Capital One is one of the biggest credit card companies in the United States. During the economic downturn and the resulting credit card crisis, it also became one of the heaviest hit credit card companies in the country.Along with several other major credit card companies, Capital One was on the verge of bankruptcy and was saved through the intervention of the government which provided it and other credit card companies with large loans.
Although Capital One has recovered somewhat from its...
It seems that the government may have made an enormous mistake giving credit card companies several months leeway to adapt to the credit card bill. Credit card companies are now doing everything they can to increase profits before they have to deal with the credit card bill. Unfortunately for credit card holders, this means more expensive interest rates and fees and drying up credit.
The credit card bill, signed May this year, is set to become active next year, February. Although some of the...
The rising unemployment rate and the economic slow down is hurting many American consumers. Consumers are now finding their budgets stretched thinly just to cover their basic expenses. Many are finding out that their monthly take home pay is just enough to cover their daily expenses. As a result, they have had to prioritise their spending and one of the first budgetary expenses to go is credit card debt payments resulting in the rise of defaults and charge-offs for credit card companies.
The...
If you are a credit card holder nowadays, it almost seems like you are holding a financial ticking time bomb. As you might have noticed, the whole consumer-sphere is abuzz with the recent controversies regarding credit cards and the credit companies who issue them.
A lot of the buzz that is going around is about the widespread practice among credit card companies of increasing interest rates as well as fees while introducing new fees as well. Because of these changes, many credit card...
The credit card industry is in a state of upheaval right now due to several factors. First is the general economic downturn which affected gravely the credit industry, sending several major credit companies to the brink of bankruptcy.
The rise in delinquencies and write offs were primarily one of the major causes of the credit industry crisis and the situation is still continuing today, albeit there have been some improvements and the industry is getting back some of its confidence. Finally,...
The credit card bill will soon be active in a few months. With the bill in place, credit card holders are finally going to see their credit companies take on a semblance of fairness when dealing with them. Or will they?
Set to become active next year, on February, the credit card bill may be coming in too late. The release of the credit card bill may have been met with widespread approval by credit card holders and their supporters but the credit industry positively loathes it, and with good...
The credit card bill signing into law was greeted with widespread support from consumers and consumer advocates. Many believed that the law would finally bring to close the era of predatory lending and other unfair practices from credit companies. However, many soon realized that a fundamental flaw in the bill would cost credit card holders even more: the nine month window before the credit card bill becomes active.
While the credit card bill was signed last May, full activation of the bill...
It is an overwhelmingly obvious fact that credit card companies are now quickly changing their rules for credit card use in order to alleviate the problems that they are facing due to the economic recession and, more importantly, be ready for the activation of the credit card bill.
The credit card bill, officially known as the Credit Card Accountability, Responsibility and Disclosure Act was drafted early this year and signed into law by President Barack Obama just this May. The bill aims to...
As the magic hour when the credit card bill becomes active approaches, credit card companies are scrambling to tighten up credit and raise interest rates to ensure that, with the bill in place, they can still keep their profit margins.
One of the most controversial amendments in the credit card bill will stop credit card companies from arbitrarily hiking up their interest rates and fees. As a result, most credit card companies are making their interest and fee changes now, while the credit...
Many thought that the credit card bill would be the end of high interest rates and fees in credit cards, not least among them the lawmakers in Congress and the consumer advocates who backed the bill aggressively when it was still being debated.
However, the leeway of several months that government has given credit card companies to adapt their business to the new legislation seems to have had a very nasty side effect. Now, credit card companies are using the available time to raise their...
Last May, President Barack Obama signed into law the credit card bill. The credit card bill introduces several regulations that aim to help credit card holders get fairer treatment from their credit card companies. The bill contains regulations that will stop the arbitrary raising of interests and fees, minimize the offering of credit to high risk consumers such as those below 18 and force credit card companies to have clearer and more easily understood languages on their credit card agreements...
Continue readingOne of the biggest drawbacks of using credit cards for purchases is the high risk of getting yourself into debt. If you are a smart consumer, then you are probably keen on keeping up to date with your monthly balances and you probably pay it off every month.
However, emergencies and sudden financial disasters, such as the current economic crisis and high unemployment, can easily destroy your monthly credit card payment schedule. As a result, you have probably found yourself in deep debt now....