I don't know what to do...CC company screwed us...now we're quickly going under.

[Buddyblazon]

Due date was on the 4th...for a very long time. Chase bought WAMU...moved our date back to the 9th. Then the next month moved it back to the fourth. My wife had moved the automatic withdrawal back to the 6th when they moved their due date back. Didn't notice it got moved back. We were late by two days.

Bumped our rate from 14%....to 30%. Hadn't been late on any payments for anything in over ten years. The payment has now increased dramatically and has pushed us over the breaking point. Talked to them. They're vultures.

Bank won't give us any type of consolidation loan...debt/income too high.

This happened last month. And it's immediately become a major boat anchor.


Don't know what to do...than say, "Go fuck yourself" to them...take the hit and just stop paying them. Our house is far more important than the vultures. We have a boat load of equity...and it's supposed to be our financial springboard when we eventually sell it. If we lose it...we're totally fucked.

Just got a call from the bank that has our car payment. It was due monday. Wife hasn't paid it yet. :(


I'm so bummed. I've spent years reclaiming my credit. I was in the low 500's. Now I'm 720. And it looks like I'm just going to blow it.



What the fuck DU. I have no idea where to turn from here. I've been busting my ass to get more work...but we just can't keep up.

We're idiots. Just out and out idiots.

[Changenow]

1. Call Consumer Credit Counseling

http://www.cccservices.com/

[Phoebe Loosinhouse]

2. If this is your first time being late, they should waive the fee.

If they will not, they are truly assholes. I'm concerned about your wife not making the car payment . She might be sinking under the stress and it's time for you to jump in on the bill-paying if you haven't already.

Now - try this. I am pretty sure it's quite legit. Google and read about it - you might find help there.

http://www.prosper.com/

[MilesColtrane]

95. They moved the due date on purpose.

They WANT you to make a late payment and invoke higher interest rates and penalty fees.

They will also move the physical address that your payment is mailed to, in the hopes that you will not notice and make a late payment.

Everyone needs to read every sentence of every piece of mail that comes through your door.
Bank of America sent a notice that they were doubling the interest rate on my credit card unless I sent a letter opting out of the change and canceling my account.

This letter was designed to look like a piece of junk mail so that most people would simply toss it.

[Dr.Phool]

107. Chase won't. They are major league pricks.

They pulled that shit on me a few years ago. Luckily, I had another card with a zero balance, and just transferred it. And it was the first time I was late on anything in about 15 years.

I would suggest calling my Congressman and Senators, just for the hell of it. And also the Chairs of the House and Senate Banking Committees.

[tsuki]

157. The BBB has a special address to send Chase Credit Card complaints

to. That says something.

[TwixVoy]

118. Are you nuts?

You are seriously telling someone who is drowning in debt to go get another loan?

[Phoebe Loosinhouse]

122. He says his problems began when he was moved from 14 to 30%

And since he obviously cannot pay his debt outright, it seems that a logical suggestion would be to find some way to refinance his loan at better terms TO LOWER HIS PAYMENT.

What don't you understand? This is done everyday. The site I referred him to actually allows people to put out what they need in terms of funds and put it out to bid. I would do it myself if I found myself in desperate circumstances as the OP seemed to be.

I also like the concept of Prosper.com as it is an alternative to conventional bank "screw you" financing and may be the wave of the future - affinity, personal or private loans. What if DU at some time in the future offered the Co-op of DU where Duer's could invest and help other DUers? I could see myself participating in that.

[phantom power]

3. Firstly, don't blame yourself for credit card usury.

They're the ones who fucked around with your payment date and doubled your rate.

Can you transfer the balance to a new competitor card with a promotional rate? If you have strong equity, you might be able to consolidate on a home equity loan.

[Buddyblazon]

8. They said our debt to income was too high.

My student loans...and her recently added student loans just put us over the point of getting anything.

[phantom power]

19. Making a call to Consumer Credit Counseling is definitely a good idea.

I don't know the details of your situation, but in the big picture, even if you have to really bail, declare bankruptcy, move in with parents, or what-have-you, keep in mind that even that isn't the end of the world.

Don't let the CC companies or anybody else paralyze you with guilt.

[MercutioATC]

24. I'm not diasgreeing with your point, but stop using the word "usury".

Usury is a legally defined term and the credit card companies aren't guilty of usury.

[phantom power]

30. Good point, but what it means is that 30% interest is legalized usury.

I'm sure the credit card companies would be pleased as punch to have us not accuse them of usury on legal grounds, but the whole problem is that they've succeeded in legalizing usury.

I'd like for us to start making the argument that they are in fact guilty of usury, and the fact that it's legal means we badly need to change the appropriate laws.

[MercutioATC]

34. That's why we need credit card reform legislation.

(and I suspect we agree on this)

I have no problem with a CC company changing the terms of the agreement, BUT the changes should not be legally able to effect existing balances. Things change and your CC company wants to charge 30%? Great...but your existing balance remains at the initially agreed-upon rate and the consumer (while making at least minimum payments) gets to make payments to whichever balance they choose.

The problem isn't the raising of rates, it's making that new rate apply to the existing balance.

[phantom power]

35. I would see you and raise you...

I would put a cap on interest rates, pegged to prime rate. I would forbid any financial company from charging an interest rate higher than prime rate plus 10%. In other words, I don't think it's OK to charge somebody 30% interest. If you can't make a profit at prime+10, then you just aren't a viable business.

By the way, I also like the idea of requiring existing balances to remain at the interest rates at which they were incurred. That would make it sort of like a mortage. Principle stays at the original negotiated rate. For revolving credit, that may make the bookkeeping a bit complicated, but it's all done with computers anyway. They already maintain multiple balances at different rates, e.g. different rates for charge vs cash, or those check thingies they send out.

[Dr.Phool]

108. Legalized gangsters are what they are.

And Durbin was right last week when he said the banks own this place.

[spotbird]

36. 30% is usury as the word is commonly defined

usu·ry
Pronunciation: \ˈyü-zhə-rē, ˈyüzh-rē\
Function: noun

2: the lending of money with an interest charge for its use ; especially : the lending of money at exorbitant interest rates
3: an unconscionable or exorbitant rate or amount of interest ; specifically : interest in excess of a legal rate charged to a borrower for the use of money

[MercutioATC]

48. "Exorbitant" is a matter of opinion.

That's why states regulate a maximum interest rate allowed.


These CC companies are NOT charging usurious rates.

[spotbird]

78. They are not in violation of state usury laws

but the rates are certainly usurious.

[Raineyb]

83. State usury laws don't apply with credit card companies

They use the rates allowed in the states they're based in. Guess what the states they're based in don't have any bloody maximum rates they can charge whatever they want. Why do you think they moved there in the first place?

[Dr.Phool]

109. They don't regulate shit.

They're bought and paid for.

[Hugin]

47. Um, if they lend money and collect any interest... It's usury.

Ask anyone.

[MercutioATC]

49. Not by the legal definition.

The maximum rate is determined by state.

Anything less than that is not "usury", legally.

[Hugin]

53. I was unaware that a legal definition trumped common usage.

I guess a jury of his peers would have to decide if it were usury or not. Could be precedent setting.

Being a peer... I see usury as any interest paid on a loan.

