http://creditfederal.com/article en-us http://creditfederal.com/article N/A article@creditfederal.com Sat, 21 Nov 2009 04:29:03 CST 20 http://creditfederal.com/article/blogs/377/Democrats-Demolish-Economy Trying to look like crusaders for the common American, democrats are demolishing the economy; business-by-business, increasing unemployment, widening the trade deficit and burying generations to come with big government debt.Why are democrats passing legislation that they know will destroy the economy? To get re-elected.They are hoping that people will look at their reasons for enacting legislation, versus the actual results. For instance, they portray themselves as modern-day Robin Hoods, robbing from the rich --- unfortunately that money isn't going to the poor. Instead, it's going overseas to other countries through a widening trade deficit.But that's OK, right? Afterall, they're sticking it to the big guys - the auto and credit industries.Hold on, let's look at what the real results are:Obama's 'cash for clunkers' program cost tax payers $3 billion. Did it help automakers? Well, yeah... JAPANESE automakers. The latest study shows Obama's program mostly benefited Japan's Big 3 automakers: Toyota, Honda and Nissan. 41% of people bought a Japanese auto, whereas only 39% bought a new American-made car. And there's more bad news. U.S. automakers were stuck with the most trade-ins (85%), whereas Japan had to deal with only 8%. The Japanese had more sales and less trade-ins to deal with. Now America has a surplus of clunkers that we taxpayers must foot the bill for.Recent legislation will deny overdraft protection for millions of Americans. Don't be surprised the next time you overdraft your account if you end up with a bounced payment (and fees) instead of your bank lending you an overdraft. You can thank democrats for this new credit denial, due to their ban on the ability for banks to charge overdraft fees. Without being able to charge fees for their service, your bank may stop offering the service altogether.The trade deficit jumped 18.2% in September to $36.5 billion. That was the largest deficit since January and more than the $31.7 billion imbalance economists had expected. How are democrats to blame for this? By driving business out of the U.S. Due to high taxes and strict government regulations, it doesn't pay to operate a business in the US. Ever wonder why; when you call a company for customer support, you are answered by a foreign person? That's because it costs too much in the US, not because the company is overly greedy. If the company operated in the US, it would have to charge you higher rates to offset the costs. And what would be your response to that cost increase? You'd purchase from a cheaper source, which would be from an overseas company. So to compete against cheaper, overseas companies, U.S. businesses are being driven overseas by democrats who raise their taxes and enact more government regulation.What will democrats destroy next? It appears the answer to that question is the credit industry. With all the laws they've passed already, credit is becoming scarce. Banks are very reluctant to lend money, and credit card companies are stricter on who will get unsecured lines of credit. Why? Because democrats won't let them offset losses by varying rates and fees on the accounts that pose high risks. Bad credit people are already finding it difficult to obtain credit.Ah, what if the credit industry is destroyed... would that be so bad? Let's see... without credit, the housing ecomony would be tons worse than it is now, and only the rich; who have cash on hand, can get new cars. That's only two impacts, get the picture? And don't think that democrats won't drive the credit industry to ruin. Some credit companies are already having to use overseas support services in order to cut costs.Let your legislatures know that big government costs big bucks. For every new law passed, a whole new set of regulations must be published, administered and managed. In short, it costs more tax dollars. And the more it costs businesses to operate in the US, the less profitable it is to do so. Just remember: when businesses go overseas, so do the jobs. With less jobs, there's less tax revenue.And that, fellow Americans, explains why unemployment keeps rising as well as taxes. Credit Federal Fri, 13 Nov 2009 00:00:00 CST http://creditfederal.com/article/blogs/376/What-is-a-credit-card-chargeoff Typically a charge off is when a creditor, bank, or bill collector writes off a balance as "bad debt" because they believe they can't collect the debt. Usually this happens when a person has not made any payments for six months or longer. The lender will still try to collect the debt and then write as a charge off. They can report the charge off to credit bureaus. Charge offs can have negative effects on credit scores, but thankfully credit reports are updated often and positive information could help rebuild the bad information.Chargeoff credit card - Click Here - How to charge off credit card balances yourself, or get professional help from a debt settlement company.When credit card debts have not been manageable for a borrower, debt settlement may be one option to avoid bankruptcy. Many consumers have attempted debt settlement on their own or they hire a