Crisis Economy Creates a Jungle of Predators

Cash Crunch, Credit, Deficits, Cause Dishonesty, Predation and Crime

May 31, 2009 Donald Reinhardt

The current economy has created a new spectre, predation by cash-starved, credit-crunched individuals, businesses and government. Beware! All are at risk, marked as prey!

This is a true story. It was an easy day with just a simple oil change at 3,500 miles for a car only 35,000 miles old. It was a routine, ordinary task, for an ordinary person, in what seemed like a simple day. A twenty dollar job with a free tire rotation was surely a good value in today's stressful times.

Scams and Scary Warnings, Alerts and Admonitions Are Important

He sat and read a favorite magazine. Soon his named was called. He approached the desk and the manager looked up and said, "Sir, while the front tires were being rotated a routine inspection indicates the front brakes are seriously worn. There's danger when driving this car. The brakes could fail, at any moment."

He was no ordinary fool. It happened before, and in other ways. His reply was simple and polite. "Thank you so much, please provide the full written estimate and upon payday perhaps the budget will make the repair a possibility." The manager smiled, agreed, wrote it out, and together with the $20 oil bill handed back an estimate for $480 of brake repairs.

Independent Verification of Diagnoses and Second Opinions Are Important

He paid for the oil work with the free tire rotation and soon drove to a reputable chain for another independent brake inspection (Pep Boys). Within 30 minutes, an independent, second brake inspection revealed no problem. But, this true story has two more links. This same car over the next nine months was twice again subjected to this brake routine—once at at a tire dealership when new tires were installed, and once again at another, different, oil change and car repair facility. Fortunately, a reputable, knowledgeable auto specialist informed this victim-consumer that the brakes probably were good for about 10,000-15,000 more miles.

Budget, Protect, Conserve and Build Financial Assets

It is true that in the current economy almost everyone is stressed financially. The world and local economy may get worse before it gets better. Protection, conservation, budgeting, stretching and building of personal financial assets are important and critical for all.

For some, personal financial survival may hang by a thread. Regardless, the simple story that forms the core of this article indicates that anyone can be a target and persons of all types are reaching for others' pockets, wallets and checkbooks.

A business manager recently remarked, "In this bad economy many dealers are hurting. Business is down. Money is needed and there are bad ways that some choose to generate additional income."

Business Codes and Ethics Violations, Reporting Them Appropriately

Here are some guidelines that someone subjected to duplicity in the business world may want to consider:

Report business violations and scams to the Consumer Affairs' or Protections Department of the resident's state.
File a written complaint, with complete details, to the local Better Business Bureau, for unresolved, improper billing and charge disputes,
Send a letter to the franchise headquarters of the national or the regional chain and indicate all perceived or actual abuse of honest business dealing.

It is essential for consumers to be wise, knowledgeable and to protect, conserve, budget and build valuable assets. What a great waste it would have been for a good brake system to be removed that has a life of 25-30% still remaining.

This is not a time to make hasty, foolish or bad decisions, even when others seem to be doing so. These times require "Buyer Beware" to be posted everywhere in one's mind!

Sources

Pond, J. 2009. Safe Money in Tough Times. McGraw-Hill, New York. 229 pp

The copyright of the article Crisis Economy Creates a Jungle of Predators in Personal Budgeting/Finance is owned by Donald Reinhardt. Permission to republish Crisis Economy Creates a Jungle of Predators in print or online must be granted by the author in writing.