The NYT has an in-depth look at the pop-psych training that bill collectors are getting, using profile data sucked out of card histories to figure out how to get inside debtors' heads and get them to cough up money they can't afford. This is driven by the long-term strategy of offering cards to poor credit risks on the grounds that they'd be apt to get into debt and cough up huge amounts in interest payment, unlike well-heeled yuppies who pay every bill on time.
The exploration into cardholders' minds hit a breakthrough in 2002, when J. P. Martin, a math-loving executive at Canadian Tire, decided to analyze almost every piece of information his company had collected from credit-card transactions the previous year. Canadian Tire's stores sold electronics, sporting equipment, kitchen supplies and automotive goods and issued a credit card that could be used almost anywhere. Martin could often see precisely what cardholders were purchasing, and he discovered that the brands we buy are the windows into our souls -- or at least into our willingness to make good on our debts. His data indicated, for instance, that people who bought cheap, generic automotive oil were much more likely to miss a credit-card payment than someone who got the expensive, name-brand stuff. People who bought carbon-monoxide monitors for their homes or those little felt pads that stop chair legs from scratching the floor almost never missed payments. Anyone who purchased a chrome-skull car accessory or a "Mega Thruster Exhaust System" was pretty likely to miss paying his bill eventually...
To see how one company transforms thousands of low-paid employees into telephone psychiatrists, I attended a day of Bank of America's four-week training program at the company's Delaware offices. (I was allowed to attend on the condition that I neither identify nor interview the trainees during the course.) At the front of the classroom, a poster explained the company's "Customer Delight Model." The trainees were supposed to "provide a delightful opening," "employ delightful words," "acknowledge and empathize" and "personalize with a POWER close." They spent the morning discussing hypothetical cases, like a cardholder with twins whose husband announced he had fallen in love with another woman. He handed over divorce papers, had a moving truck outside and in short order took over the house and left the cardholder with two kids, only $400 a week and a ton of credit-card debt.
Compared to 75 years ago, Americans spend less on reading, alcohol, tobacco, clothing, and food. They spend more on education, entertainment, and transportation, but the real bank-breaker is how much more Americans spend on housing, even adjusted for inflation.
I’m at Institute for the Future in Palo Alto, CA today (I’m on staff) at the Positive Platform Design Jam, where we had Cornell historian Louis Hyman give a presentation called “Unnatural Capitalism: How the New Deal Reinvented Capitalism and Why We Need to Do It Again.” You can watch a video recording of his […]
UC Irvine economist Peter Navarro, a hand-picked Trump economic advisor: “Navarro has never met Trump in person. And as for speaking with him by phone, he acknowledges, ‘I have never had the pleasure.'”
One of the best ways to progress a career in project management is through earning recognized certifications. These certifications carry significant clout and don’t require expensive tuition or student loans. This Ultimate Project Management Certification Bundle is a great example of an affordable way to get ahead. It includes training for 9 certifications including PMP, […]
There’s nothing quite like the rush of playing against a real human opponent. But from a developer standpoint, creating fun multiplayer experiences is incredibly complex. Fortunately, the Unity3D game engine has made all aspects of game creation, including multiplayer functionality, as accessible as ever.This Unity Course Bundle introduces all of the necessary elements of creating […]
The 2016 World Series game 7 will undoubtedly go down in history as one of the greatest baseball games of all time. With endless suspense, a nefariously-timed rain delay, and extra innings, it reminded over 40 million viewers why they love America’s pastime – and why all bets were truly off in 2016. Savor the […]