10 Aug Credit Card Companies Are Targeting Bankruptcy Debtors!
As soon as I finish blogging about bankruptcy this morning, this article came floating into my in-box. It was too shocking to pass up. As a bankruptcy attorney, I hear story after story from my clients about the amount of credit offers they receive after they file for bankruptcy. According to a study performed by the University of Iowa, Credit Card companies are targeting people fresh out of bankruptcy with credit card offers. According to my clients, the offers are pouring in about thirty days after they file their bankruptcy cases. In other words, the Credit Card companies are not even waiting for the Debtors to receive their discharges.
As reported in the the Daily News, the University of Iowa study found that nearly 100% of families surveyed had been offered new credit cards within a year after completing the bankruptcy process. Unfortunately, I do not find this shocking. I have litigated numerous cases against the credit card companies in both State and Federal Court, and I have learned a thing or two about their marketing practices. The bottom line is that they do not care who they give a credit card to. They want to give credit cards to everyone. They want you to spend spend spend. Think about how much money they make if you are not in debt????? They make nothing.
The best part of the study is the conclusion, which, in essence states, that Credit Card companies seek to profit from financial distress. In my opinion, the Credit Card companies cause a significant amount of financial distress. Then, the Credit Card companies run to members of Congress and throw money at our elected leaders to get the bankruptcy laws changed. According to this study, you and I can now see how the Credit Card companies marketing plan has come full circle.
The Credit Card companies have their card holders right where they want them. First, the goal is to have them make only monthly payments. Second, when you get into trouble, they jack up your interest rate. It doesn’t matter that you are current on your monthly payments to that card, they have universal default rates. Third, you try to get a lower interest rate, but guess what?, your current on your payments and they will not lower your interest rates. Fourth, now you are behind and contemplating bankruptcy. Well, the Credit Card companies have that covered also. They have paid off members of Congress to change the bankruptcy laws to make it harder for you to file bankruptcy. Specifically, it is more expensive. The Credit Card companies also wanted you to pay more to your creditors during the bankruptcy process; however, that is not always true (All Bankruptcy Attorneys are not created equally). Lastly, after bankruptcy, the Credit Card companies are targeting debtors. Ha !!!! No kidding.!!! These individuals are fresh meat. They are the low hanging fruit just waiting to be picked.
I almost choked when I read that advocates for the consumer credit industry say people just out of bankruptcy need new opportunities to obtain credit so that they can begin the process of rebuilding damaged credit. Can you believe the hypocrisy!!!!!! Oh, I thought you were just out to make money. I’m so sorry for not understanding that you really want to help. Please excuse my IGNORANCE.
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