Saturday, June 5, 2010

Cruel Credit Card Company Practices

The selling and reselling of debt in America has become a very profitable industry for credit card companies and banks, but a burdensome load on Americans. During the current harsh economic climate, many Americans have lost their jobs and defaulted on credit card payments. If one has no job, how can one pay one's bills.

One of my friends lost her job and defaulted on one of her credit cards and by the time they sold and resold the debt, it was ugly. She was forced to make arrangements with the third party financial institution the credit card company sold the original debt to, making $100 monthly payments.

However, what was a $5,500 balance, became a $16,500 nightmare, after they added countless fees and massive interest rates to the original sum she owes, which they purchased from the credit card company. She gave me the documents to peruse and it was quite appalling.

In looking at the papers, I shook my head, as this same story is repeating itself all over America and bogging down Americans with terrible debt, far above anything they originally owed, which is unconscionable. The Judiciary Report realizes companies are in business to make money, but there should be limits on what they can charge consumers.

The government should enact legislation to bar companies from adding such exorbitant fees, as it is keeping many Americans in serious debt and hampering their futures. Companies should not be able to gouge citizens to such terrible extremes, as it is corporate extortion, not conducive to a healthy economy.