Credit Issuers Play Let's Make A Deal
(iStockphoto)
As The New York Times reports, some companies are working with their delinquent customers to eliminate balances. The companies have revised guidelines, the Times reports, and in some cases are calling up customers before they call the companies.
"Now it’s the card company calling you and saying, 'Let's talk turkey,'" David Robertson, publisher of the credit industry journal The Nilson Report, told the Times.
Not surprisingly, few companies would actually confirm this practice is going on, though the Times reports some have been cutting customers a break since last fall. The article begins with a story about an HSBC customer who agreed to pay half his nearly $5,500 balance to get the bank to wipe away the entire debt.
Click here to read the entire New York Times article.
The secrets of tennis legend 
They will be surprised when they get one more payment and no more interest from ME...
They will need a bail out soon if they keep running there company in this manner
While my Alaska Air credit card just keeps going up without having to ask...
So all the info on how to get raises from them seems to be a crap shoot
I think that the next time you feel like gambling with either one of these companies you should toss a hand full of cash in the toilet Flush and just keep what is still floating
Or get A Alaska Air Credit card they seem to care about the costumer and understand how to keep good costumers
There customer service is A #1 with me...I have always been treated very respectably.
I think this is more of a statement and complaint about service that should not be!
It?s just is not right.
Let?s start with the first company Citi Bank they decided to lower my limit right after I made a $2000.00 payment so I would be able to use it on vacation
What a surprise when I went to use it and they had actually lowered it to a point that I was over my limit...
When they were called they told me that I had some stuff on my credit report that justified the decrease.
I had always made my payments on time and more than the minimum amount
I found out someone else had filed bankruptcy and they not me had screwed up the my wife?s SSI number and
I had that fixed before we left
I was told that timely payments was not the way they justified raises or the way they did business
I closed the account paid it in full that is the way I do Business
The second one was another letter that I got today stating that Chase
The company that just bought Washington Mutual my VISA Card Found that I was in a high risk category
Yet another one I always paid on time and more than the monthly payment
I am employed full time and have not missed any payments yet one of their reasons was that
I had not upheld other monthly card agreements for payments and my credit history was less that 24 months?
I have had this card for years like 9 and 3 company buy outs this is just is just B.S. Yet another one
I have just paid in full and closed so apparently my risk was not all that justified
The woman I spoke with was RUDE and hung up before I could say anything after she ask me if there was anything else she could do for me? I may also add that while talking to her the whole time I was calm and did not raise my voice was not rude after I heard there reasoning I just stated that I would like to know what the balance was to pay it off and to close it then I was told she could not do that she could close the account now and that I would still get statements for the charges on the card like I was a some
by tmittelstaed
Not necessarily...don't forget credit card companies are often held by the same banks who took advantage of across the board offerings of the unstable ARM loan w/out due diligence that these people could pay - Citicard -Bank of America, GMAC, just to name a few...not that these people had any business obtaining a loan far more that exceeded their income, but when the too good to be true, 5 yr ARM was up and either a balloon payment or re-fi was due, people could not qualify for a new loan - the mortgage companies (who also give out credit cards)should have screened applicants better so both are at fault - the irresponsible consumer and the greedy corporations - we refinanced at 4.75 fixed (we've always maintained fixed) have a couple cards - I pay mine off monthly, my husband makes monthly payments on his balance, nothing huge, but even being blessed enough to feel cautious stability in our situation, we still have other bills, all of which have gone way up - grocery, insurance, auto fuel (almost back to $3/gal) utilities, etc - the recession has indeed taken it's toll on everyone - all it takes is some unforeseen event to take everything away, God forbid...cause it's scary to even think about it!
I agree the deadbeats who use the loopholes to get out of debt that they took on with open eyes, deserve our scorn. But not all of these debts are like this. Many are legit and would be repaid if the card companies offered reasonable interest rates.
Unfortunately the way the credit card companies seem to like doing things is they loan out a few hundred then jack the interest up to obscene levels, then when the person has paid back double the principle the card company is willing to write off 1/2 of the debt. The card company is still coming out way ahead.
