Funny Money - Collection of Jokes and Anecdotes

Washington Mutual Bank - Sic Transit Gloria Mundi (Latin: Thus passes the glory of the world)

2011-07-31T17:38:00.000-07:00

During 2009, all of the Washington Mutual Bank branches were rebranded to Chase Bank

or shuttered,
like this one on the intersection of Alma School Road and Chandler Boulevard in Chandler, Arizona (October 2009).

It's still standing empty almost two years with the banner" For Sale/Lease ..."

US Foreign Aid: Lend-Lease (1941-1945)

2011-07-30T15:47:00.000-07:00

Lend-Lease (Public Law 77-11) was the name of the program under which the USA supplied the United Kingdom, the Soviet Union, China, France, and other Allied nations with vast amounts of war material between 1941 and 1945.

The Lend-Lease bill was signed into law on March 11, 1941 and
was called An Act to Further Promote the Defense of the United States.

A total of $50.1 billion (equivalent to $769.3 billion at 2011 prices) worth of supplies were shipped:
$31.4 billion to Britain,
$11.3 billion to the Soviet Union,
$3.2 billion to France and
$1.6 billion to China.

The terms of the agreement provided that the material was to be used until time for their return or destruction.
Supplies after the termination date were sold to Britain at a discount, for £1.075 billion, using long-term loans from the U.S.

There was no debt; the U.S. did not charge for aid supplied under this legislation.

Although most Red Army tank units were equipped with Soviet-built tanks,
their logistical support was provided by hundreds of thousands of U.S.-made trucks.
By 1945 nearly two-thirds of the truck strength of the Red Army was U.S.-built.

Trucks such as the Dodge 3/4 ton and Studebaker 2½ ton, were the best trucks available in their class on either side on the Eastern Front.

American shipments of telephone cable, aluminium, canned rations, and clothing were also critical.

President Franklin D. Roosevelt (FDR), eager to ensure public consent for this controversial plan, explained to the public and the press that his plan was comparable to one neighbor's lending another a garden hose to put out a fire in his home.
"What do I do in such a crisis?" FDR asked at a press conference.
"I don't say... 'Neighbor, my garden hose cost me $15; you have to pay me $15 for it' …I don't want $15 — I want my garden hose back after the fire is over."

Stalin, during the Tehran Conference in 1943, acknowledged publicly the importance of American efforts during a dinner at the conference: "Without American production the United Nations could never have won the war."

There was no charge for the Lend Lease aid delivered during the war, but the Americans did expect the return of some durable goods such as ships.

Congress had not authorized the gift of supplies after the war, so the administration charged for them, usually at a 90% discount.

Large quantities of undelivered goods were in Britain or in transit when Lend-Lease terminated on 2 September 1945.

Britain wished to retain some of this equipment in the immediate post war period, so these

Lend-lease items retained were sold to Britain at 10% of nominal value, giving an initial loan value of £1.075 billion for the Lend Lease portion of the post-war loans.

Payment was to be stretched out over 50 annual payments, starting in
1951 and with five years of deferred payments, at 2% interest.

The final payment of $83.3 million (£42.5 million) was made at the end of 2006.

Haym Solomon, financier of the American Revolution

2011-07-30T10:54:00.000-07:00

Haym Solomon (or Salomon)(April 7, 1740 – January 6, 1785)
was a Spanish and Portuguese Jew who immigrated to New York from Poland during the period of the American Revolution,
and who became a prime financier of the Continental Army during the American Revolutionary War against Great Britain.

In August of 1781, the Continental Army had trapped Lieutenant General Charles Cornwallis in the little Virginia coastal town of Yorktown. George Washington and the main army and the Count de Rochambeau with his French army decided to march from the Hudson Highlands to Yorktown and deliver the final blow. But Washington's war chest was completely empty, as was that of Congress. Washington determined that he needed at least $20,000 to finance the campaign. When Washington was told that there were no funds and no credit available, he gave a simple but eloquent order: "Send for Haym Solomon". Haym Solomon came through, and the $20,000 was raised. Washington conducted the Yorktown campaign, which proved to be the final battle of the Revolution, thanks to Haym Solomon.

In 1975 the United States Postal Service issued a commemorative stamp honoring Haym Salomon for his contributions to the cause of the American Revolution.

Some good news with Arizona state budget....

2011-07-29T20:14:00.000-07:00

....came from one-time gains in the individual income tax,
due to higher capital-gains taxes as Arizonians sold their investments,
and from a drop in the mortgage-interest deduction due to people losing their homes.

