What Does Credit Card Bailout For Consumers Mean?
Posted on July 8, 2009 at 1:22 am
matthew levi, blur is talking about the law that's called
Credit Card Accountability, Responsibility and Disclosure Act by the way or the (CARD) Act 2009, which forces credit card companies to do the following:
-(credit card companies must) give the consumers 45 days before they can up the interest rates.
-apply the consumer's payment first to the highest interest rate balance--and not to the interest.
Posted on July 8, 2009 at 1:27 am
Just to add to what everybody's said and speaking of bail outs and salvation, the new law which is effective February 22, 2010, would also put an end to the unfair practice of (the creditors) raising the interest on all the other cards, if they've learned that you've defaulted on one card.
Posted on July 8, 2009 at 1:34 am
I also think that the term bail out in this topic originated in that economic stimulus package of 2009...to BAILOUT or prevent the economy from further sliding down the recession road.
Posted on October 6, 2009 at 9:28 pm
I believe what a credit card bailout also means is that more banks are becoming more lenient especially in payment arrangements with their consumers who've fallen behind on payment. I think I read it here on the forum somewhere that HSBC has been more forgiving in terms of debt settlements with clients. They are willing to cut as much as half of the debt that the cardholder owes.
Apparently a bailout would mean that a creditor would rather receive a meager amount than none at all.
Posted on October 8, 2009 at 12:14 am
The credit card bailout may spell a good thing for consumers but the credit card companies have other interests in mind. As they allow debtors to settle for less than they actually owe, the government will then be forced to intervene, much like what they did with mortgage companies and auto companies in the past. The creditors will attempt to recover the percentage that they lost thru people's tax money--which means that they'd have less to worry about in terms of getting back what was lost from them, and instead gaining their losses from all taxpayers!
Posted on October 8, 2009 at 4:37 am
And following the same train of thought that Wonder Girl and Purple Cow have had --- The credit card bailout would be more beneficial to consumers who are really unable to sustain the monthly payments that they have.
If the government does indeed become a part of the bailout process, then all taxpayers would be affected by what will happen--even if they have also been making their regular monthly payments on all their bills. The credit card companies, at the end of the day, are to benefit from this most--not the consumers.
Posted on October 8, 2009 at 4:54 am
Given all that has been said about the credit card bailout, what arrangement do you think should I set up with my creditors then?
Posted on October 11, 2009 at 7:24 pm
With the presence of a credit card bailout, I believe you can arrange for a debt settlement with a third-party company or hire the services of a credit counselor. Keep in mind that each of these methods work best with different types of a consumer's financial situations.
Posted on October 19, 2009 at 3:05 am
what do you mean? what method works best with what?
Posted on October 19, 2009 at 3:27 am
Debt settlement - works best with delinquent accounts with debt amounts of $10k or higher.
Credit counseling - works best with accounts that have lower balances.
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