Credit and Debt Blog
A Service of Debtors Unite, Inc.
|
|
|
Citigroup announced in April that it would eliminate 17,000 jobs. Now it appears there may be up to 45,000 additional job cuts.
The reductions are planned to offset the billions of dollars in subprime lending losses. What does this mean for cardholders? 
Chase Card Services announced that it will cease to penalize cardholders that made a late payment on other credit cards. Chase will no longer raise interest rates based on a review of a customer’s credit report. Their clear and simple program begins in March 2008.
What is universal default? Who else is ending universal default? Here are the answers, and a sign of the newest trend about to hit the credit card industry.
Both a credit freeze and a fraud alert can stymie identity thieves that are looking to exploit your good credit and open accounts in your name. Each can halt the opening of new credit accounts.
So why are both offered, and what is the difference?
We anticipate a coming recession in 2008. As such, our counselors are planning for increased requests for assistance from financially distressed consumers.
Leading economists now put the recession risk as high as 50% in 2008. This is more than twice previous estimates. Here is why.
No, Slavic Village, Ohio is not the scene for the next Hollywood teenage drama. Far from it.
Instead, the 44105 zip code has the dubious distinction of leading the nation in foreclosures. It doesn’t end there either.
Discover and Experian recently announced a new arrangement that would provide Discover cardholders with a consumer credit score product. Known as Credit ScoreTracker, the service could allow Discover cardmembers understand how their credit usage affects their credit score.
This tool comes at a substantial cost though. At $7.99 per month at the time of this press release, this represents another fee that can make repayment difficult. A cardholder paying $7.99 per month, plus .85% monthly for credit protection could have a much tougher time paying down their principal balance.
On Thursday, the House passed the Mortgage Reform and Predatory Lending Act of 2007. The House voted 291 to 127 to approve legislation that would curb common abusive practices in the subprime mortgage market. These abuses are blamed for massive foreclosures.
The bill still requires Senate approval. Some consumer advocates, including the Center for Responsible Lending, are calling on the Senate to strengthen the bill.
I hear some people say that credit counseling is just like bankruptcy. Others say that you cannot get a loan if you are on a debt management plan. There is so much incorrect information being discussed, and regrettably, it is often by professional mortgage loan officers and bankers.
Let’s bury the hatchet on those old urban legends. Here is the truth, from Fair Isaac Corporation, the Federal Housing Administration (FHA) and the US Department of Housing and Urban Development.
If you have ever pulled your credit report, you may have noticed inquiries that show up as “AR” or Account Review. Don’t worry–these don’t count against you as hard pulls.
So what are Account Review inquiries? In short, these are attempts by your creditors to invoke the universal default clause in your card holder agreement.
Some critics claim that credit counseling is biased toward creditors. Even the Internal Revenue Service has claimed that credit counseling provides private benefit to creditors.
Some credit counseling agencies are more concerned with their own bottom line than yours. With all of these revelations, how do you decide which agency to contact? Also, how can you trust them to represent you?