Previously approved Arizona state budget assumed that 2011 fiscal year
would end (on June 30, 2011) with a $332 million deficit.

Now, it looks that year-end deficit is closer to $32 million.

How Bank of America was born

2011-07-27T23:03:00.000-07:00

One of "too big to fail" (2008) was Bank of America, known before 1999 as Nations Bank.

Nations Bank assumed this new name after acqusition of original Bank of America in 1998.

Original Bank of America was founded in San-Franciso (1904)
by Amadeo Giannini to provide banking services
to immigrants who were denied services from other banks.

In his early childhood Amadeo Giannini lost his father who was shot while trying to collect on a $10.00 (ten dollars) debt.

When the 1906 San Francisco earthquake struck,
Giannini was able to get all deposits out of his bank building.

Because San Francisco's banks were in ruins and unable to open their vaults, Giannini was able to use the rescued funds to start lending within a few days of the disaster.

From a makeshift desk, he loaned money to anyone who was willing to rebuild.

As he told later, all of these loans were repaid.

Is Uncle Sam too big to fail ?

2011-07-27T19:40:00.000-07:00

Three years ago (October 2008) USA government bailed out some big corporation (click here to know more about TARP) that supposedly were "too big to fail"...

Maybe, it's their turn to save the good old Uncle Sam from default before Doomsday August 2, 2011 coming?

That's what friends are for, aren't they ?

Verizon never stops working for you

2011-06-20T19:12:00.001-07:00

Today Verizon credited me $9.99 back after I called them.

US Celebrity Soulmate Fraud - Premium Message Charge $9.99

2011-06-19T17:31:00.000-07:00

Such thing happened to me 05/17/2011, that I mistyped "facebook.com" (like "ffacebook.com"),
and an "iPad 2" sweepstake page popped up.

Assuming that Facebook authorized this, I entered my cellphone number.

One month later I found $9.99 charge in my Verizon bill:
"5/17/11 6:52PM Premium Messaging PREM_SMS 41933 us.celebrity-soulmate.com -- $9.99"

Chandler planning more bus-service cuts

2011-06-02T17:23:00.000-07:00

Source: Arizona Republic

Chandler planning more bus-service cuts

Sagging revenue from a county transportation sales tax is forcing Chandler
to plan more bus-service cuts less than a year after a state funding sweep brought reduced hours, fewer stops and shorter rides on several routes through the city.

The changes, likely to start in January, could end the city's only bus service into south Chandler and eliminate the McClintock Drive route into Tempe. Late night and weekend
service would be reduced on several routes and promised route expansions would be canceled under proposals that go to a City Council vote in August.

Dan Cook, transportation manager, told members of a City Council subcommittee Tuesday that residents will have a chance to comment before the cuts are final. During the last round of cuts, residents' support for some routes helped to preserve them. The city is targeting routes and times with low ridership, Cook said.

Popular ones like the 542 express from the Tumbleweed park-and-ride lot to downtown Phoenix won't be touched, he said. Neither will Dial-a-Ride services. The new Arizona Avenue Link service to the light rail in Mesa that started in January also will not be affected. Initial ridership reports on the Link have been low, but city officials say the route
is too new to evaluate based on usage.

Cook said declining Proposition 400 transportation-tax revenues for Chandler will be an estimated $22 million less than forecast over the next 15 years. Since the state snatched $1.3 million from the city's annual Local Transportation Assistance Fund last year, Chandler has no other way of financing bus service. Tempe, Mesa and Phoenix have a dedicated transit sales tax, but Chandler voters defeated a proposed transit tax in 1999. During Tuesday's committee session, Councilman Rick Heumann said the city should consider a resident survey to gauge support or opposition for such a tax but stressed that he isn't proposing one.

During public hearings before last year's cuts were decided, several regular riders said they feared it will be more difficult to get to work or use bus transportation for weekend recreational trips. Councilman Kevin Hartke told the committee this week that he knows of one resident who depends on public transportation and purchased her
home in south Chandler because it was close to the area's only bus route. Now that route on south Dobson Road is on the chopping block. If city officials' recommendations are
approved, the Dobson Road route, which goes to Ocotillo Road then south on Alma School Road to Chandler Heights Road, will end at Pecos Road.

Cook said the Dobson route has logged very low ridership and Intel removed its bus stop on that route because it wasn't used.
City transit officials will consider different routes into south Chandler for future service, possibly on Arizona Avenue or Alma School Road, he said. "Ultimately, it's important that we get transit services to south Chandler."

