/lines of credit (both personal and for the company). All of which has left my once shiny score looking a bit battered.
Enter GM Card. I’ve been a card member since 2003. Thanks to my aforementioned squeaky clean credit, I had a fixed, non-promotional rate of 6.9%. Pretty darn nice – I can’t even get a home equity loan at that rate.
Back in July, they sent me a letter. The letter was a notification that they wanted to up my APR to 32.24%, a great example of a usury rate if ever there was one. In the very small print, there was a note that should I not like this idea, I was free to say so. The account would be frozen for new purchases, but the existing rate (6.9%) would remain in effect until the balance was paid in full.
Tough decision. I sent a letter by registered mail expressing my dissatisfaction with their suggestion (I was this close to quoting Cartman) and asking for confirmation that they received my letter.
Fast forward to today. I get my October statement and sure enough, the APR has been jacked to 32.24%. I call and speak with “a representative”. She tells me that (a) they never received my letter, (b) she doubted that they offered me the chance to refuse the rate increase and (c) there was nothing she could do about it. When I quoted the registered mail tracking number, she changed her tune and suggested that I mail proof to them. When I pointed out the obvious stupidity of confirming a lost letter by mail, she assured me there was no other way to resolve the problem… I asked for a supervisor.
At that point the line went bad, apparently on their end. I couldn’t hear what the supervisor was saying, but apparently they could hear me. I asked that they call me back. 30 minutes later, I was still waiting and called them to try again.
Anonymous person B answers and I immediately request a supervisor. Supervisor “Joan” re-iterated most of what anonymous helper A had said before we got cut off. After I mention phrases like “usury” and “I sent the letter by registered mail, here’s the confirmation from the US Post Office” and “deliberate fabrication of events by GM Card” she relents and tells me that there is a fax number I can send my proof to.
I explain that I’m out of the office and will fax everything she needs within 2 hours.
One nifty thing about GM Card is that they apparently have NO extension numbers for their phones. Uh huh. Riiiight. I wonder how they call each other? So I have no way of reaching “Joan” again. When I point this out, she tells me that she will be there until 7pm and I can just call back and ask for her.
While I was on the phone with “Joan”, “Vanessa” called stating that it was all a big mistake and the problem would all be resolved. I’m unconvinced.
At 6:40pm, I call back. No one answers the phone – it just rings. At 6:45pm I call again. I’m on hold for 11 minutes before speaking to anonymous person C. I ask to be connected to “Joan”. He starts to suggest that he can help me, and I pointedly ask to be put through to “Joan”. Two minutes later, “Adam” answers the phone.
I’m recording the call at this point and it doesn’t begin well. I ask for Joan. Here are the edited highlights:
Me: “Can I speak to Joan – she’s aware of the situation as I already talked to her today”
Adam: “She’s in a whole different part of the world sir. We don’t have a direct line to reach her. Give me your number and she’ll call you back.”
Me: “She told me earlier that she couldn’t do that – I had to call in”
Adam: <silence…>
I explain what’s going on and bring Adam up to speed.
Me: insert diatribe here… “And what I want from you is (a) a very clear statement that you did receive the letter and the account will revert to the prior interest rate; (b) a written confirmation by fax and mail this week. Is that something you can do, yes or no?”
Adam: “err. No.”
Me: “Wow. So what does your magic computer tell you about the status of my account and this bunch of usury extortion bullsh*t from you guys?
Adam: “Well is does show that Joan is working on this to get it reversed back”
Me: “Ooh, so there is a Joan. You can locate her? She’s in the computer system? That’s amazing…”
Adam: “Yeah. No. There’s a Joan. She left notes on the account. One thing I can’t advise is if it’s being done… The reason for that is I’m not working it, somebody else is, so…”
Me: “Oh, so you guys don’t collaborate? You all live in your own separate cubicles and no-one can do anything when somebody pulls up an account?”
Adam: “Exactly. Not only that we have offices all over the world. She’s not even where I’m at – I’m in Oregon”.
After more baiting, he tells me that he can actually send her an email. But he has no way to tell me where she works, when she might next be working or how I can reach her.
I’ll spare you the rest – this is really more therapy for me at this point…
But the moral of this story (apart from the utter stupidity and incompetence that is embedded in GM Card’s customer service structure) is simply this:
If you’re an entrepreneur and you have any dealings with credit card companies, or any other kind of financial institution (and you will), make sure you keep exact copies of ALL of your communications. Send letters by registered mail, or mail with delivery confirmation. And keep all of the information together for as long as you maintain the account. When you close an account, keep the final statement showing zero balance for as long as humanly possible.
Ignore this advice at your peril…and at an APR of 32.24%.
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