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Mar 19, 2006 10:45 am

I have a few questions. I am 26 years old, just graduated from college. I made it through all the interviews with EDJ and when they did a credit check they called and told me they could not continue in the process. And yes I ruined my credit when I was 18. Beacon score of like 530. I am working to pay it all off right now, its not alot of debt. Less than 3,000. What i really want to know is that, I have interviews set up with other firms and is it going to be the same there with the credit. You all say that Ameriprise will hire anyone, well I have the second interview with them next week. What do I need to do to help my credit and get a job with a decent firm?

Mar 19, 2006 11:08 am

From what I know about credit scoring a low score is vastly improved if you simply pay your bills on time for as little as a year.


You should not put a lot of credence in the phrase, "They will hire anybody" to mean that poor credit scores or criminal records are acceptable.  The "anybody" that is being thought of is akin to "any goofball, no matter how poor the presentation skills are" not "Credit risks and pedophiles are welcome to apply."


Something for everybody to know about.  If you have crushing credit card debt get in touch with the cards and propose a onetime settlement for far less than the balances.  My best friend ended up owing tens of thousands of dollars, like more than $50,000, due to a failed business he was involved with.


He approached the card company and asked for help.  What happened was he paid them all off for about $10,000 in a lump sum.  20 to 25 percent. He's vague about how much he owed and exactly how much he paid.  He did tell me that his wife's parents made the cash available.


There is a tax issue as well.   The former creditor is going to send a 1099 reporting the forgiven debt as income to you, so they can write it off because you'll be paying taxes on it.


Even so, if you are being crushed by debt, and can get the money somehow, you should probably consider it.


It might even make sense to consider a premature withdrawal from a qualified plan.  Taxes and all sorts of penalties can really bruise you, but paying 18% interest on balances that never decline is even worse.


Finally the really odd part.  His credit score went up.  Got that, it went UP!  Because he no longer owed the money and was no longer past due on his payments.


From what I understand the incidents show up as "Settled for less than full balance" or something like that.  A damnsight better than "Charged Off" or wording such as that.


In fact, about three months after he paid them off he was getting those mailers telling him he was pre approved for a credit card.


The credit card industry must be populated by morons.

Mar 19, 2006 11:18 am

Thanks for the insight. I am no where near that much in debt. It was pretty much credit card debt from 1998-2001. I graduated with a 3.2 GPA. It just so happens that I have some credit card debt and previous drinking conviction, but to really be honest, WHO doesnt. Even our president and congress have drinking convictions, but I dont have the money that they have. I am not a bad person just because I have a little credit debt and a college drinking past. Thanks for all the help and guidance.

Mar 19, 2006 11:44 am

[quote=bigdaddyju34]It was pretty much credit card debt from 1998-2001. I graduated with a 3.2 GPA. It just so happens that I have some credit card debt and previous drinking conviction, but to really be honest, WHO doesnt. Even our president and congress have drinking convictions, but I dont have the money that they have. I am not a bad person just because I have a little credit debt and a college drinking past. [QUOTE]


WAIT--a drinking conviction.  Who doesn't?  I don't, nobody I know does, and there are hundreds of millions of others who don't.


In many states a drunk driving conviction is a felony.  So, what you are presenting to a potential employer is a convicted felon who doesn't pay his bills.


Sounds just like a securities industry manager's nightmare.


Put yourself in their shoes.  One day the kid they hired gets dragged into an arbitration hearing and the plaintiff's attorney starts to mock you as a convicted felon who doesn't pay your bills, yet you were trusted to handle the financial affairs of others?


As for the comment about President Bush's run in with the same issue.  He too would not have been hired to be a broker at the same age.


Let me ask something else.  Does using a cigar as a sex toy fall into the "Who doesn't, even the President does it?" form of excusing things that should have consequnces?

Mar 19, 2006 12:07 pm

Good point Big Easy Flood. This kid is a moron. And a kid he is.


Mar 19, 2006 12:45 pm
derekgaddy:

Good point Big Easy Flood. This kid is a moron. And a kid he is.



