Episode Summary
In this episode, Johnny Mueller dives into the economic challenges facing Argentina, including high inflation and currency exchange controls. He critiques the idea of investing in Argentina, noting that these factors make it difficult for foreign investors to profit. Johnny also introduces Ricardo Salinas, a Mexican billionaire who owns Electra, a chain of appliance stores that has been successful in Latin America due to its easy payment plans and financing options. He explains how Electra's business model has been particularly effective in countries with limited access to credit, allowing customers to purchase goods on time with minimal monthly payments, even though the interest rates are high. However, Johnny points out that Electra is now closing its operations in Argentina due to the country's unfavorable economic conditions, including exchange currency controls, import and export restrictions, and high inflation. He also mentions that Electra has found Peru to be the best-managed economy in Latin America over the past decade, suggesting it as a more attractive option for investment and living.
In a separate segment, Johnny discusses the exodus of multinational companies from Argentina due to government mismanagement and economic instability. He references the Wall Street Journal, noting that high-end retail brands like Ralph Lauren, Calvin Klein, and Louis Vuitton have left the country without public criticism. He also mentions Electra as the first to directly criticize the economic environment. Transitioning to a different topic, Johnny talks about Bitcoin and its growing acceptance, particularly in Cyprus and Guatemala. He corrects a misconception about the first university to accept Bitcoin, pointing out that the University of Francisco Maru in Guatemala is actually the first and has been doing so for months. He highlights the university's high rating, affordability, and the opportunity for expats to teach there, emphasizing the potential for higher income and the ease of teaching in English.
In another segment, Johnny discusses the importance of verifying warranty terms when purchasing products in Latin America, particularly highlighting the discrepancy between advertised warranty periods and the actual terms provided at the checkout counter. He emphasizes the need for expats to ask questions and check the fine print, as the physical receipt often contains the real warranty duration. He also warns about the challenges expats face when dealing with consumer contracts in Latin America, such as renting a mailbox or signing a lease for a satellite TV service. Johnny stresses the importance of having a lawyer to navigate these contracts, as they often require references and proof of identity. He also touches on the financial pitfalls of buying on credit, especially for expats who may not have local references or cosigners, and advises sticking with a trusted lawyer for long-term support.
In a separate segment, Johnny discusses the legal and financial landscape for expats in Latin America. He highlights the common practice of lawyers charging high fees but not running their clocks, advising clients to expect long sessions and to bring entertainment. He also warns about the prevalence of high-interest payment plans and the culture of debt in the region, noting that many Latin Americans are deeply embedded in credit and debt. Johnny explains how appliance and furniture stores in Latin America make significant profits through financing plans and extended warranties, and he critiques the lack of consumer awareness and the absence of consumer protection magazines like Consumer Reports in the region. He also touches on the importance of personal references when signing contracts and the challenges expats face in navigating these systems.
Finally, Johnny discusses the prevalence of dubbed Spanish content in Latin American media, particularly for first-world movies, HBO documentaries, and popular TV shows. He highlights the frustration of new expats and gringos who prefer English subtitles or dubbed content. Johnny suggests that while dubbed content can be a way to learn Spanish, it's also a form of 'mind-numbing junk' that expats might want to avoid. He recommends satellite TV services like Sky TV as a solution, noting that they offer both English and Spanish options for various channels, including sports and entertainment. Johnny also provides practical advice on setting up satellite TV, including avoiding automatic deductions from credit cards or bank accounts and opting for direct deposits through local banks. He emphasizes the importance of understanding contract terms and the legal cooling-off period for such services, though he notes that this topic will be addressed in a future episode.
