Posted on
November 25, 2009
at
2:46 am
Hi what is that Obama debt consolidation plan about? Is it a low interest loan or something else?
Posted on
November 25, 2009
at
2:53 am
Hi what is that Obama debt consolidation plan about? Is it a low interest loan or something else?Hello, no it's not a loan, it's a law - a meeting was held several months ago by President Obama with some leading creditors, and it talked about transparency and accountability.After which, the Credit Card Accountability, Responsibility and Disclosure Act of 2009 was signed into law.
Posted on
November 25, 2009
at
3:05 am
Hi what is that Obama debt consolidation plan about? Is it a low interest loan or something else? To expound on what Aurora has said - the Credit Card Accountability, Responsibility and Disclosure Act tackles the following:-Interest rates: If the consumer's payment is 60 days late, the credit card company can increase the rate.-Penalty fees: Unless the consumer has asked for an over-limit fee, the creditors can't charge the consumer for it. Banks may not charge late fees if they were also late in crediting a payment.-College students: Credit card companies may not market to people under the age of 21, without parental permission, or verification of their ability to pay.
Posted on
November 25, 2009
at
3:15 am
And that law takes effect in less 3 months time, February 2010.
ck Rep Points:
Posted on
November 25, 2009
at
3:16 am
Just to add to Desmond's: the Credit Card Accountability, Responsibility and Disclosure Act also tackles the following:+credit card companies must give the consumers 45 days before they can up the interest rates.+the consumer's payment must first be applied to the highest interest rate balance.
Posted on
November 25, 2009
at
3:17 am
Oh thanks guys, a law...But why is it called debt consolidation plan? I mean does it have anything to do with debt consolidation at all?
Posted on
November 25, 2009
at
3:30 am
But why is it called debt consolidation plan? I mean does it have anything to do with debt consolidation at all?Well....seeing that the unfair practices of the credit card companies being the reason for a lot of past due and unpaid accounts - Obama and the creditors themselves realized that they're losing business that way and so a law to regulate them was put into place.The credit card crisis gave birth to the debt consolidation business.
Posted on
November 25, 2009
at
3:33 am
I agree with doctor crane -Also, in that meeting, the creditors themselves announced their willingness to negotiate consumer debts. It wasn't the case before but as was said, they are losing business, so they'd rather they collect something rather than nothing.Many creditors don't like to work with debt consolidation (credit counseling & debt settlement companies) before, but some of them have changed their tune.
Posted on
November 25, 2009
at
3:35 am
What is a debt consolidation plan? Would the meaning change if it's just Debt Consolidation -- minus the word "Plan?"
Posted on
November 25, 2009
at
3:43 am
What is a debt consolidation plan? Would the meaning change if it's just Debt Consolidation -- minus the word "Plan?"I think debt consolidation plan is referring to the Debt Management Plan (credit counseling) and when you say just debt consolidation - it could also refer to debt settlement.