Bus route and schedule changes have regional implications, and Chandler is
working with neighboring cities. Cook said no changes were proposed to Elliot Road service because it is one of the few routes through Gilbert. Talks are ongoing with Tempe on the west Chandler routes that connect the two cities, and Cook said he is waiting to hear if Phoenix is going to eliminate the 541 express route from Arizona Avenue and Ray Road to downtown Phoenix.

Chandler Arizona - new (2011) City Hall Building is costing $47 million

2011-06-02T17:06:00.000-07:00

Source: The Smith Group
Cases Studies: Chandler City Hall

Settled in the 19th-Century, the City of Chandler (Arizona) is representative of the "New West". Once an agricultural ranch township, today Chandler is a growing community home to high-tech companies and nearly 250,000 residents. The city envisioned their new city hall as a modern complex that would serve as a gathering destination for the citizens of this forward-thinking community, without abandoning its rich history.

SmithGroup designed an elegant, yet appropriate building for the community. The new and inviting facilities create a sense of place and identity to encourage activity and interaction between visitors. The multi-purpose complex reflects the surrounding terrain and consists of council chambers, administrative offices, a public television studio and a 330-space parking structure.
Cost: $47 million

$2,000,000 Michigan lottery winner defends use of food stamps

2011-05-19T21:12:00.000-07:00

A Michigan man who won $2 million in a state lottery game continues to collect food stamps 11 months after striking it rich.

Leroy Fick, 59, of Auburn won $2 million in the state lottery TV show "Make Me Rich!" last June (2010).
But the state's Department of Human Services determined he was still eligible for food stamps.

Eligibility for food stamps is based on gross income and follows federal guidelines; lottery winnings are considered liquid assets and don't count as income. As long as Fick's gross income stays below the eligibility requirement for food stamps, he can receive them, even if he has a million dollars in the bank.

Food stamps are paid for through tax dollars and are meant to help support low-income families.

"If you're going to try to make me feel bad, you're not going to do it," said Fick.

Earlier Fick told the DHS officials he'd won $2 million but was told he could keep using the Bridge Card issued to him to buy groceries.

Though the food stamp program is federal and states must follow U.S. guidelines, states sometimes request waivers of rules.

"For Leroy Fick to continue to use a Bridge Card, paid for by the taxpayers, after winning the lottery, is obscene," said State Sen. Rick Jones, R-Grand Ledge. "What a waste of taxpayer money."
.

Opportunities with Elance.com

2011-05-08T11:56:00.000-07:00

Elance offers some interesting opportunities for anyone, who has skills and talent and is seeking independent work online.

Plaintiff’s Motion to Compel Acceptance of Lunch Invitation

2011-01-30T15:14:00.000-08:00

SUPERIOR COURT OF ARIZONA

MARICOPA COUNTY

CV 2003-020242 07/19/2006

CLERK OF THE COURT
JUDGE PENDLETON GAINES A. Beery
Deputy

FILED: 07/21/2006

PHYSICIANS CHOICE OF ARIZONA INC DAVID A SELDEN

v.

MICKEY MILLER, et al. DOW GLENN OSTLUND
DAVID ROSENBAUM
ROSENBAUM & ASSOCIATES PC
650 DUNDEE RD
STE 380
NORTHBROOK IL 60062

RULINGS ON PENDING MOTIONS

The Court has reviewed the pending motions. Two will be granted. The others will be deferred.

Plaintiff’s Motion to Compel Acceptance of Lunch Invitation

The Court has rarely seen a motion with more merit. The motion will be granted.

The Court has searched in vain in the Arizona Rules of Civil Procedure and cases, as well as the leading treatises on federal and Arizona procedure, to find specific support for Plaintiff’s motion.
Finding none, the Court concludes that motions of this type are so clearly within the inherent powers of the Court and have been so routinely granted that they are non-controversial and require no precedential support.

The writers support the concept. Conversation has been called “the socializing instrument par excellence” (Jose Ortega y Gasset, Invertebrate Spain) and “one of the greatest pleasures in life” (Somerset Maugham, The Moon and Sixpence). John Dryden referred to “Sweet discourse, the banquet of the mind” (The Flower and the Leaf).

Plaintiff’s counsel extended a lunch invitation to Defendant’s counsel “to have a discussion regarding discovery and other matters.” Plaintiff’s counsel offered to “pay for lunch.”
Defendant’s counsel failed to respond until the motion was filed.

