If you said “you bet”, fair enough. I can
certainly understand your opinion that settling with credit card companies
could be unethical. At the same time, it’s not unethical to resolve your credit
card debt if you cannot afford to pay it. If the lenders agree to receive less
than the total owed, what’s wrong with that? Not surprisingly, people’s
expenses alter continuously. There is no guarantee exactly what the future may
With the economic crisis, several debt collectors are
usually negotiating for reduced amounts than normal. Prior to the economic
downturn, the typical settlement amount ended up being approximately 50%.
Today, the typical settlement has been reduced to roughly 42%. This would mean
that the usual negotiation repayment is only around 42 cents on the dollar.
When settling with the creditors, you’re simply paying back
what you can manage. If perhaps you all of a sudden quit paying your credit
card debt for no legitimate explanation, that would be viewed as unethical.
Is This Unethical? You Be the Judge
A creditor offering $30,000 of credit to someone and
encouraging her to make minimum monthly payments so the lenders can easily
obtain about $321,000 in principle, interest, fees and penalties after payment
is made in full!? creditcards.com will show you the length of time it will
require to pay-off a charge card debt.
How Greedy Can They Get?
Is this moral? Changing your due date without informing you
so that they can charge you a late fee? This happens constantly. If it’s stated
within your contract, they’re able to do it. Making your monthly payments about
ten days in advance may be the only possible option (unless of course you want
to contact customer support each week to find out if the creditor has changed
the due date!)
Is this ethical? Creditors, for no clear explanation, raise
your interest rates to 29.99%, even when your credit is good? Picture that. You
do not miss a monthly payment and all of a sudden you get a notification that
tells you that your interest rate will be higher. It’s taking place a lot
nowadays. However, President Obama signed a bill that will stop lenders from
increasing rates to outrageous percentages.
Is this process ethical? Changing your billing period so
that the payment will become owed on a Sunday, to enable them to assess a past
due charge since they are aware the banking institutions don’t wire the money
on that day!
These are just a few of the many ‘stunts’ the lenders have
up their sleeve. It really is regrettable that the credit card companies are
taking advantage of consumers.
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