Browse by Tags

• 30,000 consumers weigh in on abusive credit card practices

  Posted Jul 25 2008, 07:23 AM by Karen Datko
  Filed under: Debt, Banking, Credit, Consumer Affairs
  Rating:

  This post comes from Joseph S. Enoch at partner blog ConsumerAffairs.com.

  More than 30,000 consumers have deluged the Federal Reserve Board's public comment system with opinions on the agency's proposed rules to addresses abusive credit card practices, according to the Consumer Federation of America.

  This is the second largest number of public comments the Federal Reserve has ever received, trailing the reform of the mortgage brokers, said Travis Plunkett, legislative director for the not-for-profit federation. The public comment period ends Aug. 4.   Read More...

  Discuss ( 4 comments) 4,130 Views Digg this | Email this | Link to this

• Bankruptcy law hurts consumers and lenders, reports find

  Posted Jul 22 2008, 11:34 AM by Karen Datko
  Filed under: Housing, Banking, Credit, Consumer Affairs
  Rating:

  This post comes from Martin H. Bosworth at partner blog ConsumerAffairs.com.

  Two reports released this week show that bankruptcy reform passed in 2005 -- rather than helping consumers -- actually costs consumers in the form of more credit card debt, and may be causing greater losses to banks due to increased foreclosures.

  According to a study by Michael Simkovic of the John M. Olin Center for Law and Economics at Harvard Law School:

  Supporters of the law claimed that it would benefit consumers as well as creditors, because reducing the losses faced by creditors would lower the cost of credit to consumers. ... The data suggests that although bankruptcies and credit card company losses decreased, and credit card companies achieved record profits, the cost to consumers of credit card debt actually increased. In other words, the 2005 bankruptcy reforms profited credit card companies at consumers' expense.   Read More...

  Discuss ( 18 comments) 3,345 Views Digg this | Email this | Link to this

• Floating due date snags Chase, Citibank customers

  Posted Mar 18 2008, 10:03 AM by Karen Datko
  Filed under: Debt, Banking, Credit, Consumer Affairs
  Rating:

  This post comes from Joseph S. Enoch at partner blog ConsumerAffairs.com.

  Consumers complain that Chase and Citibank are routinely changing the due dates on their credit card statements from month to month, often making customers with automatic payments late -- saddling them with late fees and higher interest rates.

  "(Citibank) moved my due date to cause me to be late and give them the ability to charge a late fee and move my rate from 3.99% (for the life of the balance) to 24.44%," wrote Jeff of Noblesville, Ind. "I have always paid electronically on the 24th. ... It sent my monthly bill for Citibank from $211 to $495.”

  While exact numbers are difficult to quantify, ConsumerAffairs.com has found numerous complaints, some going back as far as 2001. Consumer advocates say the banks' tactics are greedy, unnecessary and more than coincidence.   Read More...

  Discuss ( 5 comments) 946 Views Digg this | Email this | Link to this