Banks pitch program to forgive credit card debt

News Type: Opinion — Seeded on Sat Nov 1, 2008 9:13 AM EDT

Article Source: The San Francisco Chronicle

With defaults on credit card debt spiraling amid a global financial downturn, banks already reeling from the mortgage crisis are losing billions more from unpaid credit card bills.

Big banks have formed an unusual alliance with consumer advocates to urge the government to allow huge portions of credit card debt to be forgiven, a turnabout from recent years, when the banking industry lobbied strenuously to make it harder for consumers to erase their credit card debts in bankruptcy.

The proposal was pitched by the Financial Services Roundtable, which represents more than 100 big banks and other financial companies, and the Consumer Federation of America to U.S. Comptroller of the Currency John Dugan. Under the groups' proposal, a pilot project would allow big credit card companies to sharply reduce the amounts owed by consumers in over their heads who don't qualify for the repayment plans now available.

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{"commentId":3817339,"authorDomain":"travelbizcash"}

Dan-470975

Credit card companies need to be regulated, the interest they are allowed to charge and the limited time they give you to make payments (seems the bills come every 20 days) and those ridiculous late fees.

Seems the creditcard companies can get away with whatever they want.

We ALL need help with those bills !

Whichever candidate is voted in they need to regulate the creditcard companies!!

{"commentId":3817339,"threadId":"406024","contentId":"2062013","authorDomain":"travelbizcash"}

2 votes

#1 - Sat Nov 1, 2008 9:16 AM EDT

{"commentId":3817569,"authorDomain":"adouglass3"}

ABD3

And the slide begins...mortgages, credit cards, are we going to do luxury car lease forgivness next?

{"commentId":3817569,"threadId":"406024","contentId":"2062013","authorDomain":"adouglass3"}

1 vote

#2 - Sat Nov 1, 2008 9:42 AM EDT

{"commentId":3818263,"authorDomain":"terry57"}

Agent 57

stop using credit, use cash, save and use patience in your purchases be in informed consumer. I haven't charged on a credit card since jan 08. Don't miss them at all.

{"commentId":3818263,"threadId":"406024","contentId":"2062013","authorDomain":"terry57"}

1 vote

#3 - Sat Nov 1, 2008 10:42 AM EDT

{"commentId":3824454,"authorDomain":"cyan412000"}

cyan412000

wonder if that means the consumer is forgiven on the debt?. credit cards are nothing more than instant loans in your name at extremely high interest rates.

again money conjured out of thin air by the banks and charged late fees. user fees. yearly fees and sky high interest rates.

{"commentId":3824454,"threadId":"406024","contentId":"2062013","authorDomain":"cyan412000"}

1 vote

#3.1 - Sat Nov 1, 2008 5:58 PM EDT

{"commentId":3825666,"authorDomain":"terry57"}

Agent 57

It's a product called debt!!!!!!!!

they will be forgiven a percentage I believe 40% taken as a 1x charge-off against earning.(for the bank) It will increase the valuation of the company and stock, it's manipulation,,,,IMO... The consumer pays taxes on the part forgiven as earned income,,,one time charge,,, then the remaining balance can be paid interest free over 5 years,,, also the bank can then say look what a nice job we did and give themselves a large bonus, thanks to the tax payers...

{"commentId":3825666,"threadId":"406024","contentId":"2062013","authorDomain":"terry57"}

1 vote

#3.2 - Sat Nov 1, 2008 7:31 PM EDT

{"commentId":3843995,"authorDomain":"seward"}

Sandie Seward

Oh yes, the Credit Card Crunch still has to happen. Just wait until next year.

{"commentId":3843995,"threadId":"406024","contentId":"2062013","authorDomain":"seward"}

1 vote

#4 - Mon Nov 3, 2008 7:46 AM EST

{"commentId":3844136,"authorDomain":"cyan412000"}

cyan412000

tax time is coming people. as they write off DEBT and losses so should you.

{"commentId":3844136,"threadId":"406024","contentId":"2062013","authorDomain":"cyan412000"}

1 vote

#5 - Mon Nov 3, 2008 8:00 AM EST

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DAN-470975

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Banks pitch program to forgive credit card debt

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