In recent years, banks have
sharply raised interest rates
00:00:02.12\00:00:04.76
and penalty fees on credit
cards. What's behind it all
00:00:04.79\00:00:08.39
and who bears the brunt of this,
and then, there are issues with
00:00:08.42\00:00:12.21
filing claims with insurance
companies.. you've paid into a
00:00:12.25\00:00:15.57
plan and you don't know
how to file your claim...
00:00:15.60\00:00:17.85
Stay tuned to Urban Report
and find out what you can do
00:00:17.89\00:00:21.54
about it... music playing...
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Hello, and
welcome to Urban Report...
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I've been hearing more
and more about consumers
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that have had their
interest rates heightened for no
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apparent reason.
The other day while
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talking with 3abn's founder,
Danny Shelton and my co-host,
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I found out that it happened
to him, so I invited him to
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share his story with our
viewers Thanks so much Danny...
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Dr. Lewis, it's a privilege
to be here with you today...
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Thanks, I am glad to have you.
Well, it's very interesting,
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and we were just happened
to be on the conversation
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talking about this and I said,
you know, probably most of our
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viewers have had some of the
same experiences that we've had
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Yes... And so,
in order to protect
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certain companies or, you
know, to get names out there
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to get distracted from
the issue, the issue is...
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that it seems like... and
since we are dealing with the
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urban audience, that sometimes,
that people... that seems
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like they like
they are targeted...
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Yes... and this could be,
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it is not necessarily a race
thing... it is more of a class
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and your economic
status to where you are...
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but I think it's interesting
that credit cards, now,
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for an instance, I am going to
give you a personal story okay..
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Okay, sure... For
instance, on a credit card,
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I had applied for a
loan, I am not sure what it was
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maybe like a truck loan or
something... and when I got
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the interest rate, my credit
rating, I thought, was pretty
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good... I got the interest rate,
it was up considerably higher
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than I thought it should be...
and so I said, "Well, why is
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this interest rate up...
because I've had this company
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for years, you know, and I would
deal, when I get a new truck or
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new vehicle, sometimes,
go through them, why is the
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interest rate up?"
What they told me was...
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"Well, we've started this thing
where we look through all of
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your credit and we see...
there was a medical bill...
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that by mistake hadn't
been"... it was supposed to be
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an insurance that paid the
hospital, it didn't get paid on
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time so because of
that... this credit card company
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or actually the finance company,
was raising my interest rates...
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and I said, "Now, wait a minute,
this doesn't make any sense...
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I've had good credit
with you for so many years...
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how can you raise my
rates because of something that
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happened over here?"
Well that kind of opened up
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a whole new world...
So, now, a couple of months
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later, I get my
bill... I have a credit card,
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so I looked at the bill
and just happened to look down,
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and I had a 7 point...
this was a couple of years ago,
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7.99%... it was a fair price
at that time... the going rate,
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I should say, and so I looked
at the bill, Yvonne, and it
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said 14.99%...
They had doubled...
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They had almost
doubled my interest rate...
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So I said, "Well, I don't
think I missed a payment"...
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I understand, you know,
if you miss a payment...
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that what can happen to
you, if you miss a payment,
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well then, everything goes
out.. you know, they offer you
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zero percentage for six months
and they offer you all these
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things to get us
there, then when we are there,
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if we break one of those little
rules... so it's important
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that you read the fine print...
though that's hard to do...
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with page after
page... but I understood this,
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pay my bill on time-keep 7.99%.
This credit card... I'd had for
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twenty years with this
company 14.99%... so I called...
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and I get a man... he says
his name was John and I can't
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doubt it... I know it sounded
like he was from, you know,
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different areas of the world,
and that's kind of normal,
00:04:03.26\00:04:06.53
now-a-days to get it... Yeah...
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But he called himself John...
I said, "John, I want to talk
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to you about my interest rate"..
"Yes, what can I do for you?"
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I said, well it
jumped from 7.99% to 14.99%
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but I've paid my bill and I've
been on time, there's no reason
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why it should have jumped
up. "Let me check," he said,
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"Let me put you on
hold Mr. Shelton," so he did
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a few seconds later he
came back and he said that,
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"Oh, yes, I see it...
it's 14.99%," he said,
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"now do you have a
problem with it?" and I said,
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"Well, yes, I have a
problem with that... that's why
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that's why I am calling you"
and he said "Well what is it
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about this. " I said,
"The interest rate was 7.99%
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now it's 14.99%... I've paid my
bill, I've kept my part of the
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bargain, why did you do
this overnight without even
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letting me know?" I mean
other than it just showing up on
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my bill... 'cause I don't
always go down and check it...
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Right... You know
what he said it me?
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"Well, Mr. Shelton, I am
sure you've heard of the big
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bailout" and I said, "Yeah,"
and he said, "Well, that's it. "
00:05:04.00\00:05:08.41
Then I said, "Why?" He
said, "Well, because of the
00:05:08.44\00:05:11.40
big bailout, we've had
to raise our credit card...