Defendant’s counsel distrusts Plaintiff’s counsel’s motives and fears that Plaintiff’s counsel’s purpose is to persuade Defendant’s counsel of the lack of merit in the defense case.
The Court has no doubt of Defendant’s counsel’s ability to withstand Plaintiff’s counsel’s blandishments and to respond sally for sally and barb for barb. Defendant’s counsel now makes
what may be an illusory acceptance of Plaintiff’s counsel’s invitation by saying, “We would love to have lunch at Ruth’s Chris with/on . . .” Plaintiff’s counsel.

Plaintiff’s counsel replies somewhat petulantly, criticizing Defendant’s counsel’s acceptance of the lunch invitation on the grounds that Defendant’s counsel is “now attempting to choose the location” and saying that he “will oblige,” but Defendant’s counsel “will pay for its own meal.”

There are a number of fine restaurants within easy driving distance of both counsel’s offices, e.g., Christopher’s, Vincent’s, Morton’s, Donovan’s, Bistro 24 at the Ritz-Carlton, The
Arizona Biltmore Grill, Sam’s Café (Biltmore location), Alexi’s, Sophie’s and, if either counsel has a membership, the Phoenix Country Club and the University Club. Counsel may select their own venue or, if unable to agree, shall select from this list in order. The time will be noon
during a normal business day. The lunch must be conducted and concluded not later than August 18, 2006.

Each side may be represented by no more than two (2) lawyers of its own choosing, but the principal counsel on the pending motions must personally appear.

The cost of the lunch will be paid as follows: Total cost will be calculated by the amount of the bill including appetizers, salads, entrees and one non-alcoholic beverage per participant.
A twenty percent (20%) tip will be added to the bill (which will include tax). Each side will pay its pro rata share according to number of participants. The Court may reapportion the cost on application for good cause or may treat it as a taxable cost under ARS § 12-331(5).

During lunch, counsel will confer regarding the disputes identified in Plaintiff’s motion to strike Defendant’s discovery motion and Defendant’s motions to quash, for protective order and for commission authorizing out-of-state depositions.4 At the initiative of Plaintiff’s counsel,
a brief joint report detailing the parties’ agreements and disagreements regarding these motions will be filed with the Court not later than one week following the lunch and, in any event, not later than noon, Wednesday, August 23, 2006.

Defendant’s Motion to Strike Proposed Amended Complaint

To demonstrate to counsel that the Court has more on its mind than lunch, the Court has considered Defendant’s motion to strike Plaintiff’s proposed amended complaint. The motion will be granted.

Plaintiff’s proposed amended complaint is 56 pages long and has 554 separately numbered paragraphs. It contains 19 counts. It is prolix and discursive in the extreme. It violates the Court’s order of July 22, 2005, permitting the Plaintiff to file “an agreed-upon form
of Amended Complaint to clean up housekeeping matters.” It is not the “short and plain statement” required by Rule 8(a)(2). It is a pleading of a type specifically condemned in Anserv Insurance Services, Inc., vs. Albrecht, 192 Ariz. 48, 49-50 (1998) (trial court should have stricken 269-page, 1322-paragraph complaint). Most importantly, it violates the observation of
French philosopher Blaise Pascal, who concluded a long letter with an apology, saying he “had not the leisure to make it shorter.” Since this is a 2003 case with no end in sight, Plaintiff’s counsel has the leisure to make his complaint shorter.

ORDER

IT IS ORDERED:

1. Plaintiff’s motion to compel Defendant’s counsel’s acceptance of lunch invitation is granted on the terms and conditions set forth above.

2. The parties are directed to file the joint report referred to above.

3. Further action on the parties’ pending discovery motions is deferred pending receipt of the joint report.

4. Defendant’s motion to strike Plaintiff’s proposed amended complaint is granted.

5. The oral argument set in this division on August 2, 2006, at 9:15 a.m. is vacated.

JDBs' (Junk Debt Buyers) Lawsuits and "Volenti non fit injuria"

2010-11-30T18:03:00.000-08:00

It looks, like JDBs (Junk Debt Buyers) completely ignore
the maxim "volenti non fit injuria" which means that if one, knowing and comprehending the danger, voluntarily exposes himself to it, though not negligent in so doing, he/she is deemed to have assumed the risk and is precluded from a recovery for an injury resulting therefrom.

JDB's sole business is a purchasing distressed (charged-off) consumer accounts
which it tries to collect thereafter, claiming a monetary damage from an alleged debtor who had no idea about JDB's very existence.