Topics
Economic challenges in Argentina, Impact of inflation and currency exchange controls, Investment opportunities in Latin America, Business model of Electra stores, Comparison of economic management in Latin American countries, Bitcoin and its adoption in Latin America, Opportunities for expats in education, Consumer contracts in Latin America, Warranty discrepancies, Legal advice for expats, References and identity verification, Financial risks for expats
Chapters
00:00:00 Opening 00:00:33 Economic Challenges in Argentina 00:01:06 Currency Exchange Controls and Investment Risks 00:02:45 Electra's Business Model and Success in Latin America 00:04:25 Electra Closing Operations in Argentina 00:05:55 Peru as the Best-Managed Economy in Latin America 00:06:16 Multinational Companies Leaving Argentina Due to Economic Mismanagement 00:06:53 Electra Becomes the First Large Retailer to Criticize Argentina's Economic Environment 00:08:59 The University of Francisco Maru in Guatemala: A Top-Rated Institution Accepting Bitcoin 00:10:39 Expats Can Earn High Salaries Teaching at Private Universities in Latin America 00:12:01 Warranty Discrepancies and the Importance of Checking Receipts 00:12:54 Consumer Contracts and the Need for Legal Support 00:15:00 The Role of a Lawyer in Navigating Legal and Financial Challenges 00:17:00 The Legal Landscape for Expats in Latin America 00:17:39 Financial Practices and Payment Plans 00:18:15 Debt Culture and Consumer Awareness 00:22:25 Dubbed Spanish Content in Media 00:22:54 Frustration with Dubbed Content 00:23:01 Learning Spanish Through Dubbed Content 00:23:34 Need for English Channels for Expats 00:24:19 Setting Up Satellite TV Services 00:25:01 Financial Considerations for Satellite TV 00:27:13 Legal Aspects of Service Contracts
Transcript
Automatically transcribed from the original recording; names and wording may contain errors.
[00:00] South of the border down Mexico way That's where I fell in love when the stars above came up to play and now as I wonder Hello there all you expat wannabes I'm Johnny Mueller and you're listening to the expat files living in Latin America the show that tells you just what it's like to live Work play and or retire down here in Latin America It's a mix of the good the bad the ugly and the great and it's all right here. So let's get started Now we all know there's a lot of bad economic things happening down in Argentina and in spite of all you Doug Casey followers out there I don't recommend it unless you've got money to burn and you like permanent feelings of financial insecurity Not to mention 25 to 35 percent a year inflation
[00:48] Now that'll kill your nest egg in a hurry and all the gringos living there like Doug Casey and his buddies Even though they say don't keep your money in the country Keep it outside and use the fact that their peso is crashing against the dollar to take advantage of the huge Opportunities that that presents well that sounds great on the surface But Argentina now has currency exchange controls designed to stop foreigners from taking advantage of the weak currency like that Now you might be thinking why listen to Johnny. What does he know? He's no mega millionaire like Doug Casey and I agree. So I say don't listen to me Listen to this guy Ricardo Salinas play ho who you probably never heard of because he's only like the fourth richest guy in Latin America and you've probably only heard of the richest one Carlos Sim from Mexico who's in fact the richest guy in the world and just as an aside looking at a photo of Carlos Sim
[01:39] The richest guy in the world you have to believe in karma because he's as physically ugly as he is filthy rich Kind of like the Latin version of Aristotle Onassis who was always on the top 10 list of the ugliest rich guys in the world Which begs the question was Jackie Kennedy so broke that she had to marry that little gargoyle? I know I know he had a great personality right, but I digress Anyway, like I've said in a few past shows the largest employer in Latin America is Walmart And I've also mentioned they've got a few thousand stores down here going gangbusters I might add but here's what you didn't know There's a tough little competitive group of Latin chain stores that you see all throughout Latin America, too Not exactly big box stores But big appliance stores on the order of a middle or lower middle-class Sears kind of like the old monkey wards or JC pennies
[02:27] You know and they're owned by this other Mexican billionaire Ricardo Salinas Peligio who like I said is the fourth richest guy in Latin America and this guy's net worth anywhere between 8 and 10 billion dollars now all throughout Latin America. He's got these stores called Electra stores and presently he's got about 1500 of them and growing all the time and the key he found to growing his little Electra empire so fast into this huge Multi-billion dollar industry like Walmart was the fact that he was one of the very first retail outlets starting in Mexico Of course to self-finance the sales of everything he sold from appliances and bedroom sets costing a thousand bucks or more to cheap $5 knickknacks Yep in one of those Electra stores You can buy anything and everything they sell on time even a $5 knickknack and Electra is the bank