But, the legal definition goes more along the lines of the Bush Era's Comptroller of Currency's decision regarding the CC companies wishes.

[MercutioATC]

56. Your definition kinda defeats the purpose of the argument.

If "usury" is ANY interest charged on a loan, then there's nothing wrong with usury.

[spotbird]

60. "...especially : the lending of money at exorbitant interest rates"

Is the emphasis employed by those using the word here.

[MercutioATC]

73. As I said above..."exorbitant" is a relative term.

I've seen people here who think that anything over 3% above prime is "exorbitant".

A word is meaningless without an agreed-upon definition.

[spotbird]

76. If you think usury should only be

used as it is legally defined, suit yourself. The rest of the world finds its common usage descriptive, you might have to live with that reality.

[Tangerine LaBamba]

128. If it's high enough to shock the conscience,

it's usury.

I'm a lawyer. Anyone who thinks usury is only defined by its legal meaning is living in a bubble so cloudy, they can't see out.

We can thank the good Phil Gramm for the deregulation that allowed state usury laws - in some cases - to disappear, and, as someone pointed out above, the credit card titans simply moved their legal operations base to states where even Tony Soprano would blanch at what they can get away with................

[anigbrowl]

141. Then you're foolish. That's the whole point of having legal definitions, they're specific.

Obviously you think that lending money for any interest at all is unconscionable. You're about 500 years behind the times with that one - and sympathetic though I am towards the OP, that doesn't mean I think we should be able to borrow money for nothing.

[Hugin]

144. Did I say anywhere interest shouldn't be paid on loans?

Here, since your vestigial reading comprehension skills have rendered you incapable of deciphering the simple thing I said, I'll put it in even more layman's terms...

A jury should decide if it's usury or not based on the commonly accepted definition of the word.


Don't worry... I'm not saying the CC Corporations shouldn't get their pound of flesh. Your interests are safe.

[anigbrowl]

156. Well, you said in #47 : 'Um, if they lend money and collect any interest... It's usury.'

Since your tone suggests you're against usury, how else can I interpret it? If you think payment of any interest is usury, then it seems you're against payment of any interest.

And just because I disagree with you doesn't mean I have any interests in the credit card business: I don't. Not only do I not have any shares or other financial instruments in that sector, I don't have a credit card any more either because I paid off and cut up the last one I had a few weeks ago.

[spotbird]

57. But we are using the

common definition, not the legal one.

[SOS]

66. State law does not apply to national banks

That's why the pigs are all incorporated in Delaware and South Dakota.
The two states in the Union with no usury laws.

Marquette Nat. Bank of Minneapolis v. First of Omaha Service Corp. (439 U.S. 299), is a unanimous 1978 U.S. Supreme Court decision holding that state anti-usury laws regulating interest rates cannot be enforced against nationally-chartered banks based in other states.

[Raineyb]

153. You're wasting your breath

I made this exact same point on another thread about Credit cards. The disinformation continues.

Regards

[Dr.Phool]

110. I heard the Gambino Family was looking for an apologist.

Anybody who will defend the credit card companies on this shit qualifies.

[SOS]

116. You hit upon the reality!

The mob families based in Brooklyn have moved out of loan sharking and into tobacco bootlegging.
They could no longer compete with Citibank.

True.

[SOS]

63. In New York State, usury is defined at anything over 16%

Thus, under our state law, 30% is a criminal offense.

The card companies circumvent state law under the Marquette decision of 1978.

The Congress could write new law, but they will never do anything to protect us because they are bribed lackeys.

[Buddyblazon]

4. Somebody....seriously....

WHAT THE FUCK DO WE DO?

My wife has gone into this weird "I can't think bad thoughts because then I'll roll into a little ball and give up" mode. It's like she's mentally losing it while I sit helpless.

I don't know what to do.

What do I do?

Please...somebody tell me.

[Phoebe Loosinhouse]

14. 2 concrete suggestions were made in posts 1 & 2 that don't involve your credit card company.

The other thing you could do is try to sell some stuff that you own that might help you temporarily raise some funds. Can either of you get an advance at work? Bosses can be surprisingly supportive and helpful for good employees in a bind.

Other thought - is your house large enough to rent out a room to someone who could help you pay your overhead expenses?

[Joe Fields]

51. cancel your cards, freeze the interest, sell off a bunch of stuff.

Start living within your means again. You would be surprised just how tight you can tighten that economic belt.

[Missy Vixen]

67. Did you read his post before spouting off?

>Start living within your means again.<

They're paying off two student loans with the other obligations they have.

Why don't you climb off your high horse before telling others to "live within their means"?

[Joe Fields]

84. The time to start worrying, is before you get yourself on the hook

for two student loans. Let the kids pay for their own education. My son is, and, coupled with some partial scholarships is doing it quite well. Don't ever bite off more than you can chew, because if you just wish and hope that everything will turn out alright, you'll end up in bankruptcy court.

As for spouting off, isn't it what all of us here do? Besides, since when did using common sense advice amount to a feeling of superiority? The OP asked for advice and I gave him some, just like you did. You don't see me criticizing what the fuck you wrote.

[Missy Vixen]

93. You don't comprehend what you read, do you?

It's not "if" student loans are utilized in most cases, it's "when". The vast majority are still paying them off well after they start their careers. Unfortunately, to get a job, one must get an education, and that education costs. Of course, in a perfect world, none of us would get married or start a family till the ten years repayment period is over, but gee, sometimes life intervenes. Imagine the fun for those who are now on the hook for at least the $22K average amount, lost their job, and can't find another.

The OP feels badly enough at this point. Chiding him for what you consider his shortcomings is not going to help him now. Right now, he needs a bit of help with figuring out the right person to talk to at Chase to lower an interest rate that would break the most fiscally responsible.

In the meantime, I would LOVE a peek at the RL financial decisions some of the know-it-alls here make. I'm thinking they're vastly different than touted on this site.

[Name removed]

127. Deleted message

Message removed by moderator. Click here to review the message board rules.

[proud2BlibKansan]

138. You told him what he should have done

That's not helpful.

[Joe Fields]

140. You teach, right? But you can't read or comprehend?

Or are you just using the tired old ploy of selective memory?

I also told him to tighten up and sell anything off that he can.



On a different note, I'm not the least surprised I didn't hear from you on my thread about the NYC inner city charter schools. In fact, I haven't seen many replies at all. Cat got your tongue?

[proud2BlibKansan]

150. Oh I am supposed to spend all day here waiting for YOU to post a thread so I can be sure and comment

Yeah right. Remember, I DO have a job. There are how many thousands of threads posted here every day but I am supposed to make sure I comment on YOURS?

Get over yourself.

Most considerate DUers (which you are not) PM folks if they want them to comment on a thread.

Here's one you can kick for me.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=5615311&mesg_id=5615311

[shireen]

79. DO NOT CANCEL THOSE CARDS!

a big chunk of your fico score is based on your debt to credit ratio. If you cancel the cards, your credit score will decrease.

Keep the cards open, even if you end up going with a new CC with better interest rates. Keep your available credit as large as possible, even if you never plan to use it. Do it for the sake of your fico score.

[Joe Fields]

88. The last thing he needs to worry about right now is his fico score.

He's having trouble making payments! The interest on his debt will just keep accruing, unless he freezes or cancels his card and specifically requests to have the interest frozen. He is in crisis mode, from the sound of it. He needs to shred those cards.