Kate Middleton's family is selling official England merchandise - by Royal Appointment

2010-06-12T11:52:00.000-07:00

Prince William's girlfriend Kate Middleton is selling official England merchandise - by Royal Appointment.

Her family firm's website www.partypieces.co.uk
has been given the go ahead by the Football Association - president,
Prince William - to sell official England gear for children's parties.

Mail-order site Party Pieces is owned by Kate's parents Carole and Michael.

Kate works as the company's web designer and chief photographer of children's party paraphernalia.

And yesterday FA officials confirmed the company had been given the green light to cash in on the World Cup 2010 by selling a range of officially registered memorabilia.

The site advertises a £6.99 England Football Party Kit which includes plates, cups, bunting and napkins shaped as England shirts - all of them bearing the official Three Lions badge and Umbro logo.

The Berkshire-based firm was started in 1987 in the family kitchen by Kate's mom.

Arizona lawmaker wants to keep payday loans

2010-01-16T20:23:00.000-08:00

A state lawmaker has introduced a bill that would allow payday lenders to continue operating indefinitely in Arizona.
Payday loans allow people to borrow money against their future earnings.

The law authorizing payday loans expires June 30, 2010.
The measure sponsored by Republican Rep. Andy Tobin of Paulden would repeal the termination date and change some regulations.

However, Arizona voters in 2008 rejected a ballot measure that would have indefinitely authorized payday loans, often at high (300-400%) interest rates.

County authority apparently razes Canonsburg, Penn. house sold at tax sale

2010-01-16T20:06:00.000-08:00

CANONSBURG, Penn. - A man who purchased a home in an August 2009 tax claim sale was surprised to find the house missing when he went to check on it Christmas Eve.
Billy Joe Sanders of Pittsburgh, filed a report with Canonsburg police that the house he purchased at 201 Peco St. had been demolished.

Police went to the address and confirmed that the one-story house and garage were no longer there. Neighbors told police the structures were torn down in October.

The buildings on Peco Street were apparently among those slated to be demolished by the Washington County Redevelopment Authority using funds the borough receives through a Community Development Block Grant.

Sanders, representing Lots of Realty.com, was the successful bidder Aug. 13 for the property during a tax sale by the Washington County Tax Claim Bureau. His bid of $5,500 was accepted for the property.

Recorder of deeds for Washington County, said if a property on the tax sale list is expected to be demolished, that fact is usually announced at the sale. Some municipalities notify the office of plans to raze structures, while others do not. But, even if plans for the property are not announced, they are all sold under a "buyer beware" clause and those purchasing them should first do their homework, including checking with the municipality and doing a title search.
"Some don't have a good title," she explained.

Sanders said he had not been notified by anyone that the house was slated to be razed.

He showed police his deed to the property and correspondence from the tax claim bureau informing him that he was the successful bidder on the property. He also had a receipt for the realty transfer tax and a receipt dated December 23 from the recorder of deeds office.

"I didn't know I had to go and make sure the property was there before I recorded the deed," said Sanders, who had plans to renovate the house.

Borough Manager said the borough sets aside about $100,000 each year to have abandoned or unsafe properties razed. The borough keeps a list of properties, and each year about two or three are demolished.

Sanders said he plans to either send a bill to the county or file a lawsuit. But he will not get his $5,500 back, said County Recorder.

She did note there are occasions when people have gotten good deals at the tax sales, including one man who recently purchased a $400,000 home for $20,000.

Store clerk accused of stealing $1M lottery prize

2009-11-14T19:13:00.000-08:00

A 25-year-old convenience store (in the area of Austin, Texas) clerk pocketed a customer's $1 million winning lottery ticket, claimed the prize and skipped town, possibly back to his native Nepal, authorities said.

Pankaj Joshi took 67-year-old Willis Willis' winning Mega Millions megaplier ticket after Willis asked Joshi in May 2009 to check whether any of his numbers were winners, investigators said in a search warrant affidavit October 2009).

Joshi claimed the prize — about $750,000 after taxes — at the lottery claim center in Austin, Texas had the money wired to a bank account and disappeared.

Nick Parveez, Joshi's former manager at Lucky's Food Store in Grand Prairie, near Dallas, called the lottery commission in July 2009 to voice his suspicions about Joshi after hearing that his store sold a $1 million
winning ticket.

Joshi, who was a student at the University of Texas at Arlington and had worked at the store for five years, was charged in Travis County in September 2009 with one count of claiming a lottery prize by fraud.
If convicted, he could face up to 20 years in prison.
A judge set Joshi's bond at $10 million.