Moron?  Nah, not a moron.  Naive?  You bet.


Having a hard time coming to grips with the fact that what we do in life has consequences?  Absolutely.


Should he be barred from a career in Wall Street?  Things he's dealing with are excused ten years after you did them.  That's a long time when you're young, but it will pass quicker than you can imagine and there will still be plenty of time to get on with a career.


Meanwhile it would be a mistake to hire on with somebody who will overlook the problems because that's like intentionally jumping into quicksand thinking, "I'll just stay here for awhile."


He should go sell something that does not require licensing, FBI background checks, fingerprints and all that.


As for the credit score.  It's almost impossible that his score could be so low simply based on some difficulties from his college years.  The score indicates that he's not current on his Visa card payments right now, today.


And that is a problem, as it should be.

Mar 19, 2006 3:10 pm

You all are right but i am far from a felon. I just had too much fun in college and didnt think about the consequences and now I am paying for it. I really dont need you idiots to tell me that. I was asking for advice but as I can see, you never have any advice, all you do is slander EVERY firm out there. You must sit at home and post on message boards all day.

Mar 19, 2006 3:23 pm
bigdaddyju34:

I have a few questions. I am 26 years old, just graduated from college. I made it through all the interviews with EDJ and when they did a credit check they called and told me they could not continue in the process. And yes I ruined my credit when I was 18. Beacon score of like 530. I am working to pay it all off right now, its not alot of debt. Less than 3,000. What i really want to know is that, I have interviews set up with other firms and is it going to be the same there with the credit. You all say that Ameriprise will hire anyone, well I have the second interview with them next week. What do I need to do to help my credit and get a job with a decent firm?



Bigdaddy- Good luck to you but the real reason that you didn't get past the first interview is an arrest in the past coupled with very serious denial. I wish you the best for your future but right now the securities industry is not right for you.

Mar 19, 2006 3:31 pm
noggin:
bigdaddyju34:

I have a few questions. I am 26 years old, just graduated from college. I made it through all the interviews with EDJ and when they did a credit check they called and told me they could not continue in the process. And yes I ruined my credit when I was 18. Beacon score of like 530. I am working to pay it all off right now, its not alot of debt. Less than 3,000. What i really want to know is that, I have interviews set up with other firms and is it going to be the same there with the credit. You all say that Ameriprise will hire anyone, well I have the second interview with them next week. What do I need to do to help my credit and get a job with a decent firm?



Bigdaddy- Good luck to you but the real reason that you didn't get past the first interview is an arrest in the past coupled with very serious denial. I wish you the best for your future but right now the securities industry is not right for you.



No, he's not right for the securities industry--the industry could be exactly right for him which is why it is too damn bad that  he was driving around drunk and didn't pay his bills.


The decisions we make have consequences.

Mar 19, 2006 4:09 pm

Yes...we all have to live with the consequemces of our decisions...well, most of us anyway.


Now about this industry and it's high standards.  ARE YOU KIDDING ME?  The vast majority of those in this business are a lot closer to Boiler Room than Mother Theresa.


In what other industry do you take 20+ year olds...teach them enough to pass an exam for a license and then lose them on an unsuspecting world...where they claim to be in a position to "help you make investments for retirement, etc."  when in reality 95% will be gone before the first trail commission is due?


The training I got at two different wirehouses, whose names are well known and repected, consisted of compliance training and cold calling training. Period.  Everything else is OJT!


Yes this young name is naive and has a serious situation dealing with reality but please...guys...97% of FAs are in it for the bucks. period...and like you are said...95% fail.


And that is ALL THEIR FAULT..right?  Not lousey training, crappy managers looking out for themselves, lack of professionalism and 100 other issues.  Nope...it's all because the hired FA was reeally just a whiner, a loser, who couldn't cut it.


Is it any wonder 95% fail?

Mar 19, 2006 4:42 pm
FinclPlngPro:

The training I got at two different wirehouses, whose names are well known and repected, consisted of compliance training and cold calling training. Period.  Everything else is OJT!