professional service to settle their debts. Creditors do not have to agree to a settlement whether from the borrower or a debt settlement company. Sometimes creditors are more willing to work with a company than an individual.Debt settlement could reduce debt amounts by 30 to 70 percent. Even though credit scores can be negatively affected by settling, debt settlement can be a better option than bankruptcy. Only negotiate debt settlement with the original creditor and do not attempt to work with a third-party collection agency. Try contacting the credit card company in the event of difficult times and tell them you can't pay your debts. Let them know you may have to file bankruptcy if you can't reduce your debt amount. They may want to settle and get some money instead of no money when bankruptcy has been filed.Free Debt Settlement Quote - Click HereAccounts have to be seriously past due before a creditor will be willing to talk to you and consider settling. When payments are being made, you probably will not get anywhere with debt settlement. Many credit card companies won't settle unless an account is about 180 days past due and when it is they often charge off your debt and sell it to a debt buyer. It would be better if the creditor tries to settle with you as they would make less selling the unpaid debt to a third party.When the negotiation process begins, send all correspondence via certified mail with a return receipt, and keep copies of everything. Document the dates, times, and the names of any people you talk to on the phone. It can take several months to reach an agreement for a debt settlement. When an acceptable settlement amount is agreed upon, get a copy of the agreement in writing before making any payment. Ask the creditor to put in writing that they will not sell your forgiven debt to anyone. This prevents a debt buyer from trying to collect the remainder of the account balance. Credit Federal Wed, 11 Nov 2009 00:00:00 CST http://creditfederal.com/article/blogs/375/Government-Democrats-Destroy-Economy Actual current news headlines reveal how democratic party policies are destroying the U.S. economy:FDIC shuts four more banks as failures reach 119 this yearFreddie Mac loses $6.3 billionConsumer borrowing drops $14.8 billion due to rising unemployment and tight credit conditionsJobless rate hits 10.2%, the first time it's exceeded 10% since 1983Fannie Mae seeks $15 billion more in government aidWhy are banks failing and why is credit tight? Because democrats have made it too risky for lenders to extend credit. Democrats want banks to accept high risks, but not to take steps to protect against losses. Banks would rather tighten credit than to take the risks forced upon them. For example: To offset losses caused by defaults, banks used to increase the interest rates on those risky accounts. But now; however, democrats have banned that practice, hence banks would rather not lend money at all.You might think "That's good... without credit people cannot get into debt!"There's a much larger impact than just that. With less credit, there are less purchases. With less purchases, there is less manufacturing... and this means less jobs. Instead of growing, businesses cut back. As more businesses cut back; and some close, it creates a domino affect that drives out other businesses. Meanwhile, unemployment escalates. More people get behind on their bills. Democrats create more laws to control interest rates, and even fewer banks will extend credit because they cannot survive default losses. Lesser credit... lesser purchases... lesser manufacturing and yet more business close and unemployment rises yet again. This is not the way to fix the economy. So why are democrats focused on the credit industry? Because it makes them look like heroes in the eyes of voters, and their main objective is to get re-elected even at the expense of the economy.What will fix the problem? Allowing the economy and business to return to a free-market, where businesses can raise and lower interest rates and prices in their efforts to make a profit while also competiting against other companies for customers.Yeah, it's that easy. Tell your legislatures to withdraw credit regulations. Credit Federal Sun, 08 Nov 2009 00:00:00 CST http://creditfederal.com/article/blogs/374/FDIC-Consumer-Fraud-Alert The Federal Deposit Insurance Corporation (FDIC) has received numerous reports of an email fraud that appears to be sent from the FDIC, but is infact a scam.   The subject line of the fraudulent email states:Check your Bank Deposit Insurance CoverageThe email tells recipients that they are receiving the message because they are a holder of a FDIC-insured bank account, and that recently FDIC has officially named their bank as a failed bank and thus, took control of its assets. The email then asks recipients to visit the official FDIC website and perform the steps outlined to check their Deposit Insurance Coverage. The link provided in the email is a fraudulent link. The email further instructs recipients to download and open their personal FDIC Insurance File to check their Deposit Insurance Coverage. The email and associated Web site are fraudulent. Recipients should consider the intent of the email as an attempt to collect personal or confidential information, some of which