[03:17] They're the ones that finance you so on the spot financing for their customers was their key to success sure the interest rates Will kill you but people are stupid and they'll buy anything on time if they're only paying 15 or 20 bucks a month They don't care if they're paying a hundred percent a year for 12 years and continue to pay long after the TV They purchased has died. They don't want to know the real numbers. They just want to know what they got to pay monthly So in Latin America It was these Electra appliance stores that created the easy payment plan and that happened 20 or 30 years ago way before 95% of Latin Americans could ever qualify for a credit card and by the way They still can't but these days everyone and his brother has a debit card anyway at these Electra stores There's no going through scads of red tape with a real bank to get a consumer loan
[04:06] Even a guy with no credit at all can get approved in less than a half an hour and walk right out of the store With his TV, you know I've bought stuff in those Electra stores myself and many times they undercut Costco and Walmart So bottom line these Electra stores are a huge success story except guess where in? Argentina now listen to this Let me read you this headline that's been all over the Latin news this week in Spanish, of course, and it starts like this Electra Mexico's largest electronic retailer and a leading financial services company controlled by Mexican billionaire Ricardo Salinas Pallego announced on Tuesday that it's closing down and liquidating its entire assets in Argentina citing a very difficult
[04:53] macroeconomic and business environment that diminishes the viability to do operations in that particular South American country and it goes on to say the exchange currency controls and import and export restrictions limit access to commercial goods while controls on capital flows restrict our investment choices and it continues by saying Argentina's high inflation hinders business planning while labor regulation allows union practices that affect severely our investment environment and here's another key point they say that Unfortunately, there is also a culture of non-payment of debts in Argentina that makes credit business Impractical here and what they're doing is calling the Argentina's dead beats
[05:40] I guess that's the reputation you get when your government defaults every five or ten years, you know And here's another very interesting tidbit They say in this press release that they've been operating in nearly every Latin American market and have found that that in the last ten years The best managed Latin American economy of all is get this Peru who the thunk, huh? Notice they didn't mention the usual first-world wannabes like Costa Rica Panama and Chile Nor did they mention Brazil that supposed super new powerhouse? Hmm and in this article they quote an Argentine market analysis who says quote It's no secret that there's a wave of multinational companies leaving Argentina as a result of government Mismanagement that has left the economy and shambles and a spokesman for Electra says for those companies that wish to stay in Argentina
[06:29] Fine, we wish him well, but we're leaving and this week. Here's a quote from the Wall Street Journal that says Argentina has seen a number of high-end retail brands closing stores and pairing back operations. Those companies include Ralph Lauren Calvin Klein and Louis Vuitton who just got up and left or closed their doors quietly without fanfare In other words, no press release blaming anyone or criticizing the government now Electra is the first large retailer to pull out of Argentina and directly criticize the economic and business environment Says this week's Wall Street Journal. Okay enough said about that moving on now. I'd like to report something I'm sure most people never knew now if you remember last week's show I talked a little bit about Bitcoin since it's gone crazy lately and it's been all over the news and I mentioned
[07:16] It's a good way to transfer money around. I'm not giving investment advice I'm just saying it's a great way to move money around very cheaply. And if you're careful pretty damn anonymously anyway if you've been watching any of that crazy Bitcoin news lately You'll see that every day a couple of new businesses start taking Bitcoin as payment and you may have noticed that there's a university In Cyprus a private university. In fact, it's supposed to be the highest-rated university on the whole island That's now taking bitcoins for tuition payments Now I think when most people read that they said, okay, that's cool But it's also Cyprus which had that big economic crisis and had to take that big bailout, right? Hell the place practically slipped back into the sea so with all the fear uncertainty and panic in the traditional financial systems there and
