Rescission - The Blog

Things That Make You Go Ugh! 3 Ways Consumers Can Help Themselves.

ckerr@palfin.com — Mon, 03 Mar 2008 23:54:00 GMT

Charlie Brown would say it every time he would attempt to kick a football he allowed Sally to hold, Ugggghh! As she pulled the football away, and he would go sailing through the air after the whiff, we always shook our heads, “Why, Charlie, why?” Well, in this case, it is actually more UGG®, as in UGG® Australia boots that inspires me to write this article for consumers searching for a mortgage. I know, you are thinking to yourself, “How in the world does UGG® Australia boots have anything to do with mortgages?” Let me explain.

I have always been a believer that the consumer has to bear a certain responsibility for the items or services they choose to purchase. They should arm themselves with as much information and knowledge they can. Not only to make the most fiscally responsible decision for their situation, but also to not be deceived by unscrupulous companies. As they say in Latin, caveat emptor, or let the buyer beware. However, where does consumer responsibility end and corporate accountability begin?

My sister started researching last week on the Internet for a deal on UGG® boots. She happened upon a website in Australia, named Snug Australia. The company, as described on their website, is a “provider of genuine, Australian made, premium quality, ugg boots and sheepskin footwear.” After comparing prices, she decided on a classic tall, black pair of boots. Including the shipping, the final price was $160. After much anticipation, they arrived today. Clues they may not be the authentic UGG® boots she had hoped:

Packaged in a bag, not a box.
There was only 1 label, and it did not have the registered trademark affixed.
It seems they glued together 2 Dr. Scholl’s® gel inserts, to make the actual soles of the boot.
The fur inside the boots looked more like the synthetic material you may find in the glove box of your car than on any actual, living animal.

So what happened you ask? Upon further research of the product, we found out the following:

UGG® Australia boots are a product made by Deckers Outdoor Corp and are not made in Australia at all, but in China.
UGG® is not copywritten in Australia, after an international copyright lawsuit filed by Deckers Outdoor Corp failed. In Australia, a “genuine ugg boot” is a description for any type of sheepskin and fleece, manufactured footwear.
The only thing even close about the boots received and the actual UGG® boots is they did spell the word UGG® correctly.

Now, this is not to say that $160 is not a significant amount of money, it is. However, add 000 to the end of that amount when attaining a mortgage and I can only imagine some the words you may choose to express your frustration. So how do you try to prevent acquiring a mortgage, or any product, you do not really want? Here are three suggestions to assist you.

1. Always know the product.

It doesn’t matter if everyone on your block, at work and in your family signed on for an ARM, it does not mean that mortgage is the best choice for you. Do you know what ARM stands for? Do you know what a margin is or how it will affect your interest rate? Do you know what an index is and which one your loan is tied to? If you do not know the answers, do not sign anything until you do. Conduct research on the Internet. Ask friends and family. Ask various professionals in the industry. Do not only listen to the advice of the first person you talked to on the phone. If you do not know what you are getting yourself into, you do not stand much of a chance if things go bad.

2. Obtain a minimum of 3 separate quotes.

This should be done for everything you do, however, obtain a minimum of three separate quotes for your mortgage. One from the bank, one from a mortgage broker and one from the Internet. I understand. They are a friend of yours, a family member or, “just seems like a nice guy.” You feel you are wasting their time. You don’t want them to think you don’t trust them. There are a number of reasons you may not want to shop them around. Look, you will be spending hundreds-of-thousand of dollars when this process is all said and done, why shouldn’t you receive the best deal. The more information you have, the more power you have to negotiate the deal that is right for you.

3. Question Everything.

As cynical as this may sound, you really need to approach a transaction as though someone doesn’t know what they are talking about, or even worse, trying to pull the wool over your eyes. (Sheepskin, wool? Sorry.) You are not the professional. You did not go to classes to understand the mortgage process. You do not take continuing education classes to learn any recent changes or additions in the legislation and programs for real estate. So, when people are explaining something to you and you do not understand, stop shaking your head up and down in agreement as though you do. Ask questions. What is an ARM? What is PMI? Will you be making your fee upfront or in YSP? What color pen will we be signing the documents with? It doesn’t matter how insignificant you feel the question may be, ask it. That is why they are paid. To assist you.

It doesn’t matter if it a pair of boots, a stick of gum or the mortgage for your property. I have seen people in the grocery store, laboring to locate that perfect 39-cent tomato as if it were the Holy Grail. The same effort should be exerted finding the perfect mortgage. You need to research, ask questions, negotiate and equip yourself with as much leverage as you can with everything you do. As they say, “Even the best laid plans of mice and men often go awry.” Just ask Charlie Brown.

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ckerr@palfin.com — Fri, 07 Dec 2007 21:13:00 GMT

I understand the necessity to become more technologically savvy. I understand that a great deal of people are extremely busy, multi-tasking, blogging, texting, emailing, etc. However, what has happened to real customer service? Where have all the real people gone? I cannot tell you how aggravating it is now to try and speak with an actual person, or at least one that even knows what the company does. With all of the advances in technology we have, the most important aspect of a transaction has been lost. Human contact.

How many more phone calls do I really need to make in order to speak with someone? Please press one if you agree. Please press two if you disagree. Please press three if you would like to give an opinion in the general mailbox that will never be returned. Please press four if you would like to leave a message in the mailbox of a department you do not need. Or, please press five to return to option three.

Even better are the systems that make you say the name of the department to trick you into believing you are actually talking to someone. If you agree, please say, “agree”. If you disagree, please say, “disagree”. If you would like to leave a message that will never be returned, Please say, “operator”.

When I do actually reach someone, usually by hitting a variety of different buttons I couldn’t repeat again, they have no idea with whom I should speak or any clue who I may be looking for. Here are a few tips to increase your customer service points, since most websites boast about the importance of it to their customers.

1) If you really cannot answer the phone, call back.

Let’s pretend for a moment you are on the phone every moment of the day. At the very least, designate times that you will return calls and indicate that time in your voicemail. These are customers, or clients after all, and deserve to be treated as though you may actually care.

2) Have an email signature.

Next to not being able to reach an actual person at the company, there is nothing quite as frustrating as receiving an email without a signature.

“ Please contact me at your earliest convenience to discuss you transaction. We are able to fulfill you requirements as you have requested and would like to discuss delivery.

Dave”

I hope there is only one Dave at your firm when I use the name directory and I don’t have to type in the last name first.

3) If you have a secretary actually answering the phone, tell her what you do.

I cannot tell you how many times I have called a firm looking for, “the individual in charge of secondary marketing”….silence….”the individual that sells your loans”….silence….”your operations manager”, only to be connected to human resources. Look, if your secretary doesn’t know the answer, there should be someone designated to assist them. If the operator doesn’t know, it is transferred to a manager, because we all know what is going to happen if they ask “May I take a message and forward it to the individual who handles that?” It is the trashcan that handles that message.

Those are just a few of the ways in order to maintain customer service, maintain new business and develop new relationships. To reflect that your company is here to service your clients, not that your clients are here to service you.

I do not believe companies go out of business because they cannot attract more customers, I think, maybe, they just aren’t getting the message.

By: Christian A. Kerr