First, why did you need training at TWO different wirehouses?  It seems to me that a smart guy could get it the first time at the first wirehouse.


Second, are you saying that at neither house did somebody try to explain the diffrences between a stock and a bond?


Are you saying that nobody sat down with you and explained how the firm's recommendations are determined?


Are you saying that nobody explained how to write a trade ticket?


Are you saying that nobody showed you how the cage worked and what goes on in there?


What are the names of those wirehouses that were so derilict in their responsibilities?


Without knowing that you sound like a malcontent who doesn't know has ass from his elbow.

Mar 20, 2006 9:32 am
Big Easy Flood:
noggin:
bigdaddyju34:

I have a few questions. I am 26 years old, just graduated from college. I made it through all the interviews with EDJ and when they did a credit check they called and told me they could not continue in the process. And yes I ruined my credit when I was 18. Beacon score of like 530. I am working to pay it all off right now, its not alot of debt. Less than 3,000. What i really want to know is that, I have interviews set up with other firms and is it going to be the same there with the credit. You all say that Ameriprise will hire anyone, well I have the second interview with them next week. What do I need to do to help my credit and get a job with a decent firm?


Bigdaddy- Good luck to you but the real reason that you didn't get past the first interview is an arrest in the past coupled with very serious denial. I wish you the best for your future but right now the securities industry is not right for you.



No, he's not right for the securities industry--the industry could be exactly right for him which is why it is too damn bad that  he was driving around drunk and didn't pay his bills.


The decisions we make have consequences.



Big Easy-

You speak the truth for the most part and I'm sure your thoughts are well-intentioned even if it isn't what bigdaddy wants to hear.  Sometimes we don't always get the news we want.  Life's tough that way.

Having said that-I think you're being a little naive.  The securities industry is loaded with folks with some sort of DUI/DWI 'issue' given the high-pressure and highly social nature of the business. I know that for a fact.

We need to be careful dispensing advice to our friend here, since neither of us are attorneys.  Depending upon the EXACT nature of the 'drinking offense', and as well the timing and final disposal of the matter, he may not even need to disclose it, or can disclose it in a matter that can often easily address any hiring manager's concerns.  (After all, it is highly likely that the hiring manager has a few skeletons of his own.....)

Bigdaddy-I understand that you're pissed off and frustrated, but your response is not especially constructive.  If you're going to stay in this business you need to learn to take criticism and bad news a little better than that.

My suggestion-take a couple hundred bucks and if possible copies of some of the pre-hire questionnaires and go see a decent lawyer to get an idea how to handle these delicate questions.  He might also be able to give you some guidance on the debt issue, maybe write a couple of letters to the creditors to help you out.

It wouldn't hurt, too, to get some sort of part-time job in addition to your current employment and dedicate that extra income SPECIFICALLY to paying off your debt as quickly as possible.  Do that and hold your spending down and you'll be suprised how quickly things improve.  Trust me, I've been there years ago.

You have a couple of strikes against you in addition to your relative inexperience.  But, with a little effort you can improve how you look to a hiring manager.

Good luck.

Mar 20, 2006 12:48 pm
Big Easy Flood:

From what I know about credit scoring a low score is vastly improved if you simply pay your bills on time for as little as a year.


You should not put a lot of credence in the phrase, "They will hire anybody" to mean that poor credit scores or criminal records are acceptable.  The "anybody" that is being thought of is akin to "any goofball, no matter how poor the presentation skills are" not "Credit risks and pedophiles are welcome to apply."


Something for everybody to know about.  If you have crushing credit card debt get in touch with the cards and propose a onetime settlement for far less than the balances.  My best friend ended up owing tens of thousands of dollars, like more than $50,000, due to a failed business he was involved with.


He approached the card company and asked for help.  What happened was he paid them all off for about $10,000 in a lump sum.  20 to 25 percent. He's vague about how much he owed and exactly how much he paid.  He did tell me that his wife's parents made the cash available.


There is a tax issue as well.   The former creditor is going to send a 1099 reporting the forgiven debt as income to you, so they can write it off because you'll be paying taxes on it.


