Many Credit Card Companies Now Offering To Cut Credit Card Balances
July 3, 2010
According to the NY Times, many credit card companies are now willing to settle with card holders over delinquent balances. As the economy sinks deeper and deeper into financial woe, credit card companies would prefer get what they have the ability to than get nothing at all.
The NY Times is reporting “many credit card issuers have revised internal guidelines to give front-line employees the power to cut deals with consumers. The workers don’t even have to wait for customers to call and ask for a break.”
Dont get too excited just yet. Not all credit card companies are adopting this new policy. Bank of America and American Express say they decide on a case-by-case basis whether to accept less than the full balance. Other card companies refuse to discuss the subject. The American Bankers Association does however acknowledge that settlements are becoming more common in these tough economic times.
This change in policy comes as a result of the credit card reform bill that makes it harder to raise rates on existing balances and prevents certain automatic fees being added to your balance thus making it harder to pay off your debt.
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