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And almost simultaneously, the credit card companies are being forced to increase the minimum payments. So, your payments are doubling and it's going to be harder to declare bankruptcy so you better make sure you can pay those credit card bills.
From ABC News website:
Watchdog Group Cracking Down on Companies
The Office of the Comptroller of the Currency, a bureau of the U.S. Treasury Department as well as a watchdog to protect consumers from abusive and deceptive credit card practices, is cracking down with tougher guidelines on interest rates, marketing tactics and account management practices. According to BusinessWeek, credit card companies had a banner year in 2004, bringing in record profits of $30 billion, in large part due to fees and high balances.
In response to the OCC's call to credit card issuers to help their customers get out from the layers of debt, many national banks and credit card issuers are increasing their monthly payment requirements. For the millions of Americans struggling to pay off their credit cards, the mandated jump in monthly minimum payments may seem a bitter pill to swallow.
However, the change in requirements could just prove to be the best medicine in terms of helping consumers dig their way out of debt. The typical monthly minimum will double from about 2 percent to 4 percent. Under the change, minimum credit card payments will cover not only fees and interest charges, but more importantly, a portion of the original debt. This means that customers paying off their credit card bills should be able to make a dent in their debt and actually pay it off more quickly.
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