Legal Extortion

Legal Extortion

Postby PMC » Tue Mar 02, 2010 2:34 pm

ScotiaBank CEO's pay rises 29%

Compensation for executives in financial sector helped by equity markets, end of crisis

By John Greenwood, Canwest News serviceMarch 2, 2010



Rick Waugh, chief executive of Bank of Nova Scotia, was awarded $9.7 million last year in total direct compensation, up 29% from the previous year as the bank hiked the value of equity-linked compensation for all its top managers.

"Our strong financial results allowed us to reward the executive team with incentive payments in 2009, in line with our 'pay for performance' philosophy," Canada's third biggest bank said in regulatory filings posted Monday on its website.

The next highest-paid executive was Michael Durland, head of Scotia's Global Capital Markets operation and co-chief executive of Scotia Capital, who received $8.4 million, followed by Sarabjit Marwah, vice chairman and chief operating officer, with $4.3 million.

Scotia is the fourth major domestic bank to reveal what it paid its top management last year.

Ed Clark, chief executive of Toronto Dominion Bank, received $10.4 million for 2009, down 5.5% from 2008.

Gerry McCaughey, chief executive of Canadian Imperial Bank of Commerce, took home $6.24 million last year, down from $8.16 million, while Royal Bank of Canada chief executive Gord Nixon received $10.4 million, up from $8.75 million.

Profits for all the banks were significantly improved in 2009 as players benefitted from rising equity markets and growing confidence that the financial crisis has ended.

In 2008 most of the heads of the big banks took pay cuts in a bid to head off concerns that their compensation might be seen as excessive in the same year that the global financial system was still recovering from near collapse.

CIBC shareholders overwhelmingly approved the bank's executive compensation at the annual meeting in Montreal last week as the country's fifth biggest bank became the first to offer investors a "say on pay".

Following lengthy campaign by the Canadian Coalition for Corporate Governance, most of the major domestic banks and insurers agreed to allow their shareholders to vote on how senior management is paid. Such votes are not binding so the results are mos
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Re: Legal Extortion

Postby Mike Cleaver » Tue Mar 02, 2010 3:23 pm

How about lowering interest rates on your usurious credit cards?
I don't have one but see the rates are now just under 20 per cent!
Bunch of self serving bandits!
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Re: Legal Extortion

Postby tuned » Tue Mar 02, 2010 3:37 pm

Everyone should take advantage of the interest free loans offered by the big banks. Going to buy a new big screen TV for three thousand bucks? Charge it the day after your Visa statement date and you can enjoy almost two months of viewing before you have to give the banks your money. I stick it to them using this method every chance I get.
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Re: Legal Extortion

Postby jon » Tue Mar 02, 2010 3:56 pm

Mike Cleaver wrote:How about lowering interest rates on your usurious credit cards?
I don't have one but see the rates are now just under 20 per cent!
Bunch of self serving bandits!

I just read where one of the majors (Sears, The Bay or Canadian Tire) has sent customers a notice that they are raising their interest rate on their credit cards. It WAS 28.8%. I'm not sure what the new, higher rate is going to be.

From personal experience, policies have changed a lot on credit cards in the last few years. Stores like the aforementioned used to deduct returns from the amount owing. But now some, if not all, require you to pay your full monthly balance with real money, not returned merchandise, by the due date or get charged interest from the time of the original purchase, not the due date.

BMO has its faults -- I truly hate their Toronto credit folks' policies -- but I was really impressed with how they handled a screwup at Christmas. For those with a due date on their MasterCard of December 25th, they ran the automatic bank withdrawal so many days later that it was considered a late payment. But they fixed them all as soon as the first person complained. No need for the other 25,000 people effected to phone.
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Re: Legal Extortion

Postby Jack Bennest » Tue Mar 02, 2010 4:10 pm

It took me three tries at the Royal to get a "no annual fee" credit card but I see the
interest rate is 19.5%

My policy is to pay all credit cards through my computer bank account with the only debt
being my credit line - which is quite low in interest paid off at the end of the month.

I don't think the cc companies like that much but it works for me.

My one rule in finance is: if you don't like paying interest - don't use credit.

I watched a "front line" or cbs program on credit cards and you have to admit - stupid people get into trouble - and I have been stupid a couple of times in my life. I should write that book.
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Re: Legal Extortion

Postby Russ_Byth » Tue Mar 02, 2010 4:15 pm

Sorry Jack, I wrote the book and then bought it and bought the t-shirt, on credit! No one is forcing anyone to use a credit card, especially those ones with the exhorbitant rates, which appear to be getting close to loanshark territory. Get yourself out of debt, and then use only cash or debit cards.
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Re: Legal Extortion

Postby kat » Tue Mar 02, 2010 6:16 pm

As sure as the sun rises in the east and sets in the west


Jack Bennest wrote: stupid people get into trouble - and I have been stupid a couple of times in my life. I should write that book.



Only a couple?

:cat2:
The world has two kinds of people. Cat people and idiots.
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Re: Legal Extortion

Postby jon » Tue Mar 02, 2010 6:27 pm

It really does bother me that the credit card companies have replaced the debt consolidators* in their heavily funded targeted marketing at post-secondary students. Only slightly behind the investment fraudsters that target widows and seniors with Alzheimer's, and cigarette companies that target 12 year olds, in the level of contempt I have for them.