[08:03] rampant government corruption and mismanagement That's perfect fertile ground for alternative currencies like Bitcoin and you knew that already, right? But here's what you didn't know the press releases that have been going out saying the Cyprus University is the first one to take Bitcoin payment is totally wrong In fact, the first university in the world to take Bitcoin payment was and is the University of Francisco Maru Keen in Guatemala City is called UFM The fact is they never bothered to put out an international press release So who knew except those affiliated with the school and the student body and you know That's really progressive, but that's not all not only has that university been taking Bitcoin payments for months now They're also the very first university in the world that teaches an accredited business course on Bitcoin and the use of alternative
[08:54] Cybercurrencies and here's a little tidbit about that University lest you think it's some third world rat hole Well, it's the highest rated private university in all of Latin America and all of its credits are transferable to any and all first world Universities, it's also one of the most expensive universities in Latin America Which means it's about 20% the cost of the most expensive US universities Not to mention it carries no debt at all zero It's fully endowed and always no money to anyone and why am I mentioning this two reasons for one? the education is first rate and half the students are foreigners from the first world and Two it just so happens that the guy who teaches that Bitcoin course the first accredited one of its kind in the world Well, he first came down here to one of my seminars about a year ago
[09:42] He'd never been to Latin America before and once he landed he never left and like he said to me last time I talked to him a few weeks ago I never would have thought in 10 million years that I'd ever be doing this since like he said I never got up in And he's getting paid for it, and he says he's having the time of his life So there you have it all you ex-pat gunna bees who are shooting for being an English teacher Why not shoot for being a college professor? Why not it pays about three to five times as much oh and by the way when he came down here He knew about zero Spanish and now a year later. He's about a three or a four But because he's teaching at a private university He doesn't have to know a bit of Spanish when you teach at a private school. You'll be teaching in English So take note all of you expat wanna bees and gonna bees up there in Cleveland if you have any kind of special skill at all
[10:33] There's a good chance you could hook up with a private high school or university and start a brand new career and about the money I've been told that just getting a part-time teaching position at a university could easily net you 50 to a hundred bucks an hour I'm talking about actual classroom time now your prep times your own of course like for any teaching job But if you taught let's say five hours a week you could easily make 250 to 500 dollars a week Which is really big money for a one or two day weekly classroom schedule And that's just for five measly hours because remember the average Latin makes three to five hundred bucks a month For a 44 hour work week so anyway That's another working option for you if you don't want to get paid standard Latin salaries So if you have a special skill you can teach bring it on down and try your luck
[11:20] Now a while back I did a little report about consumer protections down here in Latin America And if you remember I said they're pretty much aren't any it's buyer beware all along the line however I did mention if you went to a reputable chain store especially one that's been transplanted down from the first world like Walmart or Ace Hardware or Sears or that big Mexican appliance chain store I mentioned earlier called Electra well he bought something there Let's say for example a Cuisinart, and it said on the box There was a three-year warranty though It's right there in black and white and color printed like everything these days in good old China When you get to the checkout counter you better ask how long the guarantee really is because oftentimes It'll only be one or two years, and if it says one year on the box it might only be six months
[12:06] However at the checkout counter They'll print right on the receipt how long the guarantee really is so you'll have something physical in your hand that proves it And they'll honor it, but I'm talking about things you buy from a store that are name-brand products Let's say a computer or flat-screen TV or even a car if they offer a warranty They'll give it to you, but it might not be the one that's advertised you have to ask and you have to look at the fine print But you knew that already right which brings me to another point new fresh Gringo's and expats often ask the question What about consumer contracts down here in Latin America for example when you need to get a smartphone and the internet to go along With it when you do a contract for a satellite TV service like Sky TV Or when you're renting an apartment or even renting a mailbox at mailbox, etc