[high density]

92. Requests to have the interest frozen? The rate will be frozen, but the rate is 30%.

Interest will still accrue on the debt. If it was so easy to freeze interest from building up then the rate would be a non-issue.

[Statistical]

101. THIS IS EXACTLY WHEN YOU WORRY ABOUT FICO

Canceling the card will NOT stop interest from accruing.

It will however totally trash utilized credit % and tank FICO which in turn will make recovery in the future that much more difficult.

Shred Cards - good
Work w/ CC company for payment plan - good
cancel card - worst decision ever

[shireen]

124. he should worry about FICO

fico scores determine mortgage rates, should he need one in the future.
fico scores determine the interest rate for auto purchases.

fico scores don't matter for the super-rich who pay cash for homes and cars.

he needs to figure out how to minimize the fico damage. Therefore, do not cancel any cards unless you do it through a reputable non-profit credit counseling service.

[bighart]

98. same is true of using credit counseling, it will hit your credit score.

[shireen]

123. not true.

i went thru 5 years of credit counseling. at the end, i was surprised to see that my fico scores were not low -- not outstanding, but respectable. From there, i was able to increase it to higher values.

he may not get much use out of his fico score while paying off his debts. but if he faithfully follows the debt payment schedule set up by the counseling agency, it will reflect well on his score. BTW, a good counseling agency will negotiate interest rates with the debtors. They negotiated lower interest rates for my VISA cards. For my AMEX card, when i finished paying off the cards, AMEX sent me a check for the interest amount -- effectively, i had paid 0% on the two AMEX cards. AMEX wanted me to pay off the cards to show i was serious before granting me that effective 0% interest; the agency had apparently negotiated that for me, but didn't tell me, it was a nice surprise.

This is the agency i used, really good helpful people.
American Consumer Credit Counseling
130 Rumford Ave., Suite 202
Auburndale, MA 02466-1371
Toll Free: 1-800-769-3571
Local: 617-559-5700
Counseling Center: ext. 506
Client Service Department: ext. 500
Disbursement Department: ext. 501

http://www.consumercredit.com/

[Dr.Phool]

106. Fuck that FICO score!

[shireen]

125. only super-weathy can afford to say that.

the rest of us are not as fortunate as you. and if you're not super-rich, i suggest you educate yourself before making irresponsible statements like that.

[wroberts189]

131. THIS IS SOLID ADVICE ...I cxld two cards and my score lowered. nt

[wroberts189]

132. Are you married? Apply for new cards and use balance transfers...

If your married use her ss number if not use your own ...720 fico someone is going to give you a card.

Transfer the balance or as much as possible ... it will buy you some time.

Or keep looking/trying for a personal loan... try your local banks and credit unions and tell them you will move your account to them if they will help you.

Another ploy that may or may not work is to call them again and note your perfect history before the accidental error and if they do not reduce the rate back you will use a balance transfer check and pay the whole thing off.

[shireen]

80. dupe-deleted

[SOS]

99. Declare War

We are in the exact same position. My wife lost her job and since then we have lost nearly everything.

(I am not a lawyer. This is just some stuff I've gleaned in my battles with these bastards.)

----------

Opt out of the rate increase. They close the account and you keep your old rate.

----------

Legal letters.

Cory Fine of Jacksonville, Fla., decided to sic "pit bull" attorneys on credit card issuers.
"I have found that the best credit card insurance is a pre-paid legal service. For a small sum each month I can have a group of pit bull lawyers send my credit card issuers a nasty, threatening letter every time they try to illegally reap late fees and over-the-limit fees,".

----------

When talking to the Chase rep, you can invoke your right to file for Chapter 11.
Unsecured debtors get paid last. They won't get much for 3-5 years.
After 3-5 years, the debts will be discharged (except primary mortgage).
Under Chapter 11 an unsecured creditor can protest and demand Chapter 7 liquidation, but if the debt isn't astronomical they'll likely go along with 11 (if they even show up at the hearing).
You can always withdraw your filing if the Chase pigs demand 7.
Once you say "talk to my lawyer, see you at the Chapter 11 hearing, they may change their tune quickly.

----------

Don't go for those debt consolidation scams. You'll end up owing even more.

----------

Another idea: Ask Chase for a settlement of debt. Offer half the balance, close the account. They might take the offer if you're willing to go Chapter 11.

-----------

Sue Chase. They bought Wamu in September 2008. They changed your due date three times in what appears to be 3 months.
In discovery, demand a mountain of documents including the original agreement with your signature. You'll need a lawyer to help you.
You'll likely lose, but you can cost them time and money. They may relent before tying up their lawyer for days on end.

-----------

Familiarize yourself with the Fair Debt Collection Practices Act.

-----------

Take a home equity loan for the amount owed on cards. 30 year fixed home equity average is 5.6%. We lowered our monthly debt service from $1,700 to $350 with this option.

------------

A good source for info is bankrate.com

Again, just some ideas to look into.

TO THE BARRICADES!

[roody]

129. Breathe.

[spotbird]

5. Did you call Chase?

It's possible they'll be reasonable.

[Buddyblazon]

10. They were assholes.

And won't do a damn thing for us.

[spotbird]

11. Try again

A different rep might get you a different result. Really, it works.

Can you renegotiate the car loan? Maybe that lender will be more reasonable.

[hfojvt]

52. I moved a few people off default rates

because I thought it was smart for the company. But supervisors and retention have more power to fix things, but that is only if they want to keep you as a customer. I was never quite sure if the company wanted me to help the people who called, or to explain to them why they don't deserve help (as in, you were late you should pay a late fee per the agreement you signed when you applied for your card, etc.) Some of my co-workers were pretty good at the latter.

[Dr.Phool]

111. I've dealt with them. They are world class pricks.

I got called out of state on an emergency, and was gone the better part of a month. I thought I'd paid all of my bills before I left. I missed the Chase card, and was two days late(the ONLY time in like 15 years). They jacked me up to 29.99 percent. After hours on the phone, I got a supervisor who was willing to reduce the rate to 27.99%.

[tbyg52]

121. Do try again.

We had MBNA do this to us, when our cards were in CCC. At first MBNA wouldn't do anything, but after much calling on our part they agreed to reduce it to 10% if we paid it off within a certain period of time. They did and we did. And they were total jerks. We just got lucky one call, or wore them down, or they were afraid we'd go the the consumer defender at our TV station, or something.

Hey! Do any of your local TV stations have a consumer defenders feature? This sounds like the kind of thing they'd go after.

[ShortnFiery]

6. Keep fighting the jerks. FWIW many of us have "warm thoughts" and HOPES for

your family's success.

Please know that there are many of us and our buddies who have suffered under this recession. You are not alone ... we're with you - AT THE LEAST on your side 100% in spirit. :hi:

[Warpy]

7. First, call them. Explain that the due date that was moved

without notice. Threaten legal action if you have to. Get that rate down as far as they will go, and yes, they will usually budge a little.

Long term strategy has to to include paying those bastards off and getting rid of the damned card. Live on beans for the duration if you have to.

Debt is poison. Income can come and go but debt is forever.

