disscusion week 6 part 1 - 3) Disclosure by the card...

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1) The banks have not been held accountable for solicitations to increase credit lines, even to irresponsible customers, which has been the big problem in this economy. The banks can offer increases in credit limits and can increase them without any solicitation and it is up to the consumer to contact them to lower the limit. In fact, the banks can even increase interest without any warning for no reason and this would be prevented by the new credit card rules enacted by Congress which go into effect in 2010. 2) Consumers are held completely liable for credit card debt they have incurred. The premise used by the courts in these cases is that the consumer had the choice to use or not use the card and was liable for any actual use. The one thing the consumer can do in their defense is prove 1) they did not use the card and 2) the card company has no signed card agreement with them and cannot prove the charges made (which the creditors can do in about 99% of the cases).
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Unformatted text preview: 3) Disclosure by the card companies works like this. You apply for a card and sign an application. When you receive the card, by signing the card and/or using it you agree to the terms that are included in the mailing of every credit card (those pamphlets with the tiny print). The use of the card is the tacit agreement of the consumer to the terms included with the card, whether or not the customer read them. 4) Banks spend considerable money on lobbying Congress for rules favorable to them. However, over the past year with the passage of the new credit card rules going into effect in 2010 which prohibit banks from increasing interest with no reason or notice, prevent cancellation of cards without notice or cause and place many other controls on the bank, it appears that their influence as decreased....
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