You can make your house, your assets and your salary or garnish. They're your friendly credit card companies usually owned by banks. Any delay can increase interest rates on many levels, add late charge who have no legal limits and then break loose hell, because all of your creditors that you do business with, if their policies calls rising interest rates and higher payments you know are in trouble. You can join forces and destroy a person's life.
Some time ago, banking lobbyists persuaded adoption of laws that can replace the three national credit reporting agencies, financial institutions with information. This beat is in the face of privacy. Today your financial records are shared by all three national credit reporting agencies on a monthly basis. This information exchange of financial records has grown to include utilities, telephone, insurance companies, landlords, and more. If one of your creditors realize that you are in arrears with another company, they have the ability to change your interest and late billing rates.
There are no legal means to stop them, but with the recent legislation they have their clients reasonable time. Can have this exchange of information between credit bureaus and lenders and in some cases have a domino effect. As each lender aware of any delinquency in any other creditor, they may charge interest, late fees and payment amounts be increased as part of the "risk based" rates charged by their own standards. Because credit card debt is like walking through a littered field of tall grass with rattlesnakes. Only one misstep and you'll get something. Odds are in favor of the credit card that people slip on a payment and then snapped the trap.
Most banks do not manage their credit card business from their banking transactions. Either to settle them there card business outside their bodies, which is not the way advertised, or they hire an outside firm to manage the card business for them. I wonder how much pride banks have in this business. Have they not, that the public know that they are in this business? Do they fear for their safety when the wrath of a customer that just when their collectors rush to raise its interest rate to 32.9% and late charges like $ 39.00 or increased their customers? Are you afraid of retaliation from people who have turned their lives into a living hell as a consequence of being pushed into a corner with no legal means to defend themselves? I think so. Banks justify their policies by claiming their interest on a "risk-based" system of values, the calculated fair they claim to be. Did they tell customers about the "risk-based" system when they issued interest cards?
I saw a congressional hearing in Washington D C. a few months ago. That was before the recent legislation was passed, that is probably benefit to credit card customers. From, read about what I passed the usual watered down version. The congressional committee was chaired by Senator Levin. As with most of these meetings, many of the chairs were empty.These CEOs do not act like they were the least interested in the dangers of their systems to the public. They agreed that interested parties the obligation to read the rules in their applications. The new bankruptcy law was not discussed. With the new legislation in force these companies to have at home as an accessible facility for them outside of bankruptcy if they obtain a judgment. The group testify before this was made by credit card victims.
They had some real sad stories about how they were treated and the hell they have been through, hunted during these collectors and threatened them. Some of the members of the committee seemed to be moved by their testimony seriously. A lawmaker said he could not wait, the CEOs indicating he would ask some hard questions question. I watched to see his reaction when the bankers and legislators testified in milk toast.
I am a citizen interested in the ways our government. I testified four times before congressional committees. I was underwhelmed with the attention we received in each of the hearings. People go in and out. One maybe two or three committee members present. Our first meeting was in front of Senator Danforth Committee, and he was the only one present. All of these hearings were about railroad safety for employees and the public. The only meeting, the committee had full participation, was the one that the media were visited in cameras. One thing I've learned from this is that the cameras have a big impact on the participation committee. Not c-span so much more, but media cameras.
I would like to quote some good advice from Mary Hunt articles in women's magazine, March 2008. If you have a credit card:
Stop adding purchases lowering your interest rate, call them when you present them are doing it. Pay is paid well before the due date as a liability, it does not give the payment to another debt. If you do not add purchases, you will see amazing progress.
And Stay Out: A card that you pay each month all you need to look at the long-term rate, not the teaser that will soon disappear. Never take a cash advance. The fee plus the high interest rates it's not worth it. Get your name on the credit card solicitation lists at the three major credit bureaus....
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