[Kali]

9. stay as calm, but firm as you can and go up the chain

one late payment shouldn't affect interest rate - usually it is 2 in a 6 month period - keep asking them to be reasonable, keep asking to move up the chain to get to somebody that CAN help.

Do NOT get angry and cancel your card. You will still be liable for the debt and it will negatively affect your rating.

If you can't handle the car payments, unload the thing and find a cheap used vehicle to get by on for a year or two.

There are more important things than money or credit ratings or even a home. Force yourself to have a different perspective. Take a breath and think of how many people have none of those things and they still survive - and even experience joy in their lives. It will be OK.

[pnutbutr]

12. my due date gets changed monthly

sometimes it's the last day of the month, sometimes the next to last day, and it has even been as early as the 16th. If you call and talk with a manager they will usually reverse any late charges because they know it's a shady practice.

[MUAD_DIB]

26. Why is it that the CC companies do that!!

I was burned just like the OPer was once. When I confronted the CC company all I got was "Bla bla bla..."

[county worker]

32. If they keep upping the due dates they can get more than 12 monthly payments.

They go on a 28 day cycle or less and you end up making 14 payments a year and most of it is interest that doesn't lower your balance. They make more money and you are screwed.

[northernlights]

105. you're kidding right?

They do it to get you with late penalties and high interest. Period. There was a 20/20 or something on the practice a couple years ago. It's deliberate, it's nasty, and it's how they make *most* of their money.

Another dirty, dirty trick is to time the bill so it arrives right before a major holiday, so the post office will be closed. There are fewer delivery days then for it to arrive, so you're more likely to accidentally be late.

Mine started throwing date changes in randomly. They caught me once with penalties, but I always pay in full. And as a result I watch for the bills closely now. And with the holiday game, I started phoning in the payment -- just call and give them the check number, and you're good.

When they tried to pull that dirty little game on me a second time, I switched to a different card.

[wroberts189]

134. So you will be late if you auto pay through your bank or use Quicken to track when bills are due.

Citi did this to me and told me too bad so sad. So now I have to check the ever changing due date.

[Royal Sloan 09]

13. The evil bankster's got you down too?

Got them mean olde bankster blues, well guess there's not much you can do then,
except sit back and sing them blues boys and girls.
The bankster's hold all our money and they're screaming for more of America's tax dollars to bail them out of their frauds and cheating schemes.
Just when do the people start to get it? That we the people don't really matter, that it's profit for the rich that only matter.

[Beaverhausen]

15. This happened to a friend of mine and she got them to fix it

She wrote them a nasty email, saying how dare they add these charges, change the dates, etc. Shouldn't they be trying to give good customer service to their new customers?

She didn't think she would get results but she did. You should try it.

If you want, I can PM you the email she sent - well I have to ask if she has a copy or not.

[spotbird]

18. Call the state Attorney General

In some states they are fairly agressive about consumer issues.

[Buddyblazon]

25. Sure...can't hurt.

And thank you.

[WolverineDG]

16. pay the house & car notes

unsecured credit cards? f'em.

dg

[Vinca]

17. They keep screwing with the due dates - you really have to pay attention.

I'm working hard to get the bastards paid off, but if they decide to jack the interest rate up before I do, I'll get a home equity loan, send them a check and grind up the cards.

[shireen]

81. please don't do that

credit cards are unsecured debt.

if you take a Home Eq loan and something happens and you can't make payments, you're in danger of losing your home.

[Statistical]

102. +1

Too many consumers make decisions a business would never do.

Why pay unsecured debt w/ secured asset and now it is at risk.

Also lots of people pay medical bills w/ credit cards (even though they don't have money).

Medical Bills can be negotiated down to 0.60, 0.50, even 0.30 on the %.

No CC is going to pay your medical bills then be will willing to take a loss.
Medical bills much easier to discharge than CC in BK.

Too often consumers move debt further up the chain and put at risk their assets.

Medical Bills (or other bill) -> CC -> Home Equity Loan

[LostinVA]

20. Call your Congresscriiter -- seriously

They have helped people fix this.

[wryter2000]

21. Call your Congressperson

If your Congresscritter is worth his/her salt, a phone call from their office might be of help.

Oh. and hey...do you have a friend who's a lawyer who could write a letter? I'm wondering if you tell them they've pushed you into bankruptcy if they'll reconsider. They'll get more by working with you than they would from the bankruptcy court.

Best of luck. They're not vultures. Vultures serve a useful function on Earth. They're vampires.

[hedgehog]

22. I wonder if these practices are getting to be more common or if

people just were too ashamed to say anything before? I don't think the OP needs to be ashamed, and I tend to agree with the poster above who said pay the other bills first.

[Froward69]

23. Mortage, food, utilities, then

the car payment. send the CC company what is left. as long as you make some sort of payment it cant be sent to collections.

]Go back to basics. roof food gas and lights.

have a garage sale and sell stuff... clean out the garage, old toys, clothes etc.

[Muttocracy]

27. Is there a credit union in your area? Helped me get free of Chase

I had problems when Chase bought my other credit card and I could no longer play them against each other. I've always had credit scores in the high 600s to mid 700s. I didn't even have a late payment, always paid at least the minimum, but they decided I "wasn't paying down my balances fast enough"....so they doubled my rates, which meant MORE of my payments were going to interest, so the debt would last even longer.

Eventually I was able to refinance part of into an installment loan with a local credit union. Since then I refinanced that at a lower rate with another local bank and added my student loan (which under W had its interest rate skyrocket). I'm making slow steady progress filling the giant hole, but the credit union really saved me.

[county worker]

28. I feel for you. I lost everything in the 90's so I know how it is.

All I can say is that you have to take your lumps and get back in the game. I'm doing OK now but I could lose everything again if jobs are lost as before.

I was on the verge of homelessness when I got a $8/hr labor job. I built my life back up and now we OK.

This is what I learned. You have to keep trying to get out of the shits. There is no guarantee that what you do will work but if you don't try there is a guarantee that things will not get better. Keep trying to get back to where you were. Don't give up.

[izzybeans]

29. Chase has changed my due date numerous times in the past few years.

I've gotten no where with them on the phone either. I'm not in your situation but I had to take them off automatic payment because of this.

My interest rate went from 11 to 29 for one missed payment.

it's a scam and they pretend it never happens.

[earth mom]

31. IMHO-Pay the bastards what you can afford, but don't lose your house over this.

Here's a good book I read many years ago when my husband had lost his job and couldn't get a job paying the same.

We suddenly became the working poor and were drowning in bills & debt.

http://www.amazon.com/How-Debt-Stay-Live-Prosperously/dp/0553382020/ref=sr_1_1?ie=UTF8&s=books&qid=1241715881&sr=8-1

The book is based on the 12 steps of Debtors Annoymous.

I'm agnostic, not religious, and amazingly the book helped me get a grip and gain some perspective and serenity.

Don't let the creditors steal your life from you.

[ljm2002]

33. Keep calling them...

...the first rule of dealing with any bureaucracy, is: be polite, but persistent. Do not take "no" for an answer. Ask to speak to the supervisor, and then ask to speak to *their* supervisor, if necessary. Explain the situation to each one of them. Make them look at your payment record, so it is easy to verify that this late payment was an anomaly with a simple explanation.