Even so, if you are being crushed by debt, and can get the money somehow, you should probably consider it.


It might even make sense to consider a premature withdrawal from a qualified plan.  Taxes and all sorts of penalties can really bruise you, but paying 18% interest on balances that never decline is even worse.


Finally the really odd part.  His credit score went up.  Got that, it went UP!  Because he no longer owed the money and was no longer past due on his payments.


From what I understand the incidents show up as "Settled for less than full balance" or something like that.  A damnsight better than "Charged Off" or wording such as that.


In fact, about three months after he paid them off he was getting those mailers telling him he was pre approved for a credit card.


The credit card industry must be populated by morons.





Do you do any work at all !!!!  How in the world do you have so much time to type these ridiculous posts.  You should have been a writer.


Get off the Internet and pick up the phone.

Mar 20, 2006 1:04 pm
joedabrkr:



Having said that-I think you're being a little naive.  The securities industry is loaded with folks with some sort of DUI/DWI 'issue' given the high-pressure and highly social nature of the business. I know that for a fact.

We need to be careful dispensing advice to our friend here, since neither of us are attorneys.  Depending upon the EXACT nature of the 'drinking offense', and as well the timing and final disposal of the matter, he may not even need to disclose it, or can disclose it in a matter that can often easily address any hiring manager's concerns.  (After all, it is highly likely that the hiring manager has a few skeletons of his own.....)



No it is not "highly likely" that the hiring manager has a few skeletons in his own closet.  Reputable firms are going to check and double check the backgrounds of anybody who gets promoted to positions of responsibility.  They, the employers, can ill afford to ever have something come back and bite them.


As for asking an attorney how to answer the questions.  I think that's fine but the fact is that the background check is going to turn up a DUI if there is one there, and if the applicant was trying to be clever in his answers he is going to piss off the decision makers in branch supervision and compliance.


If somebody has a DUI conviction on their record it either is, or is not, a felony in the state where it occured.  That makes answering the question regarding conviction of a felony as black and white as any other yes or no question.  There is no gray area, nor does it matter if everybody else has one too.

Mar 20, 2006 2:14 pm
Big Easy Flood:

......You should not put a lot of credence in the phrase, "They will hire anybody" to mean that poor credit scores or criminal records are acceptable.  The "anybody" that is being thought of is akin to "any goofball, no matter how poor the presentation skills are" not "Credit risks and pedophiles are welcome to apply."




Yet, just when you think you've got all the answers....



Gamble on ex-con rep backfires

By Bruce Kelly


March 20, 2006

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NEW YORK - A registered representative and convicted felon affiliated with Lincoln Financial Advisors Corp. until December is facing charges of stealing $2.25 million from nine clients in a Ponzi scheme that went to pay his debts and expenses.

The broker, Richard Daniels of Chagrin Falls, Ohio, was under special supervision at Fort Wayne, Ind.-based Lincoln Financial Advisors because of his checkered past - which includes being banned from the securities business. He faces one count of securities fraud, according to a federal indictment, which was filed in U.S. District Court in Cleveland on March 7.
 
The fact that a broker convicted on two counts of mail fraud in 1983 served as a licensed registered representative at Lincoln Financial Advisors shocked some industry observers and critics.

Before the mail fraud convictions, Mr. Daniels, 57, was barred from the securities industry in 1978 by the Securities and Exchange Commission for defrauding investors in a scheme involving the sale of phony promissory notes.

However, the SEC lifted that ban in 1989 after Mr. Daniels began working at a broker-dealer, according to the current complaint.

Unfit to handle money

"This guy should not be handling peoples' money," said Thomas Ajamie, a plaintiff's attorney in Houston. "Why would you allow him to? If you're handling peoples' money, you should have an impeccable background."

Others were surprised that Mr. Daniels was able to find work at all in the securities industry, particularly in an era when fear of regulatory scrutiny has made broker-dealers extremely reluctant to hire brokers with any kind of blemish on their compliance records.
Mar 21, 2006 6:35 pm

Disclose everything.