00:05:11.43\00:05:14.70
our interest rates up to 14.99%"
and I said, "Well, maybe I
00:05:14.73\00:05:18.61
didn't understand the bailout,
I thought we the consumer,
00:05:18.64\00:05:22.49
we the people bailed out you all
but now, I realize that you are
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just a worker there and I
am not blaming you for what's
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going on but right now there's
a little frustration in here
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I thought we bailed you out,
and so therefore, the Government
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bailed you out... but
we are bailing that out..
00:05:36.27\00:05:38.71
the grassroots we
are paying for it all"...
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Right... "So why
does that give you a
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right to raise and break
our contract... our agreement...
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and raise the interest rates?"
So I said to him, "You know,
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based on that, I think what
we should do is, I am just going
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to pay you 1.99% now"... and
he said, "Oh, you can't do that"
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and I said, "Well, why not?"
"Well because," and I said,
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"What?" "because we have a
contract?" "Oh yeah, you have
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an agreement," he said,
"with us" and I said, "Exactly,
00:06:01.30\00:06:04.39
and you had an agreement
with me, but now, because of the
00:06:04.43\00:06:07.35
bailout, you can raise
the interest rates to 14.99%."
00:06:07.39\00:06:10.24
I said, "You know, this is
not fair, what you are doing is
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not right. " and you
know what he said to me?
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What?... "Oh, well
you are not happy with
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this 14.99%," again he said
that to me... biting my tongue,
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and I said, "No, that's why
I called you, I am not happy
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about it at all. " "Oh,
would you like me to take
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it back to the 7.99%?"
and I said, "Absolutely,"
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"That's fine Mr. Shelton,
we'll bring it down to the 7.99%
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You feel better?"
I said, "Absolutely,"
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he said, "but I do need to
let you know, by the end of
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this year, when this year
expires, in like four more
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months, that we will be...
this company," I almost said the
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name of it, "will be
dropping you and closing down
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your account" and I said,
"If you read on the account it
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says, I've had an account
with you since 1989," he said,
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"Yeah, I see that,"
and I said, "I've charged
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thousands and thousands
of dollars and you all made a
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great deal of interest
on me right?" and he said,
00:07:02.24\00:07:04.90
"Well, probably so," and I said
"So why would you shut me down?
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just totally cut off
my credit card from me?"
00:07:08.87\00:07:11.81
After 20 years...
after 20 years of paying well
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and having, you know, the
card with them and keeping it
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maintained and he said,
"Well, because you don't want to
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do the 14.99% so if you don't
do that, when the end of the
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year comes, we are just going
to shut your credit card down. "
00:07:23.00\00:07:25.83
and I said, "You know what?
you won't even have to wait
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that long," I said, "we won't
have to wait with it because
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I am going to close you down. "
I said, "I am going to pay this
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off and that way, we'll be
through" and so that's what
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happened, we paid it off.
But it's amazing, what happens,
00:07:35.71\00:07:39.41
and you know, you wonder,
how can these companies get
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away with all of
this? Exactly, exactly...
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I hope you got an expert on
today because I've got all these
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frustrations and I got to have
somebody help me with this...
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We do, we do, we have
Cordell Thomas who is our
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financial literacy expert, he's
on Skype. Cordell, join us now..
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Hey Cordell... Hi, how are you?
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Hi Cordell... It's
good to see you all...
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Cordell, tell us about
this whole credit card deal...
00:08:01.84\00:08:05.17
you heard Danny's experience
and his experience really isn't
00:08:05.20\00:08:08.56
unique... I mean there are
so many other people... we were
00:08:08.60\00:08:11.92
talking to Pastor John Lomacang
the other night, we were telling
00:08:11.96\00:08:15.20
him about this and he
said, "That same thing happened
00:08:15.23\00:08:18.56
to me. " He said the exact same
thing... "I called the company,
00:08:18.59\00:08:21.63
they'd upped me double my
interest because of the big
00:08:21.67\00:08:25.01
bailout... " I
mean, it's like, what do,
00:08:25.04\00:08:27.83
what recourse do we
have as consumers when this
00:08:27.86\00:08:30.65
happens?... I think
a couple of things we
00:08:30.68\00:08:34.47
should talk about right
now... One specifically is what
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Danny Shelton actually did
is he questioned the Company...
00:08:39.23\00:08:43.97
Ahh... In
questioning the Company,
00:08:44.00\00:08:46.30
he was able to take on the
responsibility of asking the
00:08:46.34\00:08:50.18
questions that needed to
be asked... um.. what the
00:08:50.22\00:08:53.02
Credit Card Act of
2009 actually did for us was
00:08:53.05\00:08:55.82
supposed to have actually
kept the level of increases
00:08:55.86\00:08:59.44
from APR standpoint that
we would have expected...
