Saturday, February 03, 2007

Credit Card Companies: Legal rape

One of my star employees has not been herself recently. I knew that she just bought a home which required major renovations. She also has the meanest accounts.

In the private sanctuary of my car, I simply said, "How are you doing?"

With that, the flood gates opened up. I was hoping that cancer or a corpse was not involved. Unfortunately, she is carrying 35K in credit card debt. 60% of the balance is interest and penalties. She is not a professional shopper. This debt was amassed during her sporadic periods of unemployment. How she managed to get a mortgage is beyond me. For a claims professional, I pay her the industry standard.

I referred her to our EAP program. We have a legitimate credit counseling company as a benefit. Her and her husband are 50 and will be dead before their debts are cleared. Their story is a familiar one.

The average person does not read the fine print on the inserts that come with the bill. But for those who do, a law background would be helpful.

For the record, I do not have any credit cards. My ex-husband works in the credit destroying industry, so I have had the benefit of his wisdom over the years. According to him, credit card companies love people who just make the minimum payment. The interest is compounded hourly.

This is the only industry that can change the rules whenever they feel like it. They love people like my employee, because all you have to do it pay late once and your interest rate goes through the roof. With friends like Senator Joseph Biden in Congress, this gang has the license to steal. Guess who wrote a pushed the new bankruptcy law? That would be the CC lobbyists.

Isn't this a form of predatory lending that is frowned upon?

A credit card can be used to developed a credit history. On the other hand, it can ruin your history quicker than you can image. The key is to understand that you are doing a deal with the devil. Schools teach calculus and advanced math. How come their are no classes on personal financial management?

I discovered the Credit Card Holders Bill of Rights on the Suburban Guerilla.

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