The customers could not make the new payments. As a result of the banks action, the customers were forced to close the accounts. The bank required fixed payments that were not feasible to the customers. The customers were adament to set the payment amounts. The next option for the customers was bankruptcy. This was all a result of the banks actions and inflexibility to correct the negative impact of their actions.

I am seeing an increase in this behavior from the banks. Seems like the credit cards companies are legally being allowed to operate as loan sharks.

Wall Street ponzi schemes, legalized loan sharking…what will the consumers have to deal with next?

It’s something to think seriously about- the main reason defaults are rising- is that the discredited card companies are forcing plain, honest folks into bankruptcy; every day.

If you suddenly find yourself really struggling to pay your bills each month- remember who your friends are- and who your enemies are. And don’t wait until you’re up against the wall.

Guaranteed; this is what will happen: you’ll get a friendly call, hoping you’re well, and nudging you for payment. Then you’ll get angry calls for about 4 months; warning you that the world will end if you don’t pay up. Then they WILL give it to a collection agency, who will also threaten. Then- at about a year; they’ll start offering to settle for half; or a third; of the total. Every time.

And you won’t have had to pay them, for that year.

Yep; it’ll mess up your credit report and score. If that’s happening anyway – just what do you have to lose?

Then, you must make 12 “on-time” payments to restore your interest rate. With bill pay I have found that it can be a weekend or holiday or it can be close of day on the East coast (they find any reason), etc. and it isn’t difficult to have your payment fall one-day late for a variety of reasons.

This is absolutely corrupt as far as I’m concerned and I must either ‘opt out’ of this agreement and close my card or agree to it.

They have also raised my interest rate, but that I could live with since I’m not using the card anyway.

The fact that the credit card bill is a year away and it still doesn’t cover all the bases is a mystery to me.”

Cindy answers: “Making on-time payments every single month is the most important thing you can do to maintain your credit score and keep your interest payments low. Make your automatic payment go a couple of days early so you’re not late if the due date falls on the weekend or a holiday.

With the new Credit Card Act of 2009, your payment will have the same due date every month and if the due date falls on a weekend or holiday and arrives the next day it won’t be late.

Listen to the Credit Card Act of 2009 teleclass replay for more information on what’s changing on February 1, 2010.”

Cindy answers: Currently Chase is offering to close the account and change you to a higher interest rate in order to maintain a lower payment. This may be your only opportunity to keep the payments low. This policy can change at any time and may be different for another credit card.