Debt Collectors Charge Interest (satire)

Recently I talked with my new debt collection agent "Greg", and discovered the following:

He alleges that Rogers Mobility, is charging a daily interest that works out to 25% per year, thanks to compound interest. Actually, the collection agent that Rogers has retained charges interest. To avoid conflict with the debtor, a debt collection agent will remind him that the company he owes money to is charging that interest.

Indeed, the collections agent is besmirching the reputation of Rogers Mobility. Though it is doubtful that what the debt collector says to me in confidence will actually harm the reputation of Rogers Mobility, given the satirical nature of this blog entry.

Rather than be confrontational, I have decided to play along with Greg since the aim of debt repayment is to continue paying the debt off at the rate which the debt collector and I agreed upon (originally $100 biweekly - every two weeks).

So, I see no harm in letting Greg tell me a fib. He is only concerned getting me ot pay off the debt, not cause me to feel enmity towards the corporation that he represents.

According to Greg, the remaining debt balance I had calculated is $650 is incorrect. Due to compound interest, it is actually $900. That works out to a difference of $250 - which accumulated from November 14 to April 16 (130 days).

That works out to almost $2 a day of interest which gets incrementally smaller every day due to my bi-weekly payments of $100.

So I calculated how long before I am debt-free. it works out to almost 5 months. Once I make my ninth payment circa August 14, I just have to pay off less than $50 and the account will be closed.

My decision then is to increase my bi-weekly payments to $150, which will reduce the debt faster. Rather than waiting up to 5 months, I would be debt free in 14 weeks (3.5 months), with less than $50 to pay on the 14th week.

Rather than give a lesson on the math used to calculate debt, I turned to the solution of an online debt calculator.

https://creditcanada.com/node/30/done?sid=45622&token=6d95d4a74e3445fff9647a1816b32635

No, I didn't go to Credit Canada for help, nor is this a product endorsement of a company that negotiates an interest free debt management plan.

Here's the calculator itself: https://creditcanada.com/debt-calculator

After July of this year, I will have paid my debt to Rogers Mobility. It will another six years before my credit rating improves.

If you need to get your credit report, this URL is useful: http://www.cbc.ca/news/canada/how-to-check-your-credit-report-1.1185975. They have links to Equifax and Transunion to get your annual credt report.

Note: all dollar amounts mentioned in this blog entry are rounded up from the actual amount of debt owed. To meet my debts, I have doubled my work hours and even taken extra work with my employer.

Update on my Debt to Cellphone Provider Rogers and subsidiary FIdo

I am so little I owe Rogers a total of $4000. The debt collector letters don't make me go neurotic anymore because if they did their homework, they know they can't threaten to ruin my credit cos I've done that to myself.

In the last letter received, I notice they added $33 dollars to what I owe, which is "interest".

If I had $1000-1500 on hand, then they'd take it because that's more than what they paid for the accounts they received.

If Rogers and Fido had kept these debts with them, then they could have made it look like two assets.

I also know that I can still send money to my Fido and Rogers accounts via electronic banking and bypass collections.

Letter to Rogers Communication: Retention of Creditor

Here's my letter to Rogers Communication; with personal information redacted to prevent a lawsuit from Rogers:


Dear Sirs,

This is in response to mail sent to me August 30, 2012.

As you know I owe you over $1400 in debt for three accounts registered with you.

I also know the purpose of retention, which is to retain accounts even if they are endebted to you, so that you (the corporation) can show it as an asset.

However, this is not sound money management, as no matter how I try to trick my bookkeeping, I cannot get my debt to you declared as an asset.

Yet, you as a corporation have rights under corporate law as a person, despite the fact that Rogers Communication is not a person but a corporation.

The proof of this surmise is that you fear placing my account with a debt collector because you get paid pennies per dollar for it while the debt collector gets the outstanding balance of over $1400 plus whatever it is able to tack on. Indeed, I could settle for 1/4 - 1/3 of what I owe you, which according to my calculations is about 36 x $350 or $18000. for the three year terms on three of my smartphones.

The debt collector will then settle my account for $4500-6000.

So you see, you are in no position to sell my debt to a debt collector because you don't get $4500-6000 for transfering debt collection from your collections agents to theirs.

Therefpore you have no business dictating payment in full of what I owe you. In future correspondence with me, please do not cast me in a negative light or anything remotely like this. This includes the mention of ruining my account and the like. Since I have managed to do that without your help, it makes no sense on your part to play that line with me.

Thank you for your time.