More and more families are relying on credit cards to weather the storm during economic dowmnturns and are being lasered in on by billion dollar credit card companies and their criminal practices. Recent emphasis on this topic has been making headlines but little has been done to crack down on predatory lending practices, in fact our "government" have given them $700 billion...
More and more families are relying on credit cards to weather the storm during economic hardships and are being targeted by billion dollar credit card companies and their criminal practices. Recent emphasis on this topic has been making headlines but little has been done to crack down on predatory lending practices.
The most widely spread tactic used by credit card companies is targeting low income, high debt, or minority markets. On top of offering high interest credit to consumers with a higher debt to income ratio, said lenders often times tack on absorbent fees, added-on products or features and charge excessive penalties. So in essence, if you have not-so-great credit you are a credit card companies ideal client. What a great way to kick the hard working American people when they are down. What is worse, is that when offered these lines of credit, more often than not, they do not give you the amount that they offer. As well, they include "acceptance" fees of nearly one-third of the limit that is given, also processing fees, annual fees, etc. So by the time the card reaches the consumer they are nearly maxed out, most of the time not knowing, and as soon as they use the extended credit they go over the limit and are charged costly penalties.
Many companies that use these strategies to fatten their pockets also fail to follow the guidelines set under the Fair Credit Reporting Act (FCRA). Many reports of collection agencies calling numerous times a day, at late hours or extremely early in the morning, using profanity, false titles, and claims and/or threats to extort payment from the targeted consumer. Little is done to protect or educate the nations public about the laws that are set aside to protect them. A large portion of said companies also include "mandatory arbitration" clauses into their contracts which make it very difficult if not impossible to take action against them.
The fact is, what these lenders are doing is deceptive in nature. They justify their fees and rates by targeting "high risk" consumers and then trap them further into the credit trap. Further-more, they justify the rates, fees and penalties they charge because the consumers that they themselves target are "high-risk". How about them apples?
Additionally, Credit card companies have been adding universal default clauses to the terms of credit card agreements. The universal default clause allows credit card companies to pull your credit report on a regular basis. If you have been late on any payments, a higher interest rate can be added to your credit card or all of your credit cards. This includes even being one day late on your mortgage, car, or utility bill (if it is reported to the credit reporting agencies). This could not only increase the interest rate on future purchases, but also raise the interest rate on the consumers entire outstanding balance. I.E. if you are late even just once on your car payment, your credit card interest rate could jump from 8% to 29% without you ever being notified. This will be very harmful for consumers who are late on even just one payment with a different credit card or payment that is reported to your credit report.
In following articles I will talk more about how to prevent predatory lending, what to do if you feel victimized or targeted, and ways to get out of credit card debt. I will also cover topics dealing with foreclosure, medical bills and the like. If you would like immediate assistance with getting out of the credit card trap visit my website or if you have general questions I will be happy to offer my knowledge and experience.
How Will Debt Settlement Affect My Credit Score?
The most frequent question that is asked is how are credit scores affected while enrolled in a debt management program. Let me first start off by stating that any and every debt relief or management program will negatively affect your score. In fact, anything short of paying off debt in a timely manner will negatively affect ones credit score. Now, that “disclaimer” is out of the way, let’s get to the facts.
What Options Do I Have to Get Rid of Debt?
Thoughts of a looming depression are causing widespread panic for the average citizen, here in the U.S. and globally. While the President conducts secret meetings and aids big businesses (even those that have committed high end fraud), the risk of hundreds of thousands of jobs are on the line. The normal citizens have been (so far) left out of the equation but left to pay for the years of greedy Wall Street capitalization and the like.
Credit Card Companies Crackdown- What Does This Mean For You?
With all of the banks in a panic to reduce their losses to their mostly fraudulent practices, many of the larger lenders are putting into place more restrictions to yet again deter the hard working citizens from escape of the debt trap. Recent news coverage and yet more to come are announcing changes that will affect life as we know it- even for the responsible card holders and especially for the predatory lending practices for high interest consumers today. So be on the lookout and be very wary of up and coming changes to your credit, may it be bad or good.