As others have suggested, talk to a credit counseling agency and the Attorney General of your state. If you have any attorney friends, maybe a letter on their letterhead could help.

Finally -- call your congress person. They will often try to help people when they have situations like this.

Good luck!

[wroberts189]

135. VERY GOOD ADVICE nt

[michreject]

37. BoA just moved mine to 11.9% from 7.9%

I wasn't late or anything. I've had the 7.9% for 7 years. It pisses me off.

[carlyhippy]

68. BOA sent out a mailer about 3 weeks ago, it looked like of those "privacy statement" letters

it stated that your interest would be upped to 11% if you didn't call the 800 number and opt out. I did do this, and they said if I were to use my card or was late on a payment, that the interest would automatically jump up. I don't use mine, it was used for a balance transfer, so I won't be using it again, hopefully it will stay at that level until I get the thing paid off.

[myrna minx]

90. I opted out of a BOA rate hike a year and a half ago.

I never use the card, so I'm just paying down the balance. So far they've honored my opt out. I had to send in my "opt out" in writing--they wouldn't do it over the phone. When they claimed to have not received my letter, and I had to fax my copy to a service rep, who eventually honored it, but I was stuck paying the huge interest charge for that one month. Hucksters. All of them.

Make sure they will honor opting over the phone, because they demanded it to be in writing from me and still screwed me over for that month.
I have one more year to go on that bad boy. :hi:

[Buddyblazon]

38. Diana DeGette is my local congress person

Do I call her local number...or her Washington number.

[spotbird]

41. Do you pay for long distance?

If you don't, call Washington. It's possible they'll tell you the person handling constituent complaints is local.

Also, do try you state Attorney General. This is a hot issue, so they may take an interest.

Did you call Consumer Credit Counseling?

[rockymountaindem]

42. Local number. Those people do the constituent casework

Also, call both our Senators. That's what their office staff is there for. Trust me.

[Buddyblazon]

55. Robert with DeGette's local office was very nice...

took my name...my number...and said he'd call me IF...and then the phone broke up and I didn't hear what he was saying.

He was nice...but I really got the feeling it was just platitudes.

[rockymountaindem]

75. Call them back in two days

Did this person sound like an intern? Maybe if you call again you should ask for the casework director. Try Udall and Bennet's offices too. They'll have people.

[hunter]

39. Don't worry, be happy. Seriously.

We got tossed over the falls by medical bills.

Once you reach the bottom you don't give a shit about credit ratings, collection agencies, and all that rot because you can't. When we were bouncing over the rocks I began to joke around with debt collectors. This comforted the ones who hated their jobs and infuriated the ones who liked their jobs because they bullies. Being polite got a couple of nasty debt collectors to fly off the handle, and then amazingly, those agencies never called back. Hah, hah, they warn you they are recording the calls and then they catch themselves being nasty assholes while you're just a friendly fellow down on his luck.

Pay the mortgage first, pay the utilities, etc., etc.. and get on with your life as best you can. If you can't pay the bill, you can't pay the bill. Pay it when you can, or declare bankruptcy.

The most important things in life don't have anything to do with money. Be easy on yourself. You didn't crash the economy -- people who grant themselves multi-million dollar salaries did.

[Zodiak]

97. An excellent post

I honestly do not see why people go crazy over these credit scores.....some even killing themselves out of despondency.

Your life is not your credit rating....fuck these people and their usury. Let 'em pound sand.

[avaistheone1]

112. Call the local consumer watchdog in the media - for example

http://www.kgoam810.com/showdj.asp?DJID=42426

Guys like these do a terrific jobs getting the big corporations to act half way decent.
I know Michael Finney has corrected a lot of wrongs. I hope there is someone like him in your area to help you out.

Really best of luck.

[Buddyblazon]

40. Just called them again.

Asked for a supervisor. Got him on the phone. He will not help me.

Asked him how he slept at night. He said very well and said we should've been responsible like him...by using automatic withdrawal...even though I already told him we use automatic withdrawal.

I told him, "You have a great day...and don't forget to go fuck yourself."

[spotbird]

43. As difficult as it seems

try not to do that again. They'll flag your account, which won't help if someone else is able to intervene.

You are justifiably very upset, but you have to pretend to be calm.

[Buddyblazon]

45. I was calm until he used that line about...

him being responsible and using automatic withdrawal...after I already told him we use automatic withdrawal.

And I even said it in a very nice and pleasant voice.

Flag my account? So. What are they going to do? Raise my interest rate on me?

[spotbird]

54. No, but you may have to talk to them again

and someone trying to help you will as well.

[Buddyblazon]

58. Let's be honest spotbird...

Chase isn't going to do a damn thing. They were perfectly within their rights (the present shitty day rights).

It doesn't matter WHO talks to them. The only way is for us to figure out how to pay them off asap.

Going back to the bank in a few minutes. They said we may qualify for a lower line of credit. So...we'll try that.

[spotbird]

62. Please don't mortgage your house

because of this bill. It isn't worth the risk.

Consumer Credit Counseling can negotiate with Chase.

[Statistical]

104. +1 Very bad idea

1) Make a budget, get rid of non essentials (cable, cheaper internet, smaller cellphone plan, cut off house line if u have cellphones). See how quickly you can pay it down.

2) If you can't pay it down within 9 months (and you may not be able to) then try credit counseling. You will take credit hit but they can get interest cut and work out payment plan.

Only if #1 & #2 fail should you look at home equity.

You are trading an unsecured credit line for a secure one. You are backing up a promise to pay with your home.

CC company can never take your home. Never. They can make your life miserable but even in BK a home and certain amount of equity is protected asset.

AS soon as you transfer the debt it is now risking you home.

Medical Emergency, Job Loss, Legal problems. Who knows what will happen in next year.

Businesses NEVER trade unsecured debt for secured debt. Never. Not unless they get a cut. i.e trade $5 mil in junior debt for $4.2 mil in senior notes at higher interest rate.

[SOS]

120. Interesting

Could you refer me to a site which explains this?

Wouldn't he be better off getting a 30-year fixed-rate home equity loan at 5-6%, pay the cards in full and then destroy the cards?

Then he would have one, fixed expense.

On edit: I found the answer to my original question:

" Credit card debt is unsecured, which means the credit agreement does not name anything as collateral for the loan. Therefore, items purchased with a credit card cannot be repossessed. Keep in mind, however, that the creditor can always sue you in court to recover the money you owe. If the creditor wins the lawsuit, it may be able to garnish your wages or put a lien on your property."

So they can't take the house but can get a lien on it until it is sold...

[Egnever]

142. Not if its your sole place of living and you have homesteaded it.

I dont think they can. If you are homesteaded I dont think anyone can touch it. Except the bank if you dont pay for it.

[Egnever]

143. Some info

http://www.motherearthnews.com/Modern-Homesteading/1982-07-01/Stop-Financial-Downfall.aspx

Though they vary from one state to another, homestead statutes are similar in intent. They're designed to preserve family homes, which might otherwise be taken in times of monetary misfortune or upon the death of the head of the household. In general, this protection is available only if the declaration is filed in advance of such a catastrophe.

Of course, a legal judgment resulting from business losses, auto accidents, or suddenly inherited debts could take a family's savings . . . but with the safeguards provided by homestead statutes, their house and land would be protected up to the amount of exemption allowed by their state.