[12:52] Yep Those are all things Gringo's are gonna have to deal with when they get down here and you'll have to sign Contracts for things like that and like I said so many times before Don't try doing any of that stuff without a lawyer because even with a simple thing like renting a mailbox for a year at mailbox Etc for the local government post office. You're gonna have to show them some ID or some reasonable facsimile thereof Let's say an international driver's license if you're paying cash, that'll work But still they're gonna want two or three personal references people that live in the area and in some cases Especially if you're doing a cable TV rental, there's a good chance They're gonna call those people up So they better know who you are at least and even though you've got the gringo advantage your references Really shouldn't be gringos unless those gringos speak Spanish because if they don't it'll just delay things when they get called up and the business
[13:42] That's checking figures out. There's a communication breakdown, you know Then they'll just ask for another reference in Spanish, which will surely delay things hours or maybe days And if you're a new green gringo down here It's gonna take you a couple of months to develop friendships enough so that people will be References for you and don't get me wrong They're cleaning lady in the gardener and the guy down at the corner who chops coconuts with that big machete They'd all be more than glad to be references for you In fact, it would be an honor except since they haven't got two pesos to rub together They won't be good enough references for the cable TV company who remember are leaving some hardware at your house Like a little cable box and they need to secure that little $35 investment whoopee, huh? Down here for things like that. They want references that are at least stable and upper-middle-class
[14:29] Upper middle-class latin style that is meaning someone making more than five or six hundred bucks a month Which begs the question how do you even get started or settled in down here? If you need a cosigner called the Theodore and a couple of references every time you sign a little contract For a simple thing like a private mailbox or one of those burglar alarm companies that charges 20 bucks a month to monitor your motion Sensors yep, even a stinky little contract like that's gonna need a couple of references and about 10 pages of carbon copies This is Latin America. You know, well again The only way to do that is to have yourself a personal lawyer Then he'll do all that for you including providing those personal references You don't have and what about those other consumer contracts? For example, if you want to pay for a laundromat or a bedroom set on time the kind of setup that made that electric company
[15:16] I spoke about earlier so large and famous throughout Latin America Of course, I never recommend buying anything on time except for huge items like land housing and commercial property And even then for the land part, you should pay cash if at all possible But if you are a little cash strapped and do need a bedroom set or a washer dryer You too can go to Electra and get financed right on the spot, too They'd love to put you on the payment plan for 50 to 100 percent interest a year But again because you're a foreigner and you're new in Latin America and don't have any cosigners, Fia doors or references You're gonna need your lawyer and yes, he'll be glad to help you do it and regarding lawyers always remember this Once you've had a lawyer do a few successful operations for you It's never recommended that you switch around just for price or because your buddy says he has a good lawyer or because you've met some
[16:07] Lawyer at a Kinsey and use party even if your new runway model girlfriend's brother is a lawyer Don't switch once you've built up that trust your guys really gonna go to bat for you I'm telling you just don't do it unless of course your lawyer sleazy and you got ripped off But like I said once you've done some good deals with him No matter how small like for example helping you get a simple bank account or a driver's license Even if it took four times as long as you thought it should don't give up on him Stick with that guy become his friend send him a Magdalena on Christmas. It's only three bucks By the way, a Magdalena is kind of a coffee cake naturally named after a Catholic martyr Mary Magdalene After all, this is Latin America Anyway, the more deals you do with the same lawyer The more he'll be bonded to you because after all if you're off the tourist trail
[16:55] You might be the only gringo he knows now sure you don't know what he's saying behind closed doors about you But chances are you're his star client and he's actually name-dropping you once in a while I mean, how many times does that happen to you up in Cleveland? Oh, and by the way when I said that things might take four times as long that's very true However, they won't cost four times as much because the lawyer's clock won't be running 90% of the time he'll tell you a price and stick to it No matter how long some kind of legal operation or legal work takes so I always recommend if you plan on seeing your lawyer It's not gonna be for a half hour. It's gonna be for a half a day So bring along your Kindle or your iPod and load it up with audio books or the expat files living in Latin America That always works and another thing if you're gonna sign one of these payment plan contracts