00:08:59.48\00:09:03.03
I am sorry, my
earpiece is falling out... ah...
00:09:03.06\00:09:06.46
but the context is...
it should have capped it...
00:09:06.49\00:09:09.39
it didn't do that...
Consumer advocate groups have
00:09:09.42\00:09:12.24
come out saying that...
that should have been the issue
00:09:12.28\00:09:14.76
here with this Credit Card
Act.. that was not the case...
00:09:14.80\00:09:17.88
as a matter of fact, we take
a look at... after this Act went
00:09:17.91\00:09:21.60
into effect in 2010, we still
see the average interest rates
00:09:21.64\00:09:25.30
going up slightly on
credit cards... so, for example,
00:09:25.33\00:09:29.01
um... the fine print is key for
most individuals and I recommend
00:09:29.05\00:09:34.32
looking through what you
are getting involved in...
00:09:34.36\00:09:36.51
Number two is... Do
what Danny Shelton did...
00:09:36.54\00:09:38.55
that Credit Card Act basically
said that if your interest rate
00:09:38.58\00:09:42.98
spikes, you have the right
to contact your creditor and ask
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them to put it back to
what it was supposed to be...
00:09:47.42\00:09:49.59
and typically if you make your
payments on an on-going basis,
00:09:49.62\00:09:52.83
for at least 6 months,
they should be able to do that
00:09:52.86\00:09:55.45
without any kind
of ramifications...
00:09:55.48\00:09:57.82
What he was playing
with... and many of the times...
00:09:57.85\00:10:01.42
these credit card companies,
these banks, are in business
00:10:01.45\00:10:05.64
to make money... and
a lot of people don't
00:10:05.67\00:10:06.99
realize or think about
it from that perspecitve,
00:10:07.02\00:10:09.24
but the case with credit
is... I am paying for the use of
00:10:09.28\00:10:14.33
your money for a short amount of
time... and in many situations,
00:10:14.37\00:10:18.78
ah... they use that as an out...
and now, that if you miss a
00:10:18.81\00:10:23.19
payment, not after 30
days but 60 days is what the
00:10:23.22\00:10:26.54
Credit Card Act is
pretty much stipulating is...
00:10:26.58\00:10:29.87
you miss a payment after
60 days, they can spike that
00:10:29.90\00:10:31.94
interest rate and they are
not capped at what they can
00:10:31.97\00:10:33.97
spike it to... Okay,
so, I am sorry Cordell,
00:10:34.01\00:10:36.90
let me just ask you,
so, they can do it when your
00:10:36.94\00:10:40.64
payment is late, right,
after, but after 60 days,
00:10:40.68\00:10:44.35
Yes, it's been
extended to 60 days...
00:10:44.38\00:10:46.71
So the key then is, not just to,
we have to read the fine print,
00:10:46.74\00:10:51.41
we have to do as Danny
did, call and question them,
00:10:51.44\00:10:54.43
but you also have to
make your payments on time...
00:10:54.46\00:10:57.41
now, Danny was
making his payments on time,
00:10:57.45\00:10:59.30
so his interest
rate sky rocketed...
00:10:59.34\00:11:03.20
but you're saying, you also...
those three things have to be
00:11:03.23\00:11:07.11
in place as well...
correct me, okay, okay, go ahead
00:11:07.14\00:11:10.38
I'm sorry, I just wanted
to make sure I was getting...
00:11:10.41\00:11:13.70
I wanted to summarize what
you were saying, as you went.
00:11:13.74\00:11:16.51
It's really key to what
Mr. Shelton has actually said
00:11:16.54\00:11:19.25
to this bailout issue
of the 2006, 2007, 2008,
00:11:19.28\00:11:23.37
the banking crisis has
everything to do with what you
00:11:23.41\00:11:26.83
had asked me to talk
about actually in Securitization
00:11:26.86\00:11:29.02
- these bonds, this financial
practice that involves pooling
00:11:29.06\00:11:33.99
the various types of
resources. This all came by this
00:11:34.03\00:11:38.93
contractual mortgage debt
that was sold to investors...
00:11:38.97\00:11:42.38
and these investors bought
this, um.. and... and... it's a
00:11:42.42\00:11:45.80
certificate of debt, a security
is a certificate of debt
00:11:45.83\00:11:48.69
Corporate Security Certificate
which basically says,
00:11:48.73\00:11:53.04
that these investors,
are investing in this type of
00:11:53.08\00:11:56.75
lending... Mortgage Lending...
in that case, it was sub-prime
00:11:56.78\00:11:59.60
lending... and this bailout
came because these investors
00:11:59.63\00:12:04.70
bought into this sub-prime
lending mortgage debacle
00:12:04.73\00:12:07.87
and actually hedged that it
would fail... they got paid...