[imdjh]

130. Press the button for the Spanish Language option

If you call between noon and 11PM on a weekday this ought to guarantee that you will be sent to the Arizona call center. The offshore call center will be useless to you.

When the operator answers in Spanish, say, "I'm sorry, I must have pushed the Spanish button, can you help me?" The operator will switch to English.

Tell him what the problem is and he will tell you that he can't do anything. Ask him if you can be transferred to retention because you are going to need to close the account if this can't be resolved.
DO NOT tell him to close the account, because if you do, and he does- game over.

You have an internal credit score that the operator can see. If you are eligible for "retention" then he will transfer you- if you aren't, then ask to speak with a supevisor.

If you get transferred to "retention" then you will probably get what you want.

I wish I could be optimistic, but as an acquired account you probably won't get what you want. If you don't have a banking account with Chase, then you don't get treated as well as if you did. If you don't live in New York, you don't get treated as well.

If you go the supervisor route know this- Chase employees cannot hang up on you, not the ones in the US anyway. There are two levels of supervisor above the first supervisor you talk to. If you ask to be escalated past the first supervisor- they will try to get you to hang up and write to an address in Delaware. I have NEVER heard of anyone getting anything out of the correspondence address.

Now when I say that they can't hang up on you, that doesn't mean it doesn't happen. If you get loud, they will put you on hold, or the favorite trick of speaking calmly to you and hanging up in the middle of a sentence so it seems like you were cut off. I know you shouldn't have to be especially nice, but it doesn't hurt. These people can be more helpful when they want to be.

[EFerrari]

46. Moving that date around sure makes it seem as though they're fishing

for ways to increase the interest rate. That should be illegal.

Makes you wonder if anyone has sued them for this crap.

[AnotherDreamWeaver]

44. Best of luck, back in 1979

I was unable to pay a debt that had been accumulated. (Spent 6 months in South America after fixing up a couple of flats my partner had owned with another guy and selling it. When we ran out of travelers checks I just started buying them with my credit card. My 'partner' had the money in his account, I thought we would pay it when we got home, but he said "fuck BofA" and all hell broke loose. The credit card company even called my Dad at work and complained about me. But they finally settled by saying they would stop adding interest and let me just pay off the bill when I could. Work was hard to find then and I never again held a steady job with a reliable income.) I know the laws have changed since then, and I am sure it was in favor of the Corporations. Like others have suggested, try to get some financial counseling to work this out.

[Hissyspit]

50. Chase pulled some shit on me, too. I was with WaMu. Signed up for the credit reports.

Wamu gave you one FICO every month for free. I reluctantly signed up for Chase's for $13 to continue to get it. A week ago they sent any email saying you could only get a new full report every three months. Paying for less what I used to get more of for free. They do send out a email update monthly to let you know if there has been a change. Not the same thing, though. Not anywhere as serious, just another example of how they stink.

[MercutioATC]

69. Deleted.

.

[marmar]

59. Chase is the absolute worst......When I was finally released from the tyranny of their VISA.....

..... I sent a nasty letter detailing how much they suck.

[Carni]

61. Try to get the email address of the CEO

I don't know if you can still get ahold of CEO email addresses by googling, but I used to do it every time I had an issue with a company.

First look up the name of the CEO--then search @chase.com and try to see if you can snag the name of anyone at the company to see how they structure their email adresses -- use that as a guide and try it with the CEO's name (hope I am explaining this correctly)

In any case if you CAN get the CEO's email address, then compose an email explaining your entire situation, politely tell them that you prefer to work this out without going to your congress person or the media. Include your phone contact info etc.

In my past experience when I did the above, I did get a result--usually a call from someone pretty high up in whatever company I was writing and typically I did get my problem resolved. I did this for all types of problems--bad products, credit card issues etc.

I don't know if you can still snag an address in the way that I describe above, but it's worth a try.

CEO's apparently don't like getting emails of complaint from the common citizen!

Good luck!

[Buddyblazon]

65. "J.P. Morgan Chase CEO Jamie Dimon"

Jamie Dimon...got his name...will try finding his email address.

[Carni]

[email protected]

The above is what I just found on the net--actually as dumb and obvious as it may seem that probably is his email address!

Give it a shot anyway!

[Carni]

72. [email protected]

The above is what I just found on the net--actually as dumb and obvious as it may seem that probably is his email address!

Give it a shot anyway!

[Changenow]

74. Executive Customer Service at Chase

http://consumerist.com/5008006/reach-chase-bank-executive-customer-service

[crazylikafox]

133. I watched Jamie Dimon in the Congressional Hearings.

The Congressmen REALLY went after him on this particular issue. They all said they were getting complaints about these shady rate change practices. Dimon played stupid & said he didn't think it was going on but he will check on it. The customer who was used as an example magically got his card rate fixed the next day. If your local Congress Person doesn't help you, call your Senator ASAP. Dimon knows he's in trouble with Congress about this already. YOu may get some action.

[Terran]

64. I think it's been said already but

try working with Chase some more. You might be surprised how they react when you simply threaten to take your business elsewhere. And it may just be a matter of who you talk to. I had something a bit similar happen with my Citi card--my credit union reformatted acount numbers and I never received notice, so the account info they had was wrong and a payment got returned; they bumped the rate to 29.99% and imposed fees. When I explained what happened, they relented. IMO with all the cards changing hands these days it's hard to keep track of due dates, especially when you've been relying on a fixed date for years and paying via the web.

I've been through some very rough times financially, and one thing I learned is, you have to be proactive. Easy to fall into depression about it and let the chips fall, but you won't like the outcome. Talk to them, badger them, plead with them, threaten them, reason with them, do whatever it takes.

[TexasObserver]

70. Secured assets should be kept current, at the cost of unsecured.

It's an easy choice. If you have equity in a car, a house, or a boat, make sure you keep those notes current.

As for unsecured debt, such as most credit cards, pay first the ones that treat you best, and pay last the ones that treat you the worst. Better to default entirely on two credit cards than to let any of your secured debt go into default.

There are plans that might help, but if you're having a problem with one creditor, stop paying them and focus on the other creditors.

[MercutioATC]

71. My advice? Stop sending them ANY money.

ONLY if you can take the hit to your credit score.


I had a WAMU card that I paid online every month 4-5 days before the due date (not an automatic transfer, I made the payment myself). The payment always cleared my bank account at least 2 business days prior to the due date.

WAMU started charging me late fees.

I repeatedly called and demanded that the charges be removed, but they refused....so I just stopped sending them money. When they called, I stopped them and asked if they were ready to credit my late charges. They usually didn't know what I was talking about (different department does collections) so I hung up on them. They were subsequently bought by JP Morgan Chase.

I got voicemail from them about 5 months later advising that they has an offer for me. When I called, they said that they'd forgive 40% of my balance if I'd agree to pay off the remaining 60% over 4 months. I agreed.


I wasn't looking to get out of any debt I owed, I was just looking to have three late fees credited. My FICO will get hit (doesn't matter to me, I bank with a credit union that doesn't look at FICO) and I'll have to declare the amount forgiven as income next year, but it certainly fixed the problem.