[17:43] If you're buying a sofa or a TV set, which I don't recommend of course But you know, whatever floats your boat, right when you bring your lawyer in on the deal Don't expect him to try to talk you out of it Even if it's a hundred percent interest a year, which is kind of normal down here But wait now you're thinking isn't he supposed to warn me about things like that Wouldn't trying to talk me out of that be good advice well since he's Latin American too and Like every Latin up to his eyeballs in credit and debt He's not gonna try to talk you out of it or give you an argument against it The debt culture is pervasive down here so much so that people think it's normal In fact, it's a badge of honor down here to have as many credit cards as your wallet can hold Even if all of them are maxed out sound familiar But know that only about 5% of Latin Americans even have credit cards
[18:32] Oh about 50% of the rest of them have debit cards, but credit cards. No, the society's not that sophisticated yet It's lag time, but it's creeping up fast So back to the point I made before Appliance and furniture stores down here like the electric stores I was talking about make most of their money through finance plans Just like General Motors does with GMAC you think they make their money off cars. Nope. They make it off financing those cars Leasing those cars and you probably guess this spare parts with about a 500% markup Now those appliance store chains like Electra down here also make a ton of money off Extended warranty contracts which like I mentioned in a previous show you almost never make out on since appliances are meant to last well
[19:20] beyond their extended warranty contracts, but you knew that already right and Latins they have no clue. They're not a very curious society. So they don't investigate a thing So when might Consumer Reports magazine land down here? And if it does will anyone read it? Well, I understand there's a Spanish version of it in Mexico though. I've been to Mexico a number of times I've never seen it on the newsstand In fact, I don't know a single person in Mexico who's ever heard of it or read it So I guess that answers that question for now Now one of the odd things you'll note when you go into one of these appliance stores Is that the salesperson will always assume you're gonna pay on credit that is on the payment plan instead of cash That's right As soon as you walk into an appliance store and pick up that washing machine
[20:08] The salesperson won't even ask you if it's cash or credit because almost no one pays cash So the first thing they'll do is to lay out the payment plan option And that's why with even some of the biggest appliance outfits if you pull out the cash you can squeeze a 10 15 or even 20 discount out of them and normally it's not advertised you say cash and what kind of discount can I get? And they'll come up with one But again, if you want to go on that payment plan, which I don't recommend Then along with a lot of other personal dats and stats you'll need to give them a few outstanding personal references, too People who have decent steady jobs with good credit references themselves And when you first get here and for some months after you won't know any people like that And don't think you could get away with putting down a few gringo references you've just met during happy hour at the local expat bar
[20:59] Since your references will have to give sedula and or local personal identification card numbers on the contract, too Which gringos don't have unless they've been down a year or so and have received their residency now even though I don't ever recommend you buy anything on time down here on the payment plan because You'll really get creamed with the interest rates The fact is occasionally you'll have to sign a consumer contract Like for example in the case of gringos who first come down here and realize that all the local cable tv channels Are in spanish and although there are a lot of local cable services and they're dirt cheap Usually anywhere from 10 to 20 bucks a month Like I said, the fact is they're almost all in spanish, which is great if you want to learn the language fast But 95 percent of us gringos and expats just don't have the patience for that dribble
[21:47] I mean, let's face it who could plop themselves down in front of a tv for eight hours a day Wait a minute north americans do that all the time, don't they? Anyway, well, the truth is if you could do that plop yourself eight hours a day in front of latin tv in a month You'll have greatly increased your language skills guaranteed Now I know what some of you are thinking you heard me say on a previous show that many of the first world north american Popular cable tv channels are down here on latin cable tv It's like fox warner's e-entertainment the history channel vh1 The cooking the tattoo and the sci-fi channel they're all down here But most of them like nearly all the first world movies too as well as hbo documentaries and special presentations