Joshi transferred some of the money to various bank accounts after the initial deposit by the lottery, prosecutors said. Authorities have recovered $365,000 from Joshi's account.

It wasn't clear when the money might be returned to Willis, if it's proven in court to be his.

Investigators believe Joshi may have returned to Nepal.

Willis, a regular customer at Lucky's, said he played the lottery two to three times a week using a set batch of numbers. He said he bought $10 worth of Mega Millions megaplier tickets on May 29, 2009 for that
night's drawing, according to the affidavit.

Willis told investigators he went to the store two days after the drawing to check the results because he hadn't been able to find the winning lottery numbers on television or check them in the newspaper.

Investigators used the lottery transaction system to see if the winning ticket had been scanned and found it was checked on May 31. An inspection of the store's check processing computer found that Willis had cashed a check at the store and purchased lottery tickets two days earlier using set numbers. Willis also produced a lottery play slip showing the winning numbers.

Texas Lottery Commission officials said that they always recommended players sign the back of their tickets when they buy them in case of loss or theft.

======================================================

WANTED
By U.S. MARSHALS

Name: JOSHI,PANKAJ
Alias: PANKAJ,JOSHI

Sex................................................. MALE
Race...............................................ASIAN OR PACIFIC
ISLANDER
Date of Birth................................. 03/12/1984
Place of Birth................................Nepal
Height............................................5'08"
Weight........................................... 144 pounds
Eyes............................................... Brown
Hair............................................... Black

CHARGE: FRAUD, UNLAWFUL FLIGHT TO AVOID PROSECUTION

BOND: $10,000.000.00
PANKAJ JOSHI IS CURRENTLY SOUGHT BY THE LONE STAR FUGITIVE TASK FORCE. JOSHI WAS INDICTED IN 2009
BY A TRAVIS COUNTY GRAND JURY IN AUSTIN, TX FOR CLAIMING A LOTTERY PRIZE BY FRAUD, AND IN THE
WESTERN DISTRICT OF TEXAS FOR UNLAWFUL FLIGHT. IF YOU KNOW THE WHEREABOUTS OF PANKAJ JOSHI,
YOU ARE ENCOURAGED TO CONTACT THE LONE STAR FUGITIVE TASK FORCE AT (512) 916-5393 (24 HRS) OR YOUR
NEAREST LAW ENFORCEMENT AGENCY.

http://www.usdoj.gov/marshals

NOTICE TO ARRESTING AGENCY:
Before arrest, validate warrant through National Crime Information Center (NCIC).
If arrested or
whereabouts known, contact the nearest United States Marshals Office or call the United States Marshals Service Headquarters at
1-877-WANTED2.
U.S. Department of Justice
United States Marshals Service

Man makes living by selling the shirt on his back

2009-11-14T19:00:00.000-08:00

A T-shirt a day has helped to survive an unemployed American man who is
making about $85,000 a year by selling advertising space on his torso.
Jason Sadler, 26, a former marketing professional from Florida, founded his own company, www.iwearyourshirt.com, in 2008 with the idea to wear a T-shirt supplied by any company and then use social media tools to promote the firm.
For his human billboard service, Sadler charges the "face value" of the day so January 1 costs $1, while December 31 costs $365.

Debt Collection's Industry is booming

2009-10-18T01:58:00.000-07:00

Across the USA, dozens of established debt collection agencies are expanding their operations and hiring collectors, managers and support staff to keep up with the rising tide of bad debt due to massive job losses.

With billions of dollars outstanding on millions of past due accounts, creditors want their money now and collection agencies with a track record of success are cashing in.

The extra work has been a mixed blessing for the industry. There's more opportunity, but recovery rates are down because it's harder to collect during a recession when people don't have as much money.

Debt collection companies very often use complicated scoring models to determine the 20 percent of accounts that will pay 80 percent of their debt. Those accounts go to their best collectors. Similar predictive software helps companies better gauge their recovery rates and make sound hiring decisions.

A lot of debt collection companies report that they were spending more money to collect less.

For consumers, one benefit of the troubled economy is that more creditors are willing to accept payment plan arrangements and debt settlements for a portion of outstanding account balances.

BAILIFFS FOR 5¢ BILL

2009-10-18T01:53:00.000-07:00

A FIVE-CENT DEBT to the Barbados Water Authority (BWA) has landed a dead St Philip man in the hands of debt collectors.