[shireen]

77. send this to Bernie Sanders

sanders.senate.gov
he's collecting outrageous stories like this. he's preparing for war against those assholes in a big way.

[The River]

82. Credit is a "Product"

I quit "buying" 10 years ago.
A medical bankruptcy forced me into
a cash and carry lifestyle. I learned to save.
Every dollar of interest I no longer had to pay,
the price of every impulse purchase I couldn't make,
the new car depreciation that never happened,
all the nights on the town that didn't show up
on my waistline,
went into the bank (and my daughters college tuition)
When I got laid off last week I offered up a silent
"thank you" to the faceless bean counters who refused to
negotiate and forced me out of the system 10 years ago.
With a little belt tightening I can last 3 years.
Social Security starts in 2.

I understand your situation. I was on the
edge of broke for nearly 30 years. I failed to "keep up".
I could no longer be a "good" (credit worthy) consumer.
I don't have a "do this or do that" answer for your dilemma.
All I can say is that bankruptcy isn't the end of the world
despite what everyone says. That it "ruins" your life is
the "Big Lie" within the credit card con game.
All it really ruins is your ability to live beyond your means
in a consumer culture that's out of control.

Sure you'll have to save more and consume less but it will
reduce your overall carbon footprint. It may force you to plan
ahead and be more thoughtful about what you do buy and when.
It's quite possible you'll eat healthier because meals from
scratch are a hell of a lot cheaper than frozen, processed crap.
You may experience bouts of increased empathy and gratitude when
you encounter people with even less than you. A sense of accomplishment
happens every time you purchase something special that you've saved up 12 or
18 months to get. It's yours, free and clear. No payments to make.
I find I take better care of my toys because they took a while to get.
Best of all though, the next time the sh*t hits the fan, you'll
have something to live on instead of facing a pile of high interest bills.

Didn't mean to turn this into a rant. I'm still adjusting to full time
vacation mode until the economy improves and not having to panic over bills
until it does.
And now, the sun has returned at last and my paid for carbon
fiber bike awaits.

[Phoebe Loosinhouse]

115. Beautiful post. Thanks. nt.

[mike_c]

154. excellent post....

All I can say is "me too!" Except I'm not as far along as you-- I'm 54 and got out of the credit scam five or six years ago. I've had some unexpected expenses recently that have hit my savings-- and I save like you do, nickle and dime, but it slowly accumulates. That, and the inexorably declining purchasing power of my salary, are beginning to put some strain on living within my means, but I know this is temporary. Either we'll recover-- the overall economy will improve and my boat will be lifted along with everyone else's-- or I'll adjust to the new pressures and establish a new equilibrium a little further down the socioeconomic scale.

Anyway, good on ya' for making it to the end intact! Many fine bike rides, my friend! Many fine rides! :hi:

[davsand]

85. Use the fair credit act to protect yourself.

Make them validate the debt--NOW. I am not a lawyer, but this has been discussed on DU before and you can maybe help yourself with this information:



http://www.attorney-in-alabama.com/not-pay-debt.html


Good luck, and don't give up!




Laura

[high density]

94. Warning: This is disastrous to one's credit rating

When you start disputing debt it goes on your report, and you get hit hard.

[Pithy]

114. Actuall;y not true

It doesn't hurt your credit one bit to dispute and ask for validation that a debt is actually yours. Where are you getting your information?

[tammywammy]

86. Makes me glad I don't have credit cards. n/t

[Dyedinthewoolliberal]

87. Write, call, visit

your Congressman, Senator etc. Raise hell with the politicians. If it looks bad, file a Chapter 13 reorganizing plan. It puts your assets our of reach while you figure a way out. The big guys do, so should you :)

[Gman2]

89. Give them one chance. Then, get ready to pay cash and fuckum.

Dont pay, if they wont do integrity. Tell them to pound sand. I did. They had me paying, only to get an ever higher total, ad infinitum. I said, I will not pay. They went away.

[jmg257]

91. Used to be you could get a new card from a new company with free balance transfers.

Are these still available? Would your recent situation have impacted your ability to get such a deal?
It could be a worthy 'start over' if still available.

I used to do it fairly regularly to keep from paying interest.

[myrna minx]

103. The new common practice is a 3% of the balance charge, so you have to do your

homework to determine if the transfer is really worth it. Depending on the offer, it can be a great deal, or actually cost you more money in the long run. Gone are the days of "fixed" for life rates and free balance transfers.

[newinnm]

96. Dont Pay!!!

So you stop paying, they send you threatening letters then they turn the account over to collections. After a year or so you can pay it off for pennies on the dollar.


nmnm

[NeedleCast]

100. First, Don't Set Up Automatic Payments

Because this shit happens all the time and the CC companies love it. Less people they have to hire to process payments and easier to screw you when they do shit like this.

[rucky]

147. +1

They come out at a specific date each month. Paychecks usually don't. It totally takes the control out of your cash flow.

As soon as I get paid (today!) I pay off my bills online, so they go out first. I split the credit card bill into two payments each month and try to do double the minimum to stay ahead that way.

[Pithy]

113. Take a deep breath - we can fix this

I know exactly how you feel right now. Been there, done that.

First of all, one late does NOT mean you are going to lose everything. I know it's very overwhelming to look at the big picture and all the bad stuff you fear could happen. But this *is* fixable.

Your student loans can be put into forbearance until you feel you can breathe easier. This is not a long-term fix - just a temporary thing to help you catch your breath. I don't know who you have your and your wife's student loans with, but if they are with Sallie Mae, one phone call can put them into forbearance for 6 months - a year.

Next, it's imperative that you not be late with the car payment. They actually won't report it as late until it's actually 30 days due. After 15 days, they will impose a late fee but still won't report on your credit reports. Can you pay the car payment now?

Now, as for Chase - they're pigfuckers. The poster who said they've moved due dates around in the hopes of catching clients in the late/ratejack trap are exactly right. What other cards do you have and what are your balances on them? I ask that because if you have a relationship with another card company, i.e. Citi, you might be able to get a 0% balance transfer offer from them. You can BT the Chase balance over to that card and then plan from there.

You are NOT alone. This is happening to thousands of consumers across America right now. The major card issuers are A) broke because of their horrible speculation and gambling in the previous good market and B) trying to ratejack while they can before the new credit card laws go into effect.

A couple of things I highly recommend: 1) check your credit card, mortgage and car payment accounts online frequently. I'm OCD about my credit, so I do it every morning over coffee. That's how I've caught the few creditors who tried to move my payments around and was able to pay them before they were late. 2) go to creditboards.com and post your dilemma there. There are tons of people who have been and currently are going through exactly what you are. It's a group very much like DU - people who have come together on a message board to get help fixing their credit, and it's a very open, friendly and helpful environment. I know without a shadow of a doubt that you will be able to figure out a working solution to your problem with the help of the wonderful people there.

I'm in no way affiliated with that message board - just know that I started there with scores in the low 500s and am in the mid-700s across the board. The help I got there was invaluable, and I did NOT have to pay off or close any cards OR sign up for credit counseling. I learned there that anything a credit counselor will do for you, you can easily do yourself.

Feel free to PM me if you have any questions about your situation - I will be glad to help.

[TwixVoy]

117. A couple points here...

When you have so much debt that a rate jack from 14% to 30% will send you completely under you NEVER make your payment the day before or the day it is due. You make it ASAP after the statement cuts just for this reason.