[22:33] Are dubbed in spanish with only a tiny few in english subtitled in spanish So yes, you can watch the voice in america's top model Dancing with the hasbens special shows like empire state and the walking dead featuring the kardashians They're down here. All right, but more often than not they'll be dubbed in spanish And new fresh expats and gringos who've just made it down here often really get quite irritated about that fact though I always say one. It's a great way to learn your spanish and two It's a great way to wean yourself off of mind-numbing junk You should have never been watching in the first place, but that's me Though also I realize that gringos coming down here find themselves with a lot of time on their hands A lot of time on their hands and when you first come down here your life isn't quite settled at all yet
[23:22] That's going to take some time Maybe up to a year till you really fall in your groove And in the meantime, I can sympathize with the fact that you can't go cold turkey You need your methadone for a while. I get it Some of you need your sports channels david letterman and porno channels in english. So how do you do that? Well, that's easy. You just contract one of the satellite services like sky tv Now that service has so many channels that you practically can't surf through them all without getting a headache and yes Nearly every single channel has an english spanish option. And if you like watching sports I'm told by gringos who are afflicted with that illness that it's like dying and going to sports heaven And personally I like watching sports channels about as much as I like watching the kumbaya channels
[24:09] And on that note if you have satellite tv you can choose from about a dozen or so false profits Anyway, if you sign up for one of these services like for example sky tv Which by the way is a bit more expensive than the local cable channels since they do stick a tiny satellite up on your roof Which by the way, you often don't have to pay for because they're always running specials with free installation Anyway, the basic service which is still like 60 or 70 channels That runs about 20 bucks a month and the deluxe package which adds about 25 to 50 movie channels And laps on a few more dozen sports and entertainment channels, too Well, that'll cost you about 30 a month Then of course there's other packages along with it like pay-for-view and all that The hitch here is that you'll have to sign a contract for a year or so
[24:55] And note you don't have to pay in advance They of course want to deduct it from a bank account or a credit card Which you might not have or might not want to give them access to and there again is why you'll call your lawyer And he'll do all that for you. That is be the co-signer again The fee adore give you your three references and I suggest here when you sign a contract like that Always elect to pay by depositing monthly your payment at one of the local banks That way they have no access to anyone's credit card or bank account Neither your lawyer's debit or credit card or the debit or credit card that's attached to your essay corporation If you have one and of course, you know those essay corps are highly recommended And i've talked plenty about that stuff on other shows. So go back and check it out
[25:40] Anyway, try to avoid having that satellite tv company or any company for that matter Deduct anything from your credit card or bank account monthly for one thing It's hard enough to read those bank and credit card statements in english The way they slap the interest in all those charges on you imagine trying to decipher that stuff in spanish Forget about it And though cable and satellite companies and such would much rather prefer Their payment coming out of a credit card account or bank account since they always get their money and the bank slams you with interest and other credit card charges But the nice thing is they'll also allow you to direct deposit the monthly charge at any local bank They'll give you an account number and you just put that on a deposit slip every month and give them their 20 or 30 bucks
[26:26] Now many of these contract services won't offer that right up front until you say well You don't have a credit card or a bank account then they'll say okay Well, then you can do direct deposit which is obviously your first choice and their last choice You get the idea and by the way for you first world tv addicts sky tv is not the only satellite tv service down here There are quite a few of them It's just that I know some people who have it and expat eddie has it at all his restaurants So he gets a corporate deal with him, you know And new expats and gringos always ask me if you sign a contract like a cable tv satellite or internet service contract like that They want to know because it is a pretty detailed contract and they can't wade through it Their bad spanish will never let them do that and I know just what they mean
[27:13] Anyway, they want to know if it's like a consumer contract in the states. That is by law you get a 24 hour 48 hour or in some instances a 30-day cooling off period where you can legally just back out of the deal completely Oops, can't talk about that right now. We'll get right on it next show You've been listening to the expat files living in latin america coming to you twice a week from somewhere south of the border Email me the expat files at gmail.com And don't forget to check out expatwisdom.com to sign up for your free reports on latin america See you next time nos vemos