00:12:07.91\00:12:12.64
and we had this foreclosure
crisis that required a bailout,
00:12:12.67\00:12:16.78
and now, everyone is paying
for it because a lot of banks
00:12:16.82\00:12:20.39
went out of business
during that timeframe...
00:12:20.42\00:12:23.72
between 2008 and 2010,
so now, these same banks,
00:12:23.75\00:12:26.98
because they had been weakened
by the recession, are coming
00:12:27.01\00:12:31.09
back and finding different
loopholes... it is key, now,
00:12:31.13\00:12:35.17
I might ask a
question of Mr. Shelton that,
00:12:35.20\00:12:37.22
was this a business account
or was it a personal account...
00:12:37.26\00:12:41.46
credit account? It
was a personal account...
00:12:41.49\00:12:44.71
Okay, now there are other
things to note when you look at
00:12:44.74\00:12:51.59
the different types of accounts,
because The Credit Card Act,
00:12:51.63\00:12:54.30
actually protects those that
have these personal accounts...
00:12:54.33\00:12:56.97
whatever that protection is...
because they can still write,
00:12:57.00\00:13:00.31
in the small print, specific
loopholes that can get through
00:13:00.34\00:13:04.14
but you are going to find also,
that banks are now investing
00:13:04.18\00:13:09.07
their efforts into a riskier
market of individuals that don't
00:13:09.11\00:13:13.31
necessarily have the credit that
Mr. Shelton may have had because
00:13:13.34\00:13:17.50
they want to increase their
share... going after a riskier
00:13:17.54\00:13:21.30
market that they would
hope would increase their
00:13:21.33\00:13:26.56
market share, but remember, the
same thing that happened back in
00:13:26.59\00:13:29.92
2008 with that recession-
that crisis was because of
00:13:29.96\00:13:33.34
sub-prime lending,
the same thing is going on
00:13:33.38\00:13:35.90
right now in credit card lending
and it's going to sub-prime
00:13:35.94\00:13:39.44
type of candidates because
they are going after Share...
00:13:39.47\00:13:42.94
and believe me, with
securitization happening
00:13:42.97\00:13:46.31
with that same thing, they
are taking the pooling of this
00:13:46.35\00:13:49.69
various credit card
assets and selling them as bonds
00:13:49.72\00:13:54.57
to these investors
they are hedging... again...
00:13:54.60\00:13:58.24
that these credit card owners,
or these credit cards that they
00:13:58.28\00:14:06.60
get this credit...
credit from these banks...
00:14:06.63\00:14:08.53
will not pay back on that debt..
and of course, the same thing
00:14:08.56\00:14:12.89
we see it happening back in
2008, I think, is a precursor
00:14:12.92\00:14:17.18
to what may happen in
the near future with the same
00:14:17.22\00:14:20.02
issue in credit... And I
was reading that, you know
00:14:20.06\00:14:24.10
that as of September,
revolving debt has topped
00:14:24.14\00:14:27.21
over 970 billion dollars
and the average household has
00:14:27.25\00:14:32.27
over 10,678 dollars worth of
debt... ah.. credit card debt...
00:14:32.30\00:14:37.57
so there are a lot of folks
that are using credit cards
00:14:37.61\00:14:41.45
and they really can't afford it.
In fact, they are using their
00:14:41.48\00:14:44.90
credit cards and not
paying their mortgages because
00:14:44.93\00:14:47.58
they are using their credit
cards just to stay afloat.
00:14:47.61\00:14:50.22
So we have a really
critical economic situation and
00:14:50.26\00:14:54.70
I hear what you are saying
Cordell, it's actually, many of
00:14:54.74\00:14:57.99
these banks are preying
upon the poor, in a sense,
00:14:58.03\00:15:00.82
they are really banking,
so to speak, on them not being
00:15:00.86\00:15:03.97
able to pay... and then, as soon
as they don't pay, the penalties
00:15:04.00\00:15:08.46
go up, the interest rates
go up, the penalties go up,
00:15:08.50\00:15:12.94
and who suffers? So, what is
the main key to avoiding this
00:15:12.97\00:15:19.43
kind of deal Cordell?
How would you summarize this?
00:15:19.47\00:15:22.57
What is the key to avoiding
this hike in interest rates...
00:15:22.61\00:15:26.70
and this preying upon the poor?
Two things, be as Mr. Shelton is
00:15:26.73\00:15:35.91
staying in touch with... and
being on top of your finances,
00:15:35.94\00:15:39.33
Number two, have a budget...
understand where your money is
00:15:39.36\00:15:42.72
coming from... understand
where your money is going...
00:15:42.75\00:15:46.33
understand that, any type
of debt that you take on is a
00:15:46.36\00:15:50.32
cost to that debt... and
these banks are business owners
00:15:50.35\00:15:54.24
that are looking to make profits
that's why you see the increase
00:15:54.28\00:15:58.89
in the bounced check
fees... the increase in so many
00:15:58.92\00:16:02.43
different fees that are
available now that the banks
00:16:02.47\00:16:05.91
are using to make up for losses
they had several years back.
