Obama`s debt relief efforts to protect card holders - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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

Obama`s debt relief efforts to protect card holders
The content is accurate at the time of publication and is subject to change.

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.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Credit Card Borrowing is Up among Millennials
Credit Card Borrowing is Up among Millennials

Posted: May 20, 2019

In the past millennials had fewer credit cards in their collective wallets, but things are changing according to the Federal Reserve Bank of New York’s Liberty Street Economics Blog, with over half of people in their 20’s carrying a credit… Continue reading

Three New Credit Cards from Sallie Mae
Three New Credit Cards from Sallie Mae

Posted: May 16, 2019

When people hear or read the name Sallie Mae more than likely they think about student loans because the company has been in that industry for years, but now they are looking to expand their reach and moving into the credit card business…. Continue reading

Earn a 75k Bonus With the Barclaycard Aviator Business Credit Card
Earn a 75k Bonus With the Barclaycard Aviator Business Credit Card

Posted: May 15, 2019

If you have been eyeing the Barclaycard AAdvantage Aviator Business credit card you may want to take a closer look because they have just raised the bonus offer that comes along with this card. Right now new cardholders can earn 75,000… Continue reading

Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Introducing the New Citi Rewards+ Card - the only credit card that automatically rounds up to the nearest 10 points on every purchase - with no cap
For Excellent, Good Credit
Enjoy 70,000 bonus miles after spending $5,000 on purchases in the first 90 days
For Good/Excellent Credit
See Rates & Fees
Perfect credit not required for approval; we may approve you when others won’t
For Fair/Bad Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!