may be used to gain unauthorized access to online banking services or to conduct identity theft. The FDIC does not issue unsolicited emails to consumers. Financial institutions and consumers should NOT follow the link in the fraudulent email. Read more fraud and scam alerts - click here  Credit Federal Sun, 08 Nov 2009 00:00:00 CST http://creditfederal.com/article/blogs/373/Subprime-Loan-Lawsuits Consumers who were a high risk never should have been approved for subprime loans, but got them due to government control which insisted on approving mortgage loans although default was certain. If that government interference wasn't bad enough, now certain government officials and homeowners are going to court over what they consider to be unfair, predatory practices. Backed into a corner by the government, many banks have settled for millions of dollars. A few targeted defendants are Countrywide Financial, Citigroup, and Wells Fargo. Borrowers want to use the legal system to help them retain their homes and are using the courts as individuals or as class action lawsuits. Foreclosures continue to elevate and homeowners want banks to modify loans they can't pay or to stop foreclosing.Banks are use to lawsuits and have in the past paid millions of dollars in settlements. The problem during the housing boom was many borrowers were questionable and may not have been able to repay. Some common predatory lending schemes involve borrowers who got mortgages with high interest rates, or loans they could not afford. Middle-class borrowers seemed to be a factor during the boom and these may be more able to hire attorneys. Those who are financially unable are using lawyers who work for non-profit legal services agencies or who agree to get payment from the banks if they win the case. Some borrowers have been successful in getting lawyers to defend them against a foreclosure sale or have been able to get the courts to stop or delay the proceeding until the bank considers if loan modification could help. Some homeowners have an adjustable-rate mortgage which lets the borrowers make very low monthly payments with the unpaid interest added to the principal. Homeowners are looking for a second chance but even with this, many borrowers end up defaulting on their payments. State attorneys generals have been filing suit against some mortgage companies alleging predatory lending and deceptive business practices. Banks have had to deal with suits from the NAACP, some cities and individuals claiming discrimination against minority borrowers. The dream of homeownership has turned into a nightmare for many borrowers because of predatory lending practices. Now companies are being held responsible for their role in the foreclosure problems and for creating some of the economic problems. Many homeowners can't afford to hire attorneys to help them and some of the biggest sub prime lenders have gone out of business, declared bankruptcy, or been put into receivership by the Federal Deposit Insurance Corp. Credit Federal Thu, 05 Nov 2009 00:00:00 CST http://creditfederal.com/article/blogs/372/No-Christmas-Credit-Card-for-Bad-Credit-People The credit card delinquency rate is 33 percent higher this year compared to the same time last year. So much for Obama's 'Change' in the economy.There's more bad news... Early stage delinquencies, where payment is at least 30 days overdue, also increased. These rises in delinquencies are a sign that more consumers may not have the means to pay off their debts, which could trigger another rise in charge-offs. And democrats want banks to suffer further losses, possibly resulting in more bank closures and less credit availability... Democrat Scrooges will deny Christmas credit cards for bad credit people, because they don't know how to fix the real problem... the economy. DEMOCRATS - LEND US YOUR EARS!It's not the fault of credit card companies that people aren't paying their debts, it's the economy, stupid! Stop saying the recession is over, when unemployment is at an all time high, and it's not just credit card companies and banks that are suffering losses, but also other industries. Chrysler sales are dismall. Retailers are forecasting a bleak shopping season.WHY?It's the economy, stupid! Not only is unemployment high, but so is the cost of living and wages are low. With all these economic problems and the threat of borrowers not being able to repay, THAT'S WHY creditors had to raise interest rates... to offset losses they actually suffered due to defaults.FIX THE ECONOMY, STUPID!How many times must democrats be told this simple fact, until they realize where the real problem rests? Instead of fixing the economy and increasing jobs and wages, they instead are focusing on causing even more problems for creditors. Hence, that's why creditors are having to raise interest rates on consumers, creating a escalating cycle of madness. Otherwise; if creditors didn't raise rates, they'd suffer tremendous losses which would cause them to default themselves. Apparently democrats won't be satisfied until they've driven every business out of the United States.According to American Banking News, creditors have been hiking interest rates to higher levels to offset losses caused by democrats. To reduce their potential risk, they raise rates to either makeup for