00:16:05.95\00:16:10.41
Those are the two
basic issues and I would say,
00:16:10.44\00:16:13.20
number three, I
would add a third one is...
00:16:13.23\00:16:15.96
avoid debt... if you can save,
get into the habit of saving...
00:16:15.99\00:16:20.35
and, of course, you
know, as a business owner,
00:16:20.39\00:16:23.53
as Mr. Shelton is, you are going
to use credit and you can choose
00:16:23.57\00:16:26.36
you can pick and choose
what type of organizations you
00:16:26.39\00:16:29.77
go after to access credit,
but for the majority of us,
00:16:29.81\00:16:33.44
and for myself, I
would... I use American Express
00:16:33.47\00:16:36.26
because I know I got to pay that
off at the end of the month...
00:16:36.30\00:16:39.06
I use it for the use I need it
for and then I try to pay it off
00:16:39.09\00:16:42.80
as quickly as I possibly
can... because you have to pay
00:16:42.83\00:16:44.88
the complete debt... there are
several other issues that come
00:16:44.92\00:16:48.30
into play when you are talking
about credit, and we can go into
00:16:48.33\00:16:51.68
those if you would like
to... but the major issue is...
00:16:51.71\00:16:56.61
have a budget, stay out of
debt, and if you do incur debt,
00:16:56.64\00:17:01.51
pay it off as
quickly as possible...
00:17:01.54\00:17:03.16
Great, now that's great.
Thank you. Well, we also have
00:17:03.20\00:17:07.01
another issue, and that is,
when you file an insurance claim
00:17:07.04\00:17:11.81
sometimes, well, sometimes
something happens to you...
00:17:11.85\00:17:14.47
and you don't even know what
to do, and again, see, look,
00:17:14.50\00:17:18.75
you are just a wealth of
stories here... because you were
00:17:18.79\00:17:22.42
sharing this with us,
the other day, what happened
00:17:22.46\00:17:25.58
to you when filing
an insurance claim?...
00:17:25.61\00:17:28.66
When you live to be as old as me
you'll have lots of experiences
00:17:28.69\00:17:31.35
that you can share...
... 1982, my wife, Kay,
00:17:31.39\00:17:36.08
my daughter, Melody's mother...
they were going into town
00:17:36.11\00:17:39.84
from our house, about two
blocks and was involved in an
00:17:39.88\00:17:42.23
automobile accident, and, and,
Kay was killed in that accident,
00:17:42.27\00:17:46.54
and I didn't know what to do,
we had a van... and it was our
00:17:46.57\00:17:49.50
main driving vehicle and
the van was totaled, and so,
00:17:49.53\00:17:52.51
in the same day, of course,
you lose... I lost my wife,
00:17:52.54\00:17:55.75
my daughter was thrown through
the windshield, broken arm,
00:17:55.78\00:17:58.12
cuts and bruises, and I had to
be with her, go to the hospital,
00:17:58.15\00:18:02.46
take care of funeral
arrangements, you are doing all
00:18:02.49\00:18:05.25
of these things... and I
had insurance with my insurance
00:18:05.29\00:18:07.97
company, so, within a day or two
I said, "Well, I need a vehicle,
00:18:08.01\00:18:11.94
so I've got to go to my
insurance company, so they'll
00:18:11.98\00:18:14.96
pay me"... because as far as I
knew, I had a contract with them
00:18:15.00\00:18:17.99
that if you total
your car, you do whatever,
00:18:18.02\00:18:20.02
we'll replace
it... we'll do whatever,
00:18:20.06\00:18:21.74
so, I go to my insurance
agent, and he says to me,
00:18:21.77\00:18:25.72
"Well, you know, it
wasn't really your wife's fault,
00:18:25.76\00:18:29.68
because a young guy ran a
stop sign and actually hit her
00:18:29.71\00:18:34.25
and killed her... and he
has State Farm Insurance down in
00:18:34.28\00:18:38.76
in his-out of
Marion, Illinois, State Farm,
00:18:38.79\00:18:43.96
so why don't you go talk to them
00:18:43.99\00:18:46.11
and let them know what
predicament you are in...
00:18:46.14\00:18:48.29
and that, you know, they
need to pay you for this vehicle
00:18:48.33\00:18:52.59
because that was his
fault... so, I mean, you know,
00:18:52.62\00:18:55.59
maybe, had I really had
time to think of this Cordell,
00:18:55.62\00:18:58.52
and look this situation over,
you know, but I didn't, because
00:18:58.56\00:19:02.40
I am still... all of
this stuff is overwhelming...