Credit card companies used to reject people without a decent employment record. In 1977, Woodwards went as far as phoning my employer's Personnel Department to check me out. Funny part was that they weren't familiar with the new "Direct-In-Dial" that was replacing a single switchboard number for an entire company. So they called me at my desk. And I, of course, verified my employment....

*debt consolidators are the name I use for all those financial companies that buy huge amounts of radio advertising time. And either have catchy jingles. Or pay for live jock reads of their ads. Or both. Household Finance was the leader in the field in the '60s. Today, at least around here, it is Aaron Acceptance.

But the deal is always the same: they pay off all your debts, lower your monthly payments, and give you a new loan with a much higher interest rate.

It was usually young adults who got caught. Kids who left home at 16, racked up large debts, then, at 18, got some sense, and thought this was the way to solve their problem.
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Re: Legal Extortion

Postby Coolcat » Wed Mar 03, 2010 12:49 am

Jack Bennest wrote:
My policy is to pay all credit cards through my computer bank account with the only debt
being my credit line - which is quite low in interest paid off at the end of the month.

I don't think the cc companies like that much but it works for me.


Actually they still like you as a customer. They just don't double end your purchases. They charge the merchant 2 percent or more depending on what kind of charge card you use so on a $3K TV they make $60 or more.
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Re: Legal Extortion

Postby tuned » Wed Mar 03, 2010 1:03 am

Yeah they make sixty bucks from the merchant but they pay him right away and have to wait around for almost two months before I pay them. Oh and they also have to pay aeroplan to give me 3,000 miles for my purchase. They also have to fork out to an insurance company for my car rental insurance and my medical insurance for my US trips. The card does have a $120 annual fee but considering the interest free loans and all the other goodies it's a much better deal for me than for them. I put everything on it including a gazillion ten buck transactions that they have to process. The other thing with banks is don't be loyal to them. Go with whoever gives you the best deal and don't be afraid to dump them if you can get a better offer elsewhere. An American outfit operating in Canada called MNBA has a credit card with a 6% rate if you normally carry a balance.
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Re: Legal Extortion

Postby Mike Cleaver » Wed Mar 03, 2010 2:18 am

Do some research on MNBA before hooking up with them.
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Re: Legal Extortion

Postby Mike Cleaver » Wed Mar 03, 2010 3:44 am

I've been with President's Choice (CIBC) for the past 13 years.
I also have a PC Mastercard.
No fee banking.
The credit card rate is high, 20 per cent but you don't pay it if you pay the balance on time.
There is no fee for the credit card and you get points you can cash in at the Superstore for groceries.
A car loan with the same institution came at 4 per cent.
If you need any other banking services, you can do them on line or by phone or go to one of the kiosks at a Superstore.
Any disputes over credit card transactions have been quickly dealt with, always in my favour.
There are additional charges for certain infrequently used services such as Money Orders or transfers to other financial institutions.
They also monitor credit card use that's out of the norm.
I always let them know beforehand if I am going out of the country so the card won't be flagged as stolen.
I have yet to have a problem with President's Choice and I have saved thousands in fees compared to the big banks.
I've dealt with them all over my lifetime.
All of the big banks have screwed me one way or another.
All except PC.
President's Choice is the best.
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Re: Legal Extortion

Postby jon » Wed Mar 03, 2010 3:46 am

tuned wrote:Yeah they make sixty bucks from the merchant but they pay him right away and have to wait around for almost two months before I pay them. Oh and they also have to pay aeroplan to give me 3,000 miles for my purchase. They also have to fork out to an insurance company for my car rental insurance and my medical insurance for my US trips. The card does have a $120 annual fee but considering the interest free loans and all the other goodies it's a much better deal for me than for them. I put everything on it including a gazillion ten buck transactions that they have to process. The other thing with banks is don't be loyal to them. Go with whoever gives you the best deal and don't be afraid to dump them if you can get a better offer elsewhere. An American outfit operating in Canada called MNBA has a credit card with a 6% rate if you normally carry a balance.

