The State Of Credit
Joe Nocera has a post on his blog by an anonymous banker who tells the truth about the incoming credit card business crash.
The Worst Is Yet To Come: Anonymous Banker Weighs In On The Coming Credit Card Debacle
The line that I like best about that article is when the anonymous banker wrote:
And credit card rates, which are quite often above 22 percent, is piracy.
Piracy indeed, and now the government has sanctioned this piracy for another 18-months. See my previous post.
Just imagine an interest rate that high (or at 31%) and then the bank turns around and uses the double-billing method to screw you even more.
Sorry consumer, no justice for you for another 18-months — complimets of your humble servants, the Congress. LOL! Sorry, I just couldn’t help myself.
New Bankruptcy Law
Well, greed can also be detrimental to the person or institution that practices it. As the banks have found out. In their zeal to force consumers to keep paying their credit cards while in bankruptcy they forgot to include mortgages.
So guess what people who have gone into bankcruptcy did?
You guessed it (come on that was easy). According to a recent post on Creditbloggers.com: Bankruptcy Law Forces Consumers Into Foreclosure
After a $25-million lobbying campaign in 2005 by Bank of America, Citigroup, JP Morgan & Chase and Washington Mutual, Congress passed a law forcing people to continue paying their credit card debt even after they file for bankruptcy. The banks got what they had wanted…and more than they had bargained for.
What wasn’t protected under the new bankruptcy code were mortgage payments. So now, instead of defaulting on their credit cards to keep their house, hundreds of thousands of Americans may be forced into home foreclosure, according to a story by Bloomberg News.
