Chapter Twenty-one 

The Path of the Smart Consumer

Again, this book isn't a rant against using credit. Credit is a terrific thing and it has worked miracles on our economy and our lives. But, the system is nonsensical and clearly slanted in the credit companies' favor. It takes a very smart person to take advantage of credit without being taken advantage of by the credit companies. Or it takes a person with smart help. . .

In fact, few of us pull it off. . . even attorneys can be taken for a ride. When John Heath (a co-author of this book) was young and had just passed the bar exam, he receive a call from one of his student loan lenders. John had racked up some student loans on his way through law school and since he had taken a starter job working for Legal Aid helping disadvantaged people, he had placed his loans on temporary deferment. The lender called John to inform him that he was in default on his student loan. John knew that his loan was in deferment and that couldn't be true. The phone agent told him that there was nothing he could do and hung up the phone. Within a couple of days, John received the first of many collection letters telling him that he was late on his student loan payments. Each time he received a letter, John would call the lender to correct his account and accurately note his deferment. Each time, the agent would say that nothing could be done (after John waited on the phone for an hour or more to speak with an agent.) Finally, after many months of this run-around, John spoke with someone with the ability to figure it out. Apparently, John's student loan had been sold and the new company had failed to accurately note the agreement of deferment. John was instructed to contact the original student loan company and to get a letter proving the deferment.

So, John, now confident that the end was in sight, called the original lender and asked for the letter. They denied his request saying that the new lender already had this information. The agent hung up when John tried to explain that the new lender did not, in fact, have that information. Brimming over with frustration, John called again and tracked down a supervisor. He informed them that he was an attorney and wouldn't hesitate to bring a lawsuit if he didn't get the verification he needed. The supervisor perked up and finally sent the verification of the deferment.

Credit Revolution: Path of the Smart Consumer
© 2007 John C. Heath, Esq., Dr. Randy Padawer, Jayson R. Orvis. All Rights Reserved.
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