Orville Ramsay was one of the delinquent customers the BWA assigned to its four debt collection agencies as part of a process to settle arrears.

In a letter dated September 14, 2009, Ramsay, of Woodbourne Park, St Philip, was informed that his outstanding balance of $0.05 had been assigned to the debt collection company W. H. Bryan & Co. Ltd. It also contained a telephone number for Ramsay to call to settle the balance.

Ramsay passed away three years ago.

When asked about the rationale of assigning such a small amount to a collections agency, the BWA's financial controller Lorna Mascoll said the letters were generated automatically by the computer after a specified period of time.

"We are going to have to put in a minimum level, so that we could exclude those kinds of amounts. It's up to us now to put in a proviso, whereby if it's above a certain amount, then we could just generate the letter and send it out. That wasn't done," she told the WEEKEND NATION yesterday.

Mascoll apologised to such customers for any inconvenience or frustration caused, and said the situation would be rectified.

"Anything like three cents, five cents, that basically we'll write off. I would say anything less than $10 we'll make recommendations to write those amounts off," she stated.

While the figure has to be approved, Mascoll said she would also be making a recommendation for the minimum figure of $100 in arrears on accounts to be handed over to the debt collectors.

While there is no set fee charged by the debt collectors, she said the four companies on retainer were paid a commission of 15 per cent on anything they collected.

This means that W. H. Bryan & Co Ltd. would have been paid three-quarters of a cent on Ramsay's account.

Closed accounts like Ramsay's are assigned to debt collectors after being in arrears between six months and one year. In cases like this one when the account holder has passed on, Mascoll explained the account remains in the person's name and letters are sent out until someone else comes forward to transfer ownership.

According to a release from the Government Information Service on Wednesday, the BWA is currently disseminating the Let's Work Together On Settling Your Arrears brochure and warning letters to customers whose accounts have been in arrears for more than eight months, "and are in the process of being handed over to collection agents".

Israeli woman mistakenly junks $1 million mattress

2009-09-07T13:05:00.000-07:00

An Israeli woman mistakenly threw out her mother's old
mattress she said had almost $1 million inside, setting off a
frantic search through tons of garbage at a number of landfill
sites on Wednesday. The woman, identified only as Anat,
a resident f Tel-Aviv, told to a reporter
that she bought her elderly mother a new mattress as a
surprise present on Monday — and threw out the old one.

The next day, she said, she remembered that she had
hidden her life savings inside the old mattress. "I woke up in
the morning screaming, when it hit me what happened," said Anat.

She went to look for the mattress, but it had already been hauled away
by garbage collectors, she said.
Searches at three different landfill sites turned up nothing.
She said the money was in U.S. dollars and Israeli shekels.
She refused to say how she acquired such a large sum.
"It was all my money in the world," she said.
There was no way to verify her claims, and she
refused to disclose key details.

The Israeli daily "Yediot Ahronot" published a picture
of the woman searching through garbage at a dump in southern Israel.
The picture shows the woman, dressed in a white top and black pants
with her back to the camera,
picking through a huge pile of trash that fills the frame about 10 feet (3 meters) in all directions.

Yitzhak Borba, the dump manager, told Army Radio that his staff was helping the woman,
saying she appeared "totally desperate."
He said the mattress was hard to find among the 2,500 tons of garbage that
arrives at the site every day.
He said he increased security at the site to keep would-be treasure hunters away.
The woman said the money had been stashed in a mattress
because she had had "traumatic experiences
with banks" in the past. She would not elaborate.

Wed Jun 10, 2009

More about securing car payments with Sekurus On Time

2008-10-04T23:53:00.000-07:00

From www.sekurusontime.com:

The ON TIME system is a legal electronic payment protection unit that uses microprocessor-based technology to turn credit-challenged prospects into paying customers who pay in a timely manner. ON TIME will remind the vehicle operator when payments are due, and it will disable the vehicle if payments are not made.

The Key Pad system (right) visually reminds customers of their payment status.

An LED will flash green to confirm when payments are current. When a payment is due, the flashing LED will turn yellow, and the customer will be aware that a payment must be made.

3 days before the vehicle is disabled, the number 3 on the key pad will flash, reminding the customer that he/she is on their final 3 days.

2 days before the vehicle is disabled, the number 2 on the key pad will flash, reminding the customer that he/she is on their final 2 days.

1 day before the vehicle is disabled, the number 1 on the key pad will flash and the device will beep. This reminds the customer that they are on their last day; within a 24 hour period, the vehicle will not start.

