April 14, 2008

A Banks Nightmare

Several years ago I decided to earn some extra money by becoming a Secret Shopper. I was retired and did not want the restrictions of a part time job so I thought becoming a Secret Shopper sounded like a nice change of pace. I found several companies who were hiring at that time and became a fairly regular shopper with one of them. Unlike what most people perceive, shopping does not have to be in a department store where you make a purchase and evaluate the service you received. This is how some secret shoppers work, but was not what I was expected to do.

My first few jobs were at fast food restaurants where I was expected to evaluate the food inside, the food at the drive-up and the rest rooms, along with the maintenance of the grounds. This required the completion of a very long form and the compensation for all of this work was exceptionally poor. After two fast food assignments, I knew this was not for me. I would not be returning to fast food shops until their pay increased dramatically.

Eventually, I contacted a company who had a different type of shopping requirement. They wanted people to shop financial institutions and ask specific questions about a variety of aspects of banking. The evaluations were of the service received from the greeter to the person who answered your questions and provided information regarding specific products. Each shop required I ask certain questions and record the answers I was given. I had to time how long it took to be welcomed in the bank and how long before I received attention from the person I needed to speak with. The most difficult part of the shop was that the form you had to complete required the names of the people you came in contact with and a description of them. Employees were supposed to be wearing badges with their names displayed, but some did not. It was hard to memorize the physical details of everyone who spoke with you without taking any notes. There were times when I would come in contact with as many as five people. A great deal of concentration was needed to match all of their names and descriptions while still carrying on conversations with them.

Bank shops were very interesting, paid well and you were able to visit several branches in one day, enabling you to receive a better rate of pay for your time invested.

One job was to inquire about checking accounts. You had to ask for interest rates, minimum balance requirements and specific charges relating to the accounts. You always had to provide a different name which was the part I really didn’t like. It’s hard to respond to a new name when someone addresses you that way. They also required that I leave a telephone number for follow-up. Although I didn’t like leaving a phone number (I left my cell number) and the false name, the rest of the shop was pleasant and easy to perform. I found that I could do several shops in an area and earn a very good salary.


Other shops had me inquiring regarding mortgages, investment of retirement funds, savings accounts, CD rates (both IRA and regular), car loans and home equity loans. All of these came with individual questions which had to be responded to by the bank employees while I was evaluating their responses and how they treated potential new customers. Several shops also required you to express displeasure with some information (such as rates) and record the reaction of the person you are speaking with.

The bank I was a shopper for was very specific regarding their requirements. I had to wear a watch and time how long it took someone to greet me upon entering the bank. I also had to comment on who was present when I entered the branch and available to assist me at that time. A specific person was supposed to greet me and, if not, someone else was expected to substitute for that person temporarily while asking me to wait for the information I was trying to obtain. The bank demanded a great deal from their employees and, in most cases, was not disappointed. I was very surprised at how quickly I was greeted when entering the bank lobby. Only twice was I disappointed in the service I received. This was out of approximately 25 visits and shows that the service provided by this organization is exceptional. I was very impressed with how they treated their customers and would eventually like to bring my financial business to this organization.

Posted by juliusp at 10:56 AM | Comments (0)

March 24, 2008

Buying a New Car can be a pain

If you are in the market for a new car, you will probably also be in the market for a new car loan. New cars have become so expensive that few people can afford to purchase them for cash. Financing is the common way to buy a new auto and can be arranged in several ways.

The first thing you must do is shop around for a car that meets your needs. If you are a single person or a married couple, you probably do not need a very large vehicle. A family, on the other hand, will probably be looking at trucks and vans. These are most popular with the people who have several children and spend much of their time driving them and their friends to soccer matches, school functions, etc.

Sometimes the dealerships have loans available at very competitive rates. If you happen to come across this type of offer, it is certainly worth investigating. If not, consider your local bank and also your insurance company. It is imperative that you shop for rates before deciding how you will purchase your new car.

Your credit rating with have a strong influence on the rates you are offered. Car dealerships offering great rates always include a disclaimer stating that these rates are based on a very good credit rating. Anything less and the rate will skyrocket. The same is true of your bank. They will offer to finance your new car as they have very little to lose. The car guarantees the loan so, if necessary, they can always repossess the car and recoup the money they have advanced to you on your car purchase. It would certainly be ugly to have them repossess your car but, if you do not make your payments, this will happen. Therefore, it is important to understand that you should not purchase a car and take out an auto loan if you cannot make the payments. Also, please remember that if your credit rating is poor, the rate charged to you will be considerably higher than to someone with a much better credit rating.

When establishing the loan, you will be asked to make a down payment on the car. They will expect a reasonable percentage of the purchase price as the financial people realize that a car depreciates rapidly the minute you drive it out of the showroom. It is possible that the car will actually depreciate several thousand dollars as soon as you take ownership. The down payment insures that the financial institution making the loan is still covered for the entire depreciated amount as soon as you drive out of the showroom.
They have done this by requiring that you have your auto insurance policy endorsed so that they will receive their money directly from your insurance company.

Some people choose to rent a car for a specific period of time rather than purchase a new one. In theory, this sounds like a good idea but the reality is that there are several drawbacks to car rental. You rent a car for a specific period of time, often three years. When you rent this automobile you are required to put down a predetermined sum of money. This is usually a large amount which is not refundable to you. You are then required to carry specific insurance coverage on this vehicle and, of course, to make the monthly payments previously agreed upon. At this time you gain possession of the new car.


At the end of the vehicle lease period the dealership reviews your car and determines your extra charges. A specific amount of mileage is stated in the lease. If you exceed this amount you are obligated to pay a previously stated sum per additional mile. This can sometimes be so expensive that you cannot afford to turn in the car. Also, if you have any type of damage, this will be charged against you at an exorbitant rate, again, possibly preventing you from returning the car to the dealership.

All leases have a buyout number attached when the lease expires. This number, coupled with your initial down payment and your monthly payments, generally is extremely profitable for the dealership and very expensive for you. You, however, only have two choices. Turn in the vehicle and pay whatever fees are assessed by the dealership, or continue to own the car at the buyout price.

Remember that if you pay the fees and turn the vehicle into the dealership after three years, you no longer have a car to drive. You now have to produce a down payment and take out a car loan with a bank or finance company or provide another down payment to the car dealership for a new rental. While it is true that the rental arrangement will always provide you with a new vehicle to drive. It could be considerably more expensive in the long run. You need to think long and hard as to how you want to purchase and finance your cars so that you choose what is best for you, your family, and your budget.

Posted by juliusp at 10:50 AM | Comments (0)