- a requirement that a debt collector identify himself and disclose to the debtor that the purpose of the communication is to collect a debt; and
- a prohibition against communicating about the debt with third parties
If your house is worth less than the first mortgage, you can wipe out second mortgage liens in a chapter 13 bankruptcy case. This is through a procedure called "lien stripping". Basically, you do have to pay what you owe under a chapter 13 plan....
Now that you've read the 11 Mistakes to make on a Credit Card (Parts One and Two), you should know that Congress has tried to rein in these practices. With the crisis in credit, focus has fallen on the credit card companies and the abuse...
New rules prohibiting unfair collection acts and practices will go into effect in 2010. The Federal Reserve Board announced last December the approval of these new rules to better protect credit card users.
In the meantime, credit card companies are positioning themselves to try to lessen the impact on them of the new rules.
For instance, credit card companies are taking advantage of consumers who are late with their credit card payments. Creditors are now, without prior notice, raising the interest rate on late paying consumer’s credit card debts, by three or four, or even five times the rate it was before.
In addition, new credit card applicants are finding themselves subject to more stringent screening processes as well as a higher interest from the beginning.
The following is a synopsis of some of the new rules:
You've bought something on credit while on vacation in another country. In addition to the exchange rate on the date that the cahrge hits your account, creditors can add 1% to 3% (of the purchase) fee on all purchases in addition to the 1% exchange rate fee. Now that purchase just cost you as much as 4% more than you thought. What a bargain.
Take a cash advance on your card and it will likely bear a different interest rate than if you made a purchase. Mny cards will then apply your payments to the lower interest rate balances first, thus assuring that the higher rate amounts will bear interest for a longer period of time.
A friend recently showed me his Chase savings account statement revealing Chase paid him a measly $0.62 interest for the month when he had over $80,000.00 in the account! Yet Chase is charging this same customer 27.44% on his Chase credit card! To add insult to injury, my friend called Chase and...