"Just got a call from the bank that has our car payment. It was due monday. Wife hasn't paid it yet."

If you can't make the car payment you are in over your head regardless of the rate jack.

"I'm so bummed. I've spent years reclaiming my credit. I was in the low 500's"

After that experience you should have learned to STAY AWAY from credit. Best advice for ANYONE.

The fact is your are going to go under again. No big deal. Chapter 7 it and STAY AWAY FROM CREDIT FROM NOW ON! It is DESIGNED to do this to you.

What you need to realize is that you don't need a nice car. You don't need a damn credit card. It is a freaking MIND GAME. Live with out it from now on. If you can't have the newest consumer toy then who gives a damn? Really? Make your life about other things.

Otherwise you will turn my age one day, look back, and ask your self why the hell you let your self believe the corporate bull shit and wasted your life on such shit.

If you can't make the payments don't. BIG DEAL! SCREW THEM! Leave the debt cycle the banks have kept you and millions of others in.

[Buddyblazon]

137. You don't know the whole story...

You shouldn't jump to conclusions.

Nice car? I have a 2001 minivan. Wife has a 2002 Mitsubishi...paid off.

Don't assume...well...you know the rest.

[kaygore]

119. This is my post from yesterday

Although it is not a solution, Sanders needs to hear from you and so does you congress person and senators:

Bernie Sanders needs our help re credit card companies

Please take a minute to respond:

http://www.sanders.senate.gov/qa/creditcards.cfm

http://www.sanders.senate.gov/polls /

Thank you. This is another serious area of concern for too many people.

Good luck!

[lumberjack_jeff]

126. Protect a) your family b) your stuff c) your credit score.

Pick any two.

Personally, I couldn't care less about my credit score. Last I checked it was like 800, but so what? It doesn't improve my quality of life.

[shireen]

136. 800 ....

that should get you great interest rates on future car purchases and mortgages.
otherwise, no it won't improve your quality of life.

:eyes:

[lumberjack_jeff]

151. Why is a good interest rate on a new car of benefit?

12 months of ownership decreases its value by half anyway. Interest is a pretty small part of the cost of ownership.

Better to pay cash for a shitty used car and take it to the junkyard if it breaks badly.

I do my best to honor my obligations. Beyond that I really don't give a shit about the credit scores. I wouldn't feel a sense of obligation to pay their 30% interest.

[Statistical]

152. 800 vs 600 credit score is like difference between 4.5% mortgage and a 6% one.

Of course that assumes you could even GET a 30yr fixed w/ 600 FICO.

For the sake of argument lets say you could.

$250K 30yr fixed note:
4.5% = $1266
6.0% = $1498

4.5% vs 6% on 250K home note = $232 difference per month for 30 years.

$233 * 12 * 30 = $83,500.

Yeah an extra $83,800 in the bank for the exact same house is what I call a "benefit".
The $83K doesn't even include how much it would be worth if you put it in a CD and collected interest as it grew.

Even better take the 4.5% note but pay the 6.0% payment. Knock off $233 in extra principle each month.
Pays the note off 8.5 years early and brings your saved interest up to $152,796.

Nah I guess 150 grand saved because of a "stupid score" is not a benefit.
If it was $160K now that would be worth it.

[DatManFromNawlins]

139. Pay the important bills first.

Remember, they can't take your home from you. If you can manage to squeeze out some equity to pay the cards off, then do so. If not, then look at it as a warning: you should never put more on your card than you can pay back in a month. What in your budget can you eliminate to help make up the difference? Cable TV? Vacations? Eating out? New car? Can you hold a garage sale to make up some of the difference? The worst they can do is take you to court and probably settle for a fraction of what you owe. But until you know you can pay them back, if you aren't going to continue to give them money, make a good faith effort to go through credit counseling.

And if that doesn't work, and you find you still can't make those payments, stop acknowledging the debt.

Every time you do, you restart the statute of limitations. Most states have a drop dead date, which ranges from 3-10 years. This is the amount of time that a creditor has to sue you from your last payment before the debt becomes old debt. After that point, if they do sue you and you show up to court and show that too much time has passed, they won't get a dime. Won't help your credit any, but it also puts you in a superior position for bargaining.

Look at the bright side, though: you have a house. This is the MAIN purchase in your life for which you will need credit for. You can always purchase a car with cash, but most people need credit for a house.

[rucky]

145. Take out some equity, pay off the card and cut it to pieces.

You'll be trading high-interest debt for low-interest debt.

[TWiley]

146. Sears owes me $74 and I am not getting 30% for it.

Sears pulled pretty much the same crap with me. They charge a full years interest ahead of time, then you have to pay on that too. When I got pissed and paid it off in full, they owed me $74. I have to wait 6 months to get it, and they are not paying me any interest. I want to earn 30%

[Yo_Mama]

148. Threaten to File A Complaint With Their Regulator

JPMorgan Chase Bank is regulated by the OCC.

The complaint page for OCC is here:
http://www.helpwithmybank.gov/complaints/

Sit down and write up a concise summary of what happened. The fact that your payments were autodeducted kind of makes the case that you were steady paying in and of itself.

Call Customer Service. Demand to speak to a supervisor, and inform anyone who demurs that this is your final contact before filing a complaint about unfair, deceptive and misleading business practices directly with the OCC. Also ask for their complaints address. Tell the person that you will also be contacting your state AG, the FTC, and your congressional representatives.

When you are speaking with the supervisor, lay out your facts. Ask them to check the facts - that you were an on-time payer for ten years, and that the payment date was changed, and that made your auto-deduction late. Ask the supervisor if he/she disputes any of this, and get the person's name and official title. Tell the supervisor that you are willing to fax the copy of your complaint letter to the OCC to the supervisor if they will give you a direct fax number.

I'll be back later today to post some information on what should be in your complaint letter. You are going to be explaining that you intend to keep paying your debt at the old rate, that you do not intend to charge any more on this card until the error is fixed, and that you will recalculate your payments each month as best you can using the 15.99% rate, and then send in that amount.

You are also going to be alleging that you have heard from other JPM Chase customers that this is affecting many other customers. I will get back with the link to various OCC regulatory and interagency stuff that should add a little punch to your letter.

Banks are required to answer official complaints. They hate them, and in this environment should be positively allergic to them. You should be able to force them to roll this back. Don't give up! I am almost certain that you can succeed in getting them to reverse this.

Make sure you get that car payment in. I think your wife cannot handle the stress and that you will have to take over paying the bills. If you need some margin, cancel cable or other subscriptions, and eat baloney for 1 week a month. You haven't fought back to a 720 from a 500 without really working at it, and you don't have to let this deep-six you. If you have to take over the money management from your wife, do so.

It would help if I knew your state of residence, because I might be able to find some good state contacts for you.

[Lydia Leftcoast]

149. Get in touch with your local chapter of the National Lawyers' Guild

(leftist lawyers) and see if there's anyone who specializes in protecting people from vulture banks and credit card companies.

(If you're in Oregon, I can PM you the name of a specific person.)

[Old Hob]

155. send President Obama a letter. I hear he reads them.

Clearly he needs to hear about this CC BS because you aren't the only one getting screwed like this.