Credit Card News

Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » Obama`s debt relief efforts to protect card holders

Obama`s debt relief efforts to protect card holders

By
Add to Favorites:
Obama`s debt relief efforts to protect card holders

The Obama Administration`s latest debt relief efforts include new rules to help credit card holders eliminate their debts more effectively for the year 2010 and beyond. With its results likely to show in 2011, President Barack Obama is optimistic that the bill which was passed by the Congress October 27, 2010 will be the best protection for credit card holders against the uncommon and excessive fees that debt relief companies charge them.


The new debt relief rules for credit card holders ban the charging of unusually high fees and interest rates which debt relief companies fail to justify to their customers. This move is seen to make the companies become more transparent, direct, and definite in relation to what and how they charge their card holders.


Also, the Obama administration emphasized the need to end the greedy practices of the debt relief industry which take advantage of the large unemployment rate. Economists put the unemployment rate across the country at 10 percent. With more people unable to earn, the greater number of card holders are incurring


The debt relief companies have attracted an economically vulnerable market due to the inadequacy of government unemployment benefits. Because of this, credit card holders sought the plans and programs of the debt relief industry, aside from enlisting help through the courts.


Obama said that education still remains as the best debt relief plan for all credit card holders. The new rules include an education program for credit card holders on how to manage their debt easily by themselves, with consideration of the alternatives to debt. The new rules will also end the debt relief industry practice of making payment of high fees and interest rates as a requisite for opening credit lines to their consumers, especially those who are unemployed or those who lack the capacity to repay.


Moreover, the new rules are set to enforce changes in the debt relief industry by first requiring companies to prove actual debt reduction or elimination to their credit card holders before charging fees.


To protect the vulnerable market, the Obama administration warns debt relief companies of possible sanctions should they continue to use uncommon fees charged to credit card holders who are not even notified of fee additions and changes.


Experts now advise that with the efforts of the Obama administration, responsibilities still need to be carried out by the credit card holders on their own in terms of first checking the track record of their chosen debt relief company.

Add to Favorites:

Related News:

Small and Medium Businesses Are Feeling Hopeful and Confident

By Dar Dowling, Posted: February 21, 2017

If you have felt a sense of hopefulness when visiting small and medium-sized businesses, you’re in sync with the trending vibe, according to the inaugural American Express Global SME Pulse. The study found that these businesses are feeling ... Continue reading
New Visa Cards From Cathay Pacific

By Dar Dowling, Posted: February 20, 2017

Travelers have new rewards earning credit cards to choose from with the rollout of Cathay Pacific Visa Signature card. Continue reading
New Travel Rewards From MasterCard

By Dar Dowling, Posted: February 17, 2017

MasterCard is rolling out new travel benefits and rewards for MasterCard Platinum, World and World Elite credit cardholders in the Asia Pacific. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Unlimited 1.5x rewards on every purchase, every day. For every $1 you spend, you earn 1.5x Miles.
For Excellent, Good Credit
Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit