Wash Post: Credit Card Penalties, Fees Bury Debtors

The idea is that the CC companies claim that there is no security in the loans they give, so they should be able to charge higher rates. The proof that there is no security is the relative ease, until this week, of filing BK.

If the BK filings are taken off the table, then the CC companies can't continue to claim that the loans are not secured. The security they seek comes to them in the form of the borrowers being compelled to repay the borrowed money and not skip out.

I have no problem with making it more difficult to file BK on CC debt, but we should get lower rates as a result. Whether or not we will remains to be seen, but I suspect lower rates should be coming for good borrowers with no lates. This is even something that we should see through legislation if the banks don't do it voluntarily.

Which, of course, explains why secured credit cards have a 5% interest rate...NOT.

ROFL. Do you believe in the Easter bunny too?

Anyone who believes that the billions of dollars in additional income the credit card companies will receive as a result of BARF will go to reduce interest rates instead of going to further increase profits is an idiot.

Perhaps. Doesn't matter to me what they do with their interest rates since I never pay a penny of interest on my credit card.

Some people will choose to complain about that, just as they choose to spend their whole lives complaining about how other people are making their own lives successful instead of working to improve their own. (Then they wonder why they're still living paycheck to paycheck in their 40's.)

Me, I'll just choose to buy more stock in those companies, and get on with my life.

I can't wait to get my check for $400 when this bill becomes law.

The so-called statistics on bankruptcy filings are as unreliable as a Yugo. It depends upon who is providing the stats, who paid for the research, and the underlying reason for the reports. Credit card issuers for their own interests, newspapers and periodicals for attracting readers, and individuals who profess to be all-knowing. I don't believe any are correct based on a stories similar to these few, and there are hundreds.

Georgetown University-Single fastest growing cause of bankruptcy=Gambling.

Health Affairs-Uncontrolled gambling, Alcohol & drug abuse, credit overextension a major cause.

Salt Lake Tribune-Credit card debt.

NY Times-50% due to medical emergencies, rest due to job loss & divorce.

Seattle Post-Intelligencer-Credit card over extension.

As to medical causes Visa says 15%, SMR says 20%, Gallup 28%, Associated Press 50%. AP further, says medical debt between $10-$18M. That doesn't match up with their $41M average amount discharged.

Average age of bankrupt-SMR in one report says 38, in another 25-44.

Financial debt per household-$72M+

Number of bill-paying households needed to compensate for 1 bankruptcy3-46. Both figures are in SMR reports.

It would appear that those spouting stats fall under the "Figures lie & liars figure".

IMO I believe that CC issuers bear some responsibility for their endless solicitations and encouraging debt.

Call your Congressman, don't bitch to me.

If the credit card companies said that they were not protected and they deserved high rates, then they now have the protection they claimed to not have before. If they are protected now, then the rates should come down. This is a matter for the legislature to handle. We call it consumer protection.

And it follows that Congress will promptly respond, because we all know how consumer friendly and fiscally responsible they are.

"Thoth" wrote

People impressed by the marketing campaign of the Republican Party?

Hmm.

In a perfect world, which sadly we don't have, debtor's prison would be resurrected, and those who fail to pay their debts would spend some years paying them off in prison.

Gives a new meaning to "personal responsibility", I should think.

PWB