Are corporations desperate for cash?

[notadmblnd]

Has anyone noticed that the bill collectors are calling before you're really behind yet? I'm a couple of weeks late on paying my cable bill. In fact, I haven't received this months bill yet. Yesterday I got a call telling me they are going to disconnect next week if I don't have it paid.

The last couple of years I've had to juggle things like electric, heat and phone. Or sometimes I'll send them a couple of hundred each. In the past I've never had people call me for being less than one month behind. For example my gas bill last month was 250 so I sent them 200 and caught my phone up. They (gas company) called me on a Sunday for the other 50 dollars.

All in all this has happened with gas, cable and telephone. What's up? Am I a bad girl beause utilities sky rocket in the winter and I try to give every body something, instead of not paying at all? Or are these companies just more desperate for cash?

[SheilaT]

1. For several years now

corporations have been quick to threaten disconnect of some such if you're as much as two weeks behind on bills. However, I have rarely, if ever, gotten phone calls, just additional notices by mail. At least ten years ago I actually had someone from the cable company simply show up at my front door to collect.

I have no idea if it's a cash flow problem with the corporations.

[Statistical]

2. They are desperate for cash.

They also know that as bills go up and incomes decline somebody won't be paid. Maybe it is the car payment, house payment, electric payment, etc.

Each company wants to make sure if you don't pay somebody it is not them.

They can't afford to float accounts receivable right now.
Many are sitting on a lot in debt and w/ credit markets very expensive (MO recently sold some debt. Excellent credit rating. A year ago they would have locked in 5% easy. They had to bump it up to 7.8% to get funding) they can't afford to now save cash to pay down debt.

[Subdivisions]

3. That could be part of it...

The other part is just that, simply, they have the power over you. Chances are whether it's electricity or cable TV, there's probably no competing source in any given area for these services. They can demand payment because they know you'll do what you have to do avoid disruption and there's rarely a fear that you'll go elsewhere.

They have us by the balls...beggin' yer pard'n ma'am.

[gristy]

4. depends on the corporation

Regarding utilities, I imagine the number of customers who are late with their payments has increased. Maybe their data shows that customers who are late are increasingly likely to never pay.

[Blue Meany]

8. Here in Maine utlities cannot legally turn off a customer's

power during the winter, so come Spring they send out threatening letters to those who are behind on their payments. Last year they said this went to more than 40% of customers.

[notadmblnd]

9. it used to be that way here in Michigan. I've been told the law has changed

[KharmaTrain]

5. It's Called A Cash Crunch

I just had a confrontation with a cable company that was threatening to cut service to a home of disabled people. They fell behind 90 days and the hounds came out...they didn't care who they're dealing with (it's all an account number) and their take home pay rides on how many "deliquents" they can get to pay up.

Right now there's no credit...no money companies can borrow to float shortfalls...thus every penny collected is important. These companies, like many others, are on a short leash these days as they have their rising expenses and falling revenues that are making collections even more important.

While gas and electric are regulated here...they can't just cut off service (especially when its -10 below outside), phone and cable are still luxuaries (despite our inner needs) and are so deregulated there's little redress for them other than trying to shame them or try to make a deal.

I truly feel for you...even though I have long settled my debts and the only calls I get are for solicitation, I am still loathe to pick up a phone; especially when I hear a strange voice mispronouncing my name.

Here's hoping your expenses don't pull you under...it's a tough time for most of us out here, but hopefully in the end, we'll end this era of greed and put a value back in quality, service and respect.

Cheers...

[notadmblnd]

7. The woman ended up hanging up on me

I told her that I wasn't even two weeks behind and hadn't even received this months bill. After i told her that I couldn't pay till the 28th, she said "you can call 1-888- Comcast and maybe ask or work something out with them?" I replied that if she didn't have the authority to make arrangements with me for the bill, then why was she calling me? I said, "If comcast is so desperate for cash then why are they paying for this exercise in time wasting?" She then hung up.

[HughBeaumont]

6. I don't see how.

The highest tax rate is the lowest it's been in 75 years. You can't blame labor cost because in real dollars, the average American makes LESS than they did in 1979 while working more hours. You can't blame manufacturing because all of the plants are overseas; that whole "cut costs at all costs" model which benefits us all, right?

Frankly, corporations with all of the coddling, loans, breaks and perks they've received in the past 28 years should be AWASH in cash. So what gives? Why the desperation? Where is all that money GOING, HMMMMMMMMMMMMMMM?

Put it this way . . . what would happen if you were employed somewhere and even $100 of company money went missing on your watch? You'd get the third degree and possibly arrested.

Kind of hard to believe the people who insist that the wealthy DO follow the same rules as we do.

[melm00se]

10. as a former credit counselor

I would say:

set up balanced billing on all your utilities
cut back to minimum on the cable (and if already there - cut the cord completely - $50 for a digital converter)