Don't be too sure about credit card companies paying any attention to ruined credit in the future. I would bet money that the poster who completed his bankruptcy is, today, getting preapproved credit card offers in the mail. The only difference between their preapproved credit card offers and the ones that you and I get in the mail is that ours have higher credit limits on them. Credit card companies love to get people right after bankruptcy because the person is then free of debt to other debetors, that would cause them to not pay back the credit card company, and is legally prevented from filing bankruptcy for another 6 years.
People who think the current economic crisis is going to result in a lasting change to how credit card companies behave have rocks in their heads. The only thing that is going to change is banks are going to be a lot more careful about loaning money out on home sales, because banks now realize that home property values can drop - something that nobody thought would ever happen. But, the credit card companies have been used to people getting credit cards then declaring bankruptcy for many many years, and have figured out how to deal with that in their business plans. The current economic situation just means that more bankruptcies will happen, but the card companies will easily adapt.
- by YCantWeAllGetAlong June 16, 2009 9:36 AM EDT
- They wouldn't talk to me when I lost my job at the beginning of the recession. They were rude and unmoved. So, we filed bankruptcy and stuck it to all of them. They got nothing and weren't able to contact us anymore. Now, we live debt free in the same home that we didn't lose (thanks to the real estate market crashing, our house was worth less than we owed) and we kept our vehicle. Filing before tax refund time, we were able to be discharged before we received our refund and instead of having to use it to pay down debt, we treated ourselves to some nice home improvements that upped the value of our home. I will never have a credit card again. I have my savings in a safe place and it's not like the interest I'm missing would be sad to lose. What .035%? You can keep your banks. I hope the credit card companies fail for their greed.
- Reply to this comment
-
- by timetrips1 June 16, 2009 11:50 AM EDT
- YCantWeAllGetAlong, while I have no love for the Credit Card companies, they are a business, and as such are in business to make a profit. Nobody forced you to take their credit cards and spend up more than you could pay. Your loosing your job is not their fault and doesn't negate your financial obligation nor does it obligate them to change the conditions of their loan to you.
-
-
- by the74blaster June 16, 2009 2:00 PM EDT
- That sounds like a typical credit card company. I cannot believe that the government sat back and left these companies jack the interest rates to astonomical levels.
-
-
- by dg441-2009 June 16, 2009 2:00 PM EDT
- You didn't "screw" the credit card company, you screwed yourself for the next ten years, won't be able to get a loan with low interest or buy a car. Anything you buy that will have interest attached to it you will be paying for your bad debt. Shouldn't live beyond what you can afford. No sympathy here.
-
-
- by craigh9 June 19, 2009 11:18 AM EDT
- Let' see, you mismanaged your credit thereby over extending yourself - and you find fault with the credit card companies for not making you be responsible for your mess. Then you screw those of us that do manage our affairs properly and now have to cover your debts - and you blame the credit card company. If you still own a mirror look into it and see who is truly responsible for your situation. You hope they fail because of their greed - WHAT ABOUT YOURS!!!!!
-
-
- by craigh9 June 19, 2009 11:33 AM EDT
- Just more more note after reading your post - you are truly showing how financially unsavy you are: "thanks... our house is worth less than we owe" and my favorite " we treated ourselves to some nice home improvements" - WOW, now there's a bright guy!!!! He'll be back in bankruptcy within 2 years
-
-
- by azure13 June 24, 2009 2:04 PM EDT
- Craigh9 and others... Let's see if you talk this tough if/when you lose your jobs. Jerks
-
-
See all 17 CommentsFiling for bankruptcy is the legal means to discharge debts you can not pay and you seem to have followed the legal steps. Hopefully you have learned a lesson and will start "saving" money from your pay check and not borrow more than you can reasonably repay.
In a reply I noticed the comment that credit card companies are a business and they are in it to make a profit. That is well understood. However, if they jack the interests rates when someone losses their job they also made a business decision to gouge the customer.
Its the business approach as someone buying a truckload of plywood and trying to sell it in an area under a hurrican warning. The only difference is the small guy renting the truck gets charged with gouging and the credit card companies got away with it.
In short, anyone carrying a large debt with credit cards should do the same as you did. The credit card companies deserve it and our government has done little to stop predatory loan practices.