00:19:02.43\00:19:05.23
so I drive down to Marion,
I get an appointment with
00:19:05.26\00:19:07.70
the State Farm guy
and he was very nice and
00:19:07.74\00:19:10.41
he said, "Well Danny, if I can
call you Danny," I said, "Sure"
00:19:10.44\00:19:12.98
he said, "I am really, what
can I do for you?" and I said,
00:19:13.02\00:19:15.23
"Well, as you know.. my wife was
killed in an automobile accident
00:19:15.27\00:19:18.26
by someone insured by you,
your company, they ran through
00:19:18.30\00:19:21.98
a stop sign and then she was
killed and so I went to see my
00:19:22.01\00:19:25.37
agent, but he said, that I
need to come and talk to you...
00:19:25.41\00:19:29.23
since it's your person's fault,
that you should pay me because
00:19:29.27\00:19:32.54
I need a vehicle to drive...
I don't have anything to drive
00:19:32.57\00:19:35.81
and he said to me,
"Well, you know, I really
00:19:35.84\00:19:38.02
feel badly... " and he
was a really nice guy...
00:19:38.06\00:19:40.17
"... I really feel badly for
you but, let me ask you a simple
00:19:40.20\00:19:43.79
question... who do you
have insurance with?" and I gave
00:19:43.83\00:19:46.76
him the name of my company...
he said, "Who do you pay your
00:19:46.80\00:19:49.70
premiums to?" and I gave
him the name of my company...
00:19:49.73\00:19:52.76
and he said, "Much as I'd like
to help you... your company has
00:19:52.80\00:19:55.76
agreed to do that, now you
need to go back to your company
00:19:55.80\00:19:58.69
in West Frankfort... you are in
a very, a time of bereavement,
00:19:58.73\00:20:02.24
you don't need to be dealt with
like this, go back and demand
00:20:02.27\00:20:06.36
that they pay you because
you have an agreement that says
00:20:06.40\00:20:09.50
that if this happens,
they'll pay you and you can buy
00:20:09.53\00:20:12.60
another car or replace
it, right?" I said, "Yes,"
00:20:12.64\00:20:16.31
I went back to my
company, very upset, I said,
00:20:16.34\00:20:19.94
"Well, I went down to State Farm
and the guy said, much as he'd
00:20:19.98\00:20:23.00
like to help me, come back
here and you need to pay me. "
00:20:23.03\00:20:26.73
"Oh, well you want me to pay
you, well then, we'll take care
00:20:26.76\00:20:30.42
of your vehicle for you... "
and I was just so amazed by that
00:20:30.46\00:20:33.01
I thought, you know, and here
I went out... he'd sent me...
00:20:33.04\00:20:35.84
in what I call in these terms...
he'd sent me on a wild goose
00:20:35.88\00:20:38.21
chase... you know, because,
you don't know, and I am young,
00:20:38.24\00:20:40.54
I, I, haven't had this
kind of experience before...
00:20:40.57\00:20:43.64
and to me that's just so
unnecessary... and so wrong
00:20:43.67\00:20:46.51
that people would do this,
but these insurance companies
00:20:46.55\00:20:49.57
do not... they do not want
to turn loose of that money...
00:20:49.61\00:20:52.64
even though they agree... if
the shoe is on the other foot
00:20:52.67\00:20:55.12
and you owed the insurance
company, your credit will
00:20:55.16\00:20:57.51
go down the tubes and you
wouldn't not be able to do
00:20:57.55\00:20:59.84
anything... they can owe you
money for long periods of time,
00:20:59.87\00:21:03.05
you even have to sue them
to get what's rightfully yours,
00:21:03.08\00:21:06.22
and nothing happens to
them... there seems to be...
00:21:06.26\00:21:08.71
so you see... I am out on a...
I don't want to go too far here,
00:21:08.75\00:21:12.65
Cordell, but you'd asked me
to share about that... you know,
00:21:12.68\00:21:16.66
I felt like the predicament
that I was in, and that I really
00:21:16.69\00:21:20.63
needed the help right then..
not someone trying to keep their
00:21:20.67\00:21:23.50
money for a few days longer...
Exactly... and over and over,
00:21:23.53\00:21:26.33
I mean, repeatedly I've heard
stories about... how you know...
00:21:26.36\00:21:29.67
you pay your premium
on time and then when it's
00:21:29.70\00:21:31.92
time to file that claim,
you get the run-around or you
00:21:31.95\00:21:35.66
get disqualified,
or... What do we do, Cordell,
00:21:35.69\00:21:38.21
in a situation like that, when
you are trying to file a claim
00:21:38.25\00:21:42.42
an insurance claim, what's
the first thing you really...
00:21:42.46\00:21:45.74
what are the things that you
need to do in considering that?
00:21:45.78\00:21:49.62
There are several things,
.. in this specific issue...
00:21:49.65\00:21:53.45
I'll throw a word out
there... that's indemnify...
00:21:53.49\00:21:56.23
indemnification... it's words
that you see in reference to
00:21:56.27\00:21:59.11
certain insurances... that
is basically telling you...
