Help for Struggling Consumers from Unlikely Source
Credit card companies are trying to cut losses by helping consumers…
In a dramatic shift in attitude, credit card companies are looking for ways to help consumers during a struggling economy, including new ways to collect what they’re owed. Bank of American has made bold moves by waiving late fees, lowering interest rates and even decreasing balances for more than 500,000 cardholders who are struggling with their accounts. Other companies have taken similar actions.
Financial experts are predicting that the credit card industry will be the next segment to suffer from the stress of over-extended consumer debt as an increased number of cardholders are in danger of defaulting on their accounts. As a result, those who can demonstrate hardship and meet certain guidelines may now be in a better position to ask credit card companies for help. Financial advisors, however, note that the credit scores of consumers who accept an offer to forgive debt will be lowered and potential lenders will see it as a red flag.
Help is also coming by way of new government regulations that require companies to make their monthly billing statements easier to read and understand, as well as laws to eliminate a variety of deceptive practices. The new statements will be clearer and include more detailed information on the total amount of interest paid and any changes in credit card terms and service fees. Card issuers must complete their statement makeovers by July 1, 2010. However, some companies are expected to roll out revamped statements sooner.
* See ASAPCreditCard.com for a list of all the best credit card offers >
April 1st, 2009 at 5:43 am
[…] one side of the fence, you have lenders who are looking for new and innovative ways to recoup more of the money they have paid out. And, on the other side are consumers – a large number who […]