A bunch of points, from experience:
  1. You would have to do some real looking for a credit card with a billing cycle that long and then do some pretty fancy timing on all your purchases to squeeze 60 days out of any credit card. Looking at mine, January 19th is the date I made my first purchase in this billing cycle, and payment is due March 12th. That is 52 days. Buy at the end of the billing cycle, February 18th in my example, and you get 22 days. From what I've been told by merchants, they wait at least 90 days for their credit card processing bank to pay them off.
  2. Lack of loyalty to your bank comes with a hefty price tag. Any that I've dealt with over the last 35 years look at how long you have been their customer. Even switching branches can cost you. Yes, even in this day of ATMs, et al, I know of folks who had to go to their home branch, in person, to get a loan. And they look at how long you've been doing business at that branch, not the bank in general.
  3. If a bank is hungry for your business, you might get your loan by switching banks, but only if you take "all your business" there. But what if you need a loan and can't find a hungry bank?
  4. Loyalty can also help you get a better interest rate on your loan, though hungry seems to be a more important factor.
  5. On the other hand, I am not sure you gain much by getting your credit card from the same bank as you bank with. I am not aware of much in the way of adverse effects by switching credit card banks, assuming you qualify (i.e. - credit cards rarely get pulled if you no longer qualify, financially, so long as you make your payments) and don't need a $20K credit limit.
  6. It always pays to have two "general" credit cards, typically one Visa and one MasterCard. In the past, one huge hold on your credit card by a hotel could push you over your limit. Today, cards are routinely suspended if your spending patterns don't match a computer's model of your spending patterns. Typically, you'll get a phone call first, but not always. More likely, you'll be traveling and miss the call. The Olympics' requirement for Visa demonstrate the need for different "types" of cards. Some small retailers still only take one or the other (Visa or MasterCard). And some foreign countries accept one more easily than the other.
  7. You may even need additional credit cards. For example, Sears now offers a 90 day return period if you purchased with one of several Sears cards. Pay cash or other credit card, and you only get 30 days. For Sears-owned brands, that is the difference between a possible repair or refurbished replacement, and getting your money back in Months 2 and 3. For other brands, it means going back to the manufacturer and working your way through their warranty process, which often costs more in fees than the item is worth. Not to mention the time involved. Companies like Best Buy Canada are rare, where they instantly replace the product with a new one after the return period until the warranty expires, even if you don't buy their extended warranty. Admittedly, that partially accounts for the long lineups at Best Buy return counters, which can lead to a lot of time spent, especially in busy times of the week and year.
  8. Aeroplan points are useful, but I prefer cash. Like you, I pay $120 or so annually for a card each for my wife and me, but I get $735 annually in "cash back".
  9. The "Charge Back" process varies from simple procedures and fast refunds to hard and very slow (3-6 months) depending on the bank. Disputing a charge that you did not make is one thing. But deceit by merchants, such as charging you more than you agreed to, or unsatisfactory service, is more likely to be a problem. Stolen credit cards are less likely to be a problem than a true case of Identity Theft, which is a nightmare that only gets worse if you don't have full and competent cooperation from your credit card bank.
  10. A growing trend among credit cards is to charge hefty fees or a large percentage spread on exchange on foreign transactions. Admittedly, I've only read about U.S. credit cards doing this.
  11. Changing credit cards can hurt your credit rating. The only situation I'm aware of personally is a former credit card claiming I still had a large credit limit with them, even though I canceled my card 5 years earlier. That effected my ability to get a loan from my bank.
  12. Changing credit cards or bank accounts is a time-consuming and error-prone process if you, like most of us, automate our financial transactions to any degree. Who writes cheques for their utility bills anymore when you can automate payment by giving the utility company your credit card number and expiry date or bank account number so they can do autowithdrawal on the last possible day? Manually paying each month using on-line banking gets tedious quickly.
  13. And, finally, from time to time, I find that one or more of my favourite discount stores, typically computer parts places, will give me a sizable discount for cash.
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Re: Legal Extortion

Postby tuned » Wed Mar 03, 2010 10:16 am

Loyalty is a one way street for the banks. Yes you are correct that the maximum billing cycle is 52 days but it's still a great deal. No fancy timing required, just make your big purchases the day after your statement date. I seriously question your credibility when you say that merchants wait 90 days to have their Visa transactions posted. They receive the funds almost immediately and in some cases instantly after the transaction is authorized. You are also correct that a "hungry" bank just like any other business that is "hungry" for business is best to deal with. I have taken advantage of great deals and although the banks have asked if I wanted to give them "all of my business" I have respectfully declined and still gotten what they were "hungry" to sell. Recently the TD Bank decided to tear up the contract for all of their customers that had secured lines of credit.
I signed a lengthy document about ten years ago where I agreed to pay the Prime Rate of interest. Three months ago TD decided that they now wanted Prime plus 1%. There was zero reason for them to welch on their agreement other than pure greed. Some loyalty. Bank of Montreal decided this was a good time to increase their market share and they started running big ads offering the "old deal" to TD customers, although in polite Canadian banking they didn't mention TD by name. Guess what? I'm now a Bank of Montreal customer. Banks are just like all the other sleazy big businesses trying to relieve suckers of their money. Treat them as such. They don't deserve any special consideration and the notion that somehow if you are a good little sucker that they will treat you better is in my experience a fantasy.
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Re: Legal Extortion

Postby jon » Wed Mar 03, 2010 10:35 am

tuned wrote:I seriously question your credibility when you say that merchants wait 90 days to have their Visa transactions posted.

Obviously, my information was out of date, as here is what RBC says about Moneris:
  • A single point of contact for accepting Visa, MasterCard, Amex and Interac payment
  • All funds automatically deposited into 1 RBC business account, with next business day access to funds (subject to certain conditions)
The last time I talked to a merchant about credit card payments, that was the way it was -- 90+ days to get paid. That was likely the end of the days -- small merchants the last holdout -- where processing was on paper, mailed weekly or monthly by the merchant to the credit card handler, which could easily drag things out to 3 months.
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