00:21:59.15\00:22:01.92
it's to make you as whole as
possible... bringing you back
00:22:01.96\00:22:04.39
to a certain sense of wholeness,
there is no way it can be done,
00:22:04.43\00:22:07.65
but monetary...
provision helps us get back
00:22:07.69\00:22:12.45
to... as close as we
can... whether it be home...
00:22:12.49\00:22:17.22
whether it be car,
whether it be life...
00:22:17.26\00:22:19.27
I... you don't know
exactly what to say except
00:22:19.31\00:22:23.57
trying to figure that these
insurance companies would be as
00:22:23.60\00:22:27.38
ethical as they possibly
can be. There are five things
00:22:27.41\00:22:29.76
I'd probably look
at... and I'd... you know...
00:22:29.79\00:22:33.25
evaluate whether or not this
is something that you should
00:22:33.29\00:22:35.90
file a claim on... is it
necessary to file a claim on it?
00:22:35.93\00:22:38.20
In this case, of course, yes...
There are two specific issues
00:22:38.23\00:22:40.81
which is the transportation, and
most importantly, the life...
00:22:40.84\00:22:44.59
ah... and then of course,
number two is... as soon as
00:22:44.62\00:22:47.56
possible... fill out a worksheet
an accident worksheet...
00:22:47.60\00:22:50.69
that you can take with all
the details that include, now,
00:22:50.73\00:22:53.75
witnesses and those types of
things to your insurance company
00:22:53.78\00:22:56.70
and, of course, do exactly
what that insurance company told
00:22:56.74\00:22:59.89
you to do... is to go and
tell your insurance company that
00:22:59.92\00:23:02.65
these things have happened,
the quick police report has been
00:23:02.69\00:23:05.53
written, these things have been
done, your worksheet has been
00:23:05.56\00:23:08.94
filled out... you have witnesses
in place..., we would like
00:23:08.98\00:23:12.32
to get it taken care of and
indemnified or made as whole
00:23:12.36\00:23:16.04
as possible, as quickly as
you possibly can... now, in our
00:23:16.07\00:23:19.72
urban markets we are
finding that there are some
00:23:19.75\00:23:21.94
major issues in reference
to insurance, there is either a
00:23:21.98\00:23:23.79
fear of getting insurance
because... why am I paying
00:23:23.82\00:23:26.84
all these premiums, and, I
don't ever really see the need
00:23:26.87\00:23:30.34
to use it... well
hopefully that's the case...
00:23:30.37\00:23:32.58
we are trying to protect
ourselves against some type of
00:23:32.61\00:23:36.14
major, major, hurt, whether
your house gets destroyed
00:23:36.18\00:23:39.73
or you are in a car accident,
or you lose a loved one...
00:23:39.77\00:23:43.13
many times you see in these
urban areas, people who have
00:23:43.17\00:23:46.57
lost a young one or a wage
earner and they have to have
00:23:46.60\00:23:49.97
car washes and fund raisers
to bury the dead and in some
00:23:50.01\00:23:54.00
situations they don't even,
don't even go and acquire the
00:23:54.04\00:23:57.96
bodies from the morgues because
they don't even have the money
00:23:58.00\00:23:59.85
to take care of any of
those things... you have people
00:23:59.89\00:24:02.72
that just stay there...
the context is, insurance is
00:24:02.76\00:24:05.56
worthwhile, it's a one-trillion-
dollar-a-year business and you
00:24:05.59\00:24:10.72
have many different
things that go on in business...
00:24:10.76\00:24:13.03
that's that big... and you
have many people who may not be
00:24:13.07\00:24:16.10
qualified to deal with these
specific issues or know how
00:24:16.14\00:24:19.14
to work with individuals
in their time of need...
00:24:19.17\00:24:22.74
but the best thing you can do
is have your ducks in a row...
00:24:22.77\00:24:26.60
have your in files place, have
your account numbers and all
00:24:26.64\00:24:29.78
of those things at... at...
in a place that you can access
00:24:29.81\00:24:33.32
them very quickly, in a safe
place, and then know that you
00:24:33.36\00:24:36.84
have the right to
demand this of the insurance,
00:24:36.87\00:24:40.99
insurance companies...
That's good information, hmm,
00:24:41.02\00:24:45.11
hmm, that's really
good information...
00:24:45.14\00:24:47.18
It really is and I appreciate
that so much too, because,
00:24:47.22\00:24:50.58
again, at the time when you
are in a situation like this,
00:24:50.62\00:24:53.85
you need all the help you can
get... now one last thing that I
00:24:53.89\00:24:57.16
did, I dropped that insurance
company right after we got
00:24:57.20\00:25:00.32
settled and I've never been back
to them again... it probably is
00:25:00.36\00:25:03.60
a matter of a principle,
under that scar they left me...
