Many card companies dumping credit-protection plans

Posted by administrator | 05/09/12 | Tagged Credit Card

Many card companies dumping credit-protection plans
News from USA TODAY:

Credit card holders could soon be saying good-bye to some costly add-on products that promised peace-of-mind during a disaster, such as a job loss.

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And many consumer groups say good-riddance.

Several consumer advocates lump credit-protection plans in the category of an expensive type of insurance that most consumers don’t really need.

All such offers are not dead, though, so consumers on the financial edge should move cautiously when it comes to promotions for debt-protection products and consumer insurance.

Credit card protection plans are under fire for deceptive marketing practices, and the Consumer Financial Protection Bureau has put all institutions on notice. One concern is that the third-party outfits that often pitch these products might mislead consumers.

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Britain’s Credit Card Debt Bomb

Posted by administrator | 05/09/12 | Tagged Credit Card Debt

Britain’s Credit Card Debt Bomb
News from BullionVault:

Don’t believe the hype about people paying off their credit card debts…

ACCORDING to the headlines, there has been a dramatic drop in the use of credit cards in Britain, writes Simon Rose of Save Our Savers. 

“Credit card borrowing shows biggest decline in six years” said the Guardian, with most other headline writers following the Bank of England’s line in reporting that borrowing on cards fell £147 million in July.

The impression given is of consumers retrenching and paying down their credit cards. It is, however, somewhat misleading when you consider that the total amount outstanding on credit cards as of July is £54.5 billion. True, it has been declining gently since reaching £62 billion in January 2010, but that was a sudden spike, the result of a Christmas surge that saw an extra £8.3 billion put on plastic in just one month.

However, the current figure of credit card debt is higher than in the same month in 2007, 2008 and 2009. It should also be borne in mind that it does not take into account the bad debts that the banks have had to write off. Over the past year write-offs have amounted to £2.8 billion. Since the start of 2008, an extraordinary £17.6 billion has been written off. That’s equivalent to 32% of the current outstanding credi…………… continues on BullionVault

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Credit Card Lawsuits Replay Foreclosure Mess
News from LoanSafe:

(Source: By Craig Schneider The Atlanta Journal-Constitution (MCT) — Credit card firms and collection companies are churning out slapdash lawsuits to collect unpaid sums, say exasperated consumer advocates and some judges.

Judges complain that many lawsuits are so lacking in documentation, it’s impossible for them to know who’s right or wrong. Advocates say the companies sometimes victimize card holders by inflating the amounts owed, not giving their targets proper notice, and suing for debts already paid.

“They do get pretty loosey-goosey on documents,” said Frank Cox, the chief magistrate court judge in Georgia’s Cobb County. “When they are contested, most of the time they can’t present sufficient evidence to win the lawsuit.”

The companies defend their practices and accuse consumers and their lawyers of using diversionary tactics and legal loopholes to deprive them of money legitimately owed.

“The vast majority of these cases are accurate,” said David Kleber, a Decatur, Ga., attorney who represents credit card companies and the others that purchase debts. “If it is a volume business, that doesn’t make it wrong.”

Many suits are filed with little more than an account number and a figure for what is supposedl…………… continues on LoanSafe

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Credit Cards and the Law


This Almanac presents an overview of the laws governing the use of credit cards, including the historical background and development of the various credit card systems and the credit protection legislation that necessarily ensued. Margaret C. Jasper discusses the role of an individual’s credit history in credit granting decisions, as well as the legal protections afforded the consumer for preserving their credit rating. Finally, because consumer debt has reached an all time high, with credit card debt being a major factor, a discussion of debt management and collection, and the laws which protect the debtor from harassment, threats and other illegal tactics is also set forth in this almanac. The Legal Almanac Series serves to educate the general public on a variety of legal issues pertinent to everyday life and to keep readers informed of their rights and remedies under the law. Each volume in the series presents an explanation of a specific legal issue in simple, clearly written text, making the Almanac a concise and perfect desktop reference tool.
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MARTA restores credit card use

Posted by administrator | 05/09/12 | Tagged Credit Card

MARTA restores credit card use
News from Atlanta Journal Constitution:

MARTA on Tuesday partially fixed a four-day-old glitch in its Breeze card systemthat created long lines and confusion for some passengers during one of metro Atlanta’s busiest tourism weekends of the year.

Agency officials said the transit system started accepting credit card payments again just in time for Tuesday’s evening rush hour, though they were still trying to restore debit card service. The Breeze card machines began malfunctioning Friday, just as tens of thousands of visitors were pouring into the region for auto races, football games, Gay Pride activities, a sci-fi convention and other Labor Day weekend activities.

Between Friday and Tuesday afternoon, the machines only accepted cash. Riders with pre-loaded Breeze cards were not affected.

Ryland McClendon, MARTA’s assistant general manager for communications and external affairs, said the agency is still working with Cubic, the company that handles its Breeze card vending machine operations, to resolve the problem.

“MARTA is a lot of moving parts and at any time one of those parts can go awry and that’s what we experienced this weekend,” McClendon added. “This was right up there with the ice storm that we had in January 2011 in terms of impact to our customers and the inconvenience.”

The debit card problem continues as the city welcomes some 18,000 convention-goers for this…………… continues on Atlanta Journal Constitution

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Argentina’s Government Clamps Down on Credit Card Use
News from The New American:

Pity poor Argentina. As her economic situation once again spirals downward from merely terrible to catastrophic, the government in Buenos Aires is pulling out all the stops to force the population into financial serfdom in order to maintain its grip on power. The very latest outrage from President Cristina Fernandez —  who only months ago, in an act of naked theft reminiscent of the worst banana republics, nationalized Argentine holdings of the Spanish-controlled oil company YPF — has now announced heavy new taxes on the use of Argentine-issued credit cards overseas, and a law requiring disclosure to the government of every credit card transaction made on Argentine soil. The new 15-percent tax levied on foreign credit card transactions, sold by the Fernandez government as a strike only against a small percentage of wealthy Argentines traveling abroad, is in fact a blatant bid to tighten the financial noose around all Argentine citizens, denying them access to foreign currencies and overseas purchases to shield their eroding assets.

Argentina’s peso is once again in an inflationary tailspin. The last time things were this bad, a decade ago, the government shut down banks and confiscated savings accounts to stay afloat, an act Argentines have not forgotte…………… continues on The New American

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