Bid of $1.75 on eBay gets abandoned Saginaw (Michigan) home

2008-10-04T23:44:00.000-07:00

SAGINAW, Mich. - With a winning bid of just $1.75, a Chicago woman has won an auction for an abandoned home in Saginaw.

Joanne Smith, 30, recently was the top bidder for the home during an auction on eBay, The Saginaw News reported. Her bid was one of eight for the home.

"I am going to try and sell it," she told the newspaper. "I don't have any plans to move to Saginaw."

Smith said she hasn't seen the property or visited Saginaw, which has been hard-hit by economic troubles in recent years.

There's a notice on the door of the home saying a foreclosure hearing is pending, the newspaper said. She must pay about $850 in back taxes and yard cleanup costs.

High-tech gear disables car if borrower misses payment

2008-04-13T12:40:00.000-07:00

March 31, 2008

MURRIETA, Calif.
When the light starts to flash, you had better have the cash.

That's the reality for millions of subprime borrowers whose used car purchase is contingent upon having an unusual option: a little box mounted underneath the dashboard that forces them to make their payments on time.

A light on the plastic box flashes when a payment is due. If the payment isn't made and the resulting code punched in to reset the box, the vehicle won't start. The next step is a visit from the repossession man.

As tighter credit crunches consumers, it seems business can only get better for Sekurus (www.sekurus.com), a company based in this suburb east of Los Angeles. It's among several companies that market such devices.

"We're just starting to see that," says Sekurus CEO Mike Simon, as the potential market of an estimated 7 million subprime auto borrowers continues to swell.

The device helps stave off default, a growing problem. Car and truck repossessions this year are predicted to hit the highest level in at least a decade, according to Manheim, a wholesale auto-auction service.

As more dealers look for ways to protect themselves, Simon says privately held Sekurus has grown at a 30% clip in recent years. Revenue goal this year: $20 million.

A forerunner company to Sekurus was founded in 1995 to sell anti-theft devices for cars based on radio-frequency identification, or RFID, technology. But within a couple of years, lenders had another idea: Could engineers come up with a device to force car buyers to pay up on time?

Sekurus was founded in 1999 and started selling On Time, as the device is called. It has sold 250,000 at up to $250 each. Most are bought by finance companies or dealers who cater to the most troubled car buyers, those who need basic transportation yet have checkered credit histories.

The box's LED light starts blinking when a payment is nearly due. On deadline day, the unit not only blinks, but beeps. Motorists find it so annoying that it drives "them absolutely nuts," Simon says.

When the customer makes the payment, the lender gives them a six-digit code to enter into the box.

The device lowers default rates for subprime auto loan borrowers that typically run about 30% to about 5%, according to Simon. When default rates fall, lenders feel more secure offering financing for more valuable cars to high-risk customers. By forcing buyers to pay on time, the device also rebuilds their credit record.

Car dealers say most customers aren't thrilled to punch in a code with every payment but grow accustomed to the device.

"We've used it as a tool to keep the repo rates down," says Jeff Hamilton, partner in the family-owned Hamilton Classic Cars in Chester, Va. "We don't have to go after them as much." Most of his customers are required to make payments twice a month, and often wait until the last day, "when it starts beeping at them."

Cedric Brown, a loan specialist at Star Loan Acceptance Center in Clifton Heights, Pa., says he's had a great response. "We are able to help a lot of people who otherwise might not be able to get a vehicle," he says. A few customers, he adds, even grow to like the discipline it enforces.

Car dealers have a choice when it comes to such payment devices.

One Sekurus rival is Pay Technologies in Cleveland, which sells mostly wireless systems. Dealers can access accounts through the Internet and send a message to the device in the car as with a paging system. Again, the car is shut down if payments are not made.

"It's a huge improvement," says President Jim Krueger. He says Pay Technologies started a decade ago with a keypad system "and I can't tell you how many calls we got on the weekends" from customers who lost codes or tried to enter the wrong one.

Another competitor is PassTime USA in Littleton, Colo., which uses a mix of keypad and wireless systems. President Frank Jacobsen says he thinks the credit crunch will "make a difference" in sales, along with payments from the federal economic stimulus package that could boost car buying.

Sekurus is continuing to introduce products. The latest enhancement is coupling the keypad to a global positioning device. Not only will the car's starter automatically shut off, but a message will go to the loan holder with its location to make repossession easier.

Simon says he hopes the new system will give lenders added assurance, allowing more high-risk borrowers to buy better cars.