00:25:03.64\00:25:06.04
no matter what they'd say or do,
I am gone.. probably had nothing
00:25:06.08\00:25:10.34
to do with the entire, you
know, the general management
00:25:10.38\00:25:14.06
in the insurance company
but it sure burned me from the
00:25:14.10\00:25:17.37
local area, so I don't know,
you know, what their mode of
00:25:17.40\00:25:21.19
operation is... modus of
operation, but from now on...
00:25:21.23\00:25:24.98
You are not dealing
with them ever again...
00:25:25.01\00:25:27.24
No, I am done... I am
scarred on that one... yeah...
00:25:27.27\00:25:29.76
Well that's understandable
because you were in a
00:25:29.79\00:25:31.88
period of bereavement and they
were taking advantage of that,
00:25:31.92\00:25:35.62
and one of the things that
I liked about what Cordell was
00:25:35.65\00:25:39.29
saying, is that, you know, you
have your information, you go
00:25:39.33\00:25:42.94
there with your information,
and that kind of equips you even
00:25:42.98\00:25:45.96
better because when you are
in that state of mind, you can't
00:25:45.99\00:25:48.94
even think... Right...
00:25:48.97\00:25:50.61
I mean, they had to
be just so difficult...
00:25:50.64\00:25:52.23
So we thank you so much
Cordell, you've been really,
00:25:52.26\00:25:55.97
really helpful and you are
our financial literacy expert
00:25:56.00\00:26:00.02
for Dare to Dream, so we
thank you so much for this info.
00:26:00.06\00:26:04.04
Well, I can tell you
this, I can sit and learn from
00:26:04.07\00:26:07.42
Danny Shelton, I
really appreciate his candor
00:26:07.46\00:26:09.69
and what he is saying in
opening up... these are real
00:26:09.73\00:26:12.23
world perspectives, real life
experiences that we are going
00:26:12.26\00:26:15.14
to deal with, and unless
we are prepared, we'll go
00:26:15.18\00:26:19.04
into life, in the unknown,
that we don't know how to
00:26:19.07\00:26:22.86
really deal with specific
issues that are as important as
00:26:22.90\00:26:26.56
insurance can be in the
life of someone that knows...
00:26:26.59\00:26:28.66
Thank you... Thank you...
00:26:28.70\00:26:30.16
You have any closing
thoughts, Danny, about this?
00:26:30.20\00:26:32.29
Well, I don't, you know,
while I am like everybody else,
00:26:32.33\00:26:35.09
I can get frustrated, but
still, when you are dealing with
00:26:35.13\00:26:37.86
people, you want to deal
in a Christian atmosphere,
00:26:37.89\00:26:40.50
you want to deal in a certain
way, and I still try to do that
00:26:40.54\00:26:43.40
but I think what he is
saying is that we don't have to,
00:26:43.44\00:26:46.41
you know, just sit back and say
"Why is this happening to me,"
00:26:46.45\00:26:50.00
go directly, get the
answers, call the company, yes,
00:26:50.04\00:26:52.98
they'll be on hold, and then
you'll go to this one and...
00:26:53.01\00:26:55.71
I must have walked through
several people, on numerous
00:26:55.75\00:26:58.42
times, I've done that and you
have too, before you get there..
00:26:58.46\00:27:01.33
but if you have patience,
and wait it out long enough,
00:27:01.36\00:27:03.94
you usually can get somewhere
and maybe can get something
00:27:03.97\00:27:06.48
accomplished, but it's kind of
a no-win thing... we just have
00:27:06.52\00:27:09.49
to do the best we can
with what we got to work with,
00:27:09.52\00:27:12.13
and education and knowledge
would help us in how to deal
00:27:12.16\00:27:15.20
with these types of experiences,
Absolutely, thank you so much...
00:27:15.23\00:27:19.89
we really appreciate all that
you do and all that you shared
00:27:19.93\00:27:23.26
with us today... These
experiences are important.
00:27:23.29\00:27:26.16
The Bible says, that we
are to be wise as serpents and
00:27:26.20\00:27:30.14
harmless as doves... so
we really need to take these
00:27:30.17\00:27:33.81
experiences, take this
information that Cordell gave
00:27:33.85\00:27:37.18
and really apply it to
our own lives... you know,
00:27:37.22\00:27:40.49
I think there are a lot of
people that are dealing with,
00:27:40.52\00:27:42.83
the questions about how to
deal with these big companies,
00:27:42.86\00:27:47.68
but it doesn't have to be
daunting, you just have to
00:27:47.71\00:27:50.51
come from an informed place.
We want to thank you for being
00:27:50.54\00:27:55.06
with us and join us
next time on Urban Report...
00:27:55.10\00:27:58.02
We need your prayers, we
need your financial support,
00:27:58.06\00:28:01.40
join us, it wouldn't
be the same without you.
00:28:01.43\00:28:04.27