Credit Cards
recommended by
our experts

Get Cards
Credit Card eZine - News and Articles about Credit Cards

Credit Card eZine - News and Articles about Credit Cards

Get even more information on credit cards? Read our Credit Card eZine. The section is regularly updated by our specialists. Learn all the financial tricks. Know the pitfalls and hidden bonuses. Find out how to transfer balances and accumulate points. We will tell you about the latest offers on the market.Get your credit card education and make the most out of your plastic.

Invalid Debt Claims

Monday, October 15, 2007

Debt collection agencies are expected to draw more revenues in the coming years from defaulting credit card holders and other credit consumers abusing their paying obligations. There are a few fair reasons for the funds rise with debt collectors, no doubt, but state attorneys are surprisingly receiving more and more bitter complaints about the collectors' practices.

It would be expected, however, that credit card deal makers who fall victims to debt collection companies would be discontent with their tough and humiliating ways, but there seems to be another cause for concern. What is it and what changes does it bring into legislation?

Let's fist mark out the main reasons for the revenues rise in the debt collection industry.

The basic reason is connected with the general increase of credit card deal makers displaying credit insolvency and thus huge outstanding balances. Statistics shows that US credit consumers will accumulate approximately $3.2 trillion in credit debt, giving debt buyers and collectors a highly profitable ground.

Then, it has always been assumed that credit card debt is a complete fault of irresponsible customers with poor spending habits and bad credit management. But as lawmakers are trying to find and establish some balance between customers and banks, they have detected some predatory actions on the part of the latter.

As a matter of fact, credit card companies have the legal right to raise the interest rates and fees on your deal any time and for no particular reason. If you pay your credit card bill too late, you are charged late payment fees, as detailed in the fine print. But you would be most upset and outraged when they punish you for paying before the due date or even on time!

Thus, the company is free to set a new interest rate on your credit card even if you are a good credit risk and own an unsecured credit card. With the creditor's knowledge of the potential risks drawn by the rate increase, their policy seems to be purely self-profiting.

All this creates dissatisfaction among credit cardholders which, however, has become common already due to inability to change the credit company ways.

A much more serious concern accompanied by complaints is caused by the aggressive attempts to collect the debt customers didn't really make. A recent poll has shown that the growing number of complaints is related to collecting the debt which is the result of identity theft.

The situation has attracted close attention of lawmakers who have considered the introduction of a new law under the circumstances. The new bill is aimed at prohibiting collectors to proceed with their activities if the customer claims he is victim of identity theft. The collector is then to investigate the case and if it proves to be true, the collection activities must be stopped and the correct information sent to credit bureaus.

While the effect of the soon coming law is still uncertain, there is yet another burning issue to occupy the minds of lawyers - the dramatic rise of the debt buyer industry and the increase of consumer debt caused by unfair credit companies' policies.

Share Opinion:
del.icio.us   digg   Furl   YahooMyWeb   Propeller   Reddit   Google
Comments not found
 

If you have something to say, please leave your comments below.

Your Name: *
Your Email:
Your Comment: *
Enter Number from Picture: * number

* - Required Fields Add Comment
[December 05, 2011]

In a time when banks have begun charging monthly debit fees, baby boomers may be able to find discounts based on their age and experience. Our research reveals some of the best checking accounts for consumers over 50 - and the best part is that they`re free!

Comments (0)
[October 12, 2011]

All data shows that the woman entrepreneur is on the rise.This could be because women tend to work well in groups and are great multi-taskers and communicators. In addition to that, women are also making riskier decisions when it comes to financing their businesses, according to a recent survey by PNC Financial Services. These decisions may have an impact on the longevity of these female-run businesses.

Comments (0)
[September 07, 2011]

With the economic upheaval, obtaining a credit card seems a distant dream, especially if you fail to qualify for any credit card application. Nonetheless, turning into an authorized user, i.e. attaching yourself with a good-quality credit customer`s account and the consent to use it, would boost your credit scores swiftly, and jump start your credit history.

Comments (0)
* The CreditCardSpecialist.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. CreditCardSpecialist.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the CreditCardSpecialist.com website are property of their respective owners.
We do our best to maintain the information accurate at CreditCardSpecialist.com. However, all the credit cards information is subject to change and presented without warranty. See the up to date credit card terms and conditions on the secured credit card application page. Note that CreditCardSpecialist.com may be compensated by credit card issuers when visitors apply for a credit card through the links on this website.
CreditCardSpecialist.com, an independent, advertising-supported website, receives compensation from the companies whose offers appear on the site. This compensation impacts where and how credit products appear on our site, including, for example, the product listing order in which they may appear on separate pages. CreditCardSpecialist.com does not present or review all available credit or financial offers.
Disclosure: Not an access card.