Get Out Of Debt With Scott

This video is a couple years old, but funny nonetheless.

“The Tennessee Credit Card Massacre”

This is a must watch Video about the Bank of America – Merrill Lynch Financial Fiasco
Take 55 minutes and educate yourself on where Bank of America is at today…….Scary stuff

A reader of my blog was kind enough to share this information with me today and thought it was important to share with you. The Credit Card companies are now including a change in your credit card agreement to include the ability to call your cell phone or text you with messages about your account.

Here is an example

So what does this mean to you? Essentially it means that this specific bank (name withheld) can call your cell or text you with information regarding your account. The first thought would be “awesome” another channel that they can reach me about my account. Will you be able to text them back? My guess is no.  What this will mean is that if you are a day late or over your limit, be prepared for text hell. Also, better sign up for unlimited texts because in this Change in Terms you agree to pay for all of these texts. There will be no barrier to stop banks from barraging you daily with text messages about the fact that you missed a payment.

This is just one bank…..get ready I am sure the others have their statement insert Change in terms ready to be mailed out shortly.

Pass this on to anyone you know that uses credit cards. This may just be the beginning of even more ways for the banks to reach you. It would be interesting to see if they would include “Facebook or Twitter” as methods of communication. Scary Sh*t IMO.

This is from today’s ABC World News. What I always find interesting is that the American Bankers Association always uses the same flawed logic to justify the repricings, which is the auto insurance logic. Riskier drivers pay more for insurance, so therefore if you are risky with making payments you should be charged higher interest and fees. This is a must watch video.

Well, unless you have been hiding in a rock for the last couple of weeks, you undoubtedly have read at least one story about credit card companies, pending legislation or Obama speaking about credit card reform. So where does that leave you the consumer? In my opinion, the banks may end up eventually making the required changes, but these changes will come with a huge cost. Banks historically have more paid lobbyists than almost any other industry. Their “deep pockets” fight long and hard against anything that will have a negative impact to their bottom line. Contrary to some people’s belief how great the banks are with all of their community programs and charitable donations, Banks do not do this because they are warm hearted organizations. They do it plain and simply because they are required to in the “Community Reinvestment Act”. Don’t think for a second that they would do it unless it was required by LAW. Are all banks bad? Absolutely not, however the old money center banks are clearly only interested in one thing, profits. If you have ever had an issue with your bank, you know exactly what I am talking about.

Here are a couple of the bigger stories that came out this week around banks and credit card companies:

Weighing the Options with Credit Card Debt via NY Times

Will Credit Card reform cut off Consumers via WSJ Blogs

Chase Rewards Card Nerfed via the Consumerist

Obama asks Congress for Credit Card Reform Bill via LA Times

Credit is Evil, without it you can Live!

This is a bit long, but absolutely hilarious. Via Hulu.com

President Obama had a meeting with the Credit Card Execs. Below is an excerpt from C-Span

Here are the highlights-

Strong and Reliable Protections for Consumers
Rate Hikes, Late fees

Forms and Statements in plain language

People can comparison Shop – Terms easily accessible online

“Plain Vanilla Credit Card”

More accountability- More oversight

This just in- Credit Cards are the most lucrative money making machine that any bank has in their portfolio. This my friends is going to be painful in the worst way. The banks will end up using any “oversight” as justification for adding additional fees, jacking finance charges up and coming up with new terms and conditions. Not to mention the fact that the banks are already in hyperdrive with their repricing campaigns right now. Look I spent nearly 20 years in the credit industry and I can assure you that any changes will end up falling squarely in the lap of you, the consumer. If your credit score isn’t above 720 right now, you can pretty much forget about getting a credit card in today’s market, with the exception of a secured card.

If you bundled up credit card and the credit bureau industry and built a team to redesign the entire system with federal oversight, I would estimate it would take 5 years before they could even come up with a plan. This whole thing is nothing less than window dressing or the proverbial “lipstick on a pig” and we will end up paying for any changes. This post is in no way political as I am not interested in sharing my political views for public consumption.

Can someone tell me who the hell uses a typewriter anymore? You can hear someone typing on a typewriter or stenograph machine. I am sorry I thought we were living in 2009

“Maxed Out” came out in January 2006, over 3 years ago and it just struck me again how prophetic the message was, especially in hindsight. Based upon current delinquency rates reported throughout the credit card industry, we are on the brink of the next wave of financial disaster. Repricings have become the norm impacting virtually every customer in some way. Please take a look at this trailer and remember, this was 3 years ago.

Watch Maxed Out Online via Amazon

A reader of my blog sent me a copy of a disclosure statement for a personal loan solicitation that they received. Frankly, this is the kind of highway robbery that is beyond belief. Metabank’s slogan on their website is “For every life change”. Are you kidding me? If someone were to take this loan, your life would change for the worse, that I can promise you. The upside is that it is a fixed rate, never mind that the rate is 96%. My recommendation to anyone would be run as far away from this kind of offer as you can. No matter how bad your financial situation may be, getting this kind of loan will only add insult to injury. Unbelievable, I am speechless truly.