The other day I came across an article that demonstrates the power of social media and how it can
Background: In a re-run of a story that I hear every day, Bank of America arbitrarily increased Ann Minch's interest rate to 25%. According to the video, she had been a long standing customer, had never been late and has good credit. BOA gave her no warning and refused to lower the rate when she called to complain. In todays market enviornment, this is standard procedure.
After going through the normal channels she got no satisfaction, the bank refused to return her interest rate to the lower level. She fought back by posting her Debtors Revolt Video on You Tube.
The Result: Within 5 days of the video being posted on You Tube, Bank of America contacted Ann and agreed to reduce the interest rate to the previous level.
Why is this significant? It demonstrates the viral impact of social media on corporate behavior. It used to be that a dissatisfied customer had to get the attention of the news media to get their message out. If they were lucky a reporter would contact the company and air the dirty laundry on the local news.
Social Media gives each and every person the opportunity to fight back without involving a third party. More importantly, the reach is further. This video created a call to action to thousands of angry consumers. It spread like wildfire across the internet and Bank of America responded - FAST.
Obviously this video caught my attention because it involves what I do for a living. Beyond getting a certain satisfaction for this woman's win, I realized that this win has nothing to do with interest rates or debt.
The real take away here is that social media has the power to make Business more responsible. Corporate America can no longer control the brand with carefully crafted PR campaigns that cover up the truth. Ultimately this video demonstrates that Social Media has power beyond the mundane. Social Media will force Corporate America make choices that are good for consumers and business. Ultimately that's good for America!
I am Kate Bourland. I help my clients get out of debt, get loan modifications and establish a debt free lifestyle. We Guarantee our Loan Modifications. You can reach me at 530-419-3967.
15 Comments on Debtors Revolt : How Social Media is Changing Corporate Behavior
OCT
08
2009
I can relate to this issue. My wife had an account with Chase. The balance had been transferred there because of a promised low interest rate until paid off. She was/is never late. They bumped her from under three per cent to just under 10 and then to over 13. There is no excuse for such behavior on the part of a large institution.
They are led by thieves. I have more respect for unemployed purse snatchers.
I saw this article the other day, too. Personally, I feel that anything consumers can do to make banks and BIG business pay for their most unethical behavior is great for all of us! If consumers only knew how much collusion there was at the top to fix prices, overcharge, increase fees, etc. It only takes a small increase multiplied by many millions of customers to make these businesses a fortune in extra, clean income each month.
By posting videos on YouTube and elsewhere on the net, consumers can 'lift the rug and watch all of the bugs scatter' when you shine light on them, exposing their illegal behavior.
Thank you for sharing. I can really relate to her and she has inspired me to speak out as well when I am wronged. Good for her to take a stand and be heard.
Kate, I happened to catch this on the news. I thought she did a fabulous job and I KNEW I'd have to learn how to post videos :) It is amazing what someone will pick up on and Social Media can be a powerful tool!
Sadly, most of these credit cards won't listen if you are actually paying your bills. If you stop paying, suddenly they are willing to listen to reason.
Glad to see she fought back. Nice to think we can make a difference, but even if they changed one persons rate, that doesn't help the other millions out there that are roped into debt. Better for us to make You Tube videos advising people not to use credit cards in the first place. No debt, no problem.
my goodness, all these comments and no response from me. oops.
Brian - first. You are right on all counts, although you did miss the point of this post. I think that if we get together as Americans we can use social media to change corporate behaviour. It doesn't have to be one person at a time.
Hi Donne, thanks for the comment and feel free to re-blog if you'd like
Claudette, thanks for commenting. Yes 30% is an outrage.
Julia, the financial sector whole mentality is punitive and fee based. They only care about stockholders and have set about stealing from the consumer to pay stockholders. A reverse Robin hood I guess.
Hi Carole, if you need help posting videos let me know. I'll be happy to assist.
Good for her. You're right social media keeps proving it's power in world altering ways. Look at the role it played in Iran when they tried to lock down the media.
Hey, Kate - You said "Bank of America arbitrarily increased Ann Minch's interest rate to 25%." but then you said that Ann "had been a long standing customer, had never been late and has good credit." That's not arbitrary. That's the way the banks are working now.
"Give me control of a nation's money and I care not who makes the laws." --Mayer Amschel Rothschild
"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation and then deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.--President Andrew Jackson
This Blog is my voice on the political, financial and social implications of debt. My goal is to encourage my readers to think outside their own personal reality and to challenge the social and political truths we have been taught about money, finance and our "free market" economy.
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I can relate to this issue. My wife had an account with Chase. The balance had been transferred there because of a promised low interest rate until paid off. She was/is never late. They bumped her from under three per cent to just under 10 and then to over 13. There is no excuse for such behavior on the part of a large institution.
They are led by thieves. I have more respect for unemployed purse snatchers.