[lbo-talk] I don't get it?

Bill Bartlett billbartlett at aapt.net.au
Fri Feb 27 17:31:01 PST 2009


Obviously I'm unfamiliar with the US banking system, so I don't quite follow how this extortion racket works. I understand it up to the point where the bank concocts a large debt which it puts into a collection agency. What I don't follow is why you and shag actually pay the extortion demand.

I am speculating that perhaps there is some kind of criminal conspiracy between banks, an agreement that each will voluntarily decline to do business with anyone who refuses to pay the extortion demands of another member of the cartel? I thought that was unlawful in the USA? On several fronts? In any event, surely there would be another bank somewhere in the US who would be willing to open a banking account for you? It sounds implausibly efficient that every single bank in an entire nation of 250 million people is part of such a cartel. An improbably large conspiracy?

So explain it to an outsider. Why did both of you pay exactly, what was the "or else"?

I have this sort of thing happen to me. I recall a phone bill I never paid years ago. (I changed phone companies because the bills I was getting were incomprehensible and I couldn't contact them because they had some stupid call centre menu that went around in circles.)

After about 12 months I started getting calls from a collection agency. I just ignored them. Then it went to another collection agency, who phoned me and started making silly threats about court action and extra fees. I laughed at them. "Go ahead, make my day." They offered to accept half. I agreed and said I'd pay off the lower amount at $10/week. Which seemed to upset the collection agency person. But I sent them $20 a fortnight later, only to get another bill for the full amount.

The contract (OK, it was a unilateral take it or leave it sort of contract, but they accepted the $20, so I would argue that there was an implied acceptance of the terms in my accompanying letter) having been broken, I ceased payment. It went to another collection agency and when they eventually rang me I told them I now wanted this to go to court. I had tried in good faith to negotiate a settlement, but that good faith had not been reciprocated. The account was clearly inaccurate. Please initiate proceedings. Never heard from anyone again.

How does this work in the US? Do collection agencies have thugs come around with baseball bats or something? (And wouldn't you be legally entitled to just shoot them like dogs under US self-defense law?) How do they make you pay?

I can see there's something going on, just by my dealings with another US financial type racketeer, Paypal. Every so often they decide to unilaterally freeze my account(s) and then make all kinds of ridiculous demands for me to give them credit card and bank details. or they will not let me have my own money that is in the account. This seems like breathtaking arrogance to me and I've learned that its pointless trying to discuss it with them reasonably. I just have to lodge a complaint with the financial industry ombudsman, after which Paypal always backs down completely.

But there's something going on there which inspires them to think they can get away with that sort of extortion. Something mysterious to me. I suspect its some kind of cultural thing based on how things work back on their home planet, the USA.

Helpt me understand, I'm curious.

Bill Bartlett Bracknell tas

At 2:02 PM -0600 27/2/09, John Thornton wrote:


>shag wrote:
>
>>Them: "blah blah horse shit blah crappola blah. You can take care of this
>>today ma'am by paying a special rate of 350.00. Otherwise, the 784.49 will
>>keep on racking up interest and late fees."
>

[...]


>The next month there were more and and this time the bank told me
>the only way to guarantee they stopped was to close the account.
>I not only closed that account but closed all my accounts with them
>and went elsewhere.
>Forward 3 years and when I went to open another account I was told I
>had an outstanding balance due from the previous bank that had been
>turned over to a collection agency.
>Neither the bank nor the collection agency had ever contacted me. I
>hadn't moved and the precious bank sent my statements to my house so
>they certainly had my address.
>Why the fuck didn't someone contact me about this I have no idea.
>Maybe it was too small to mess with?
>I was told I owed $680 because additional withdrawals had been made
>from account and I was responsible for any activity for 30 days
>after the account closes.
>I spoke with a lawyer and she told me she would charge me more than
>$680 to fight it and would lose the case anyway.
>I offered the fuckers $250 with the stipulation they report it as
>paid in full in good standing blah, blah, to credit reporting
>agencies.
>They faxed me a copy of the agreement so I paid them.
>It was nothing more than paying $250 for the privilege of having
>money stolen from me as far as I can see.
>
>John Thornton
>___________________________________
>http://mailman.lbo-talk.org/mailman/listinfo/lbo-talk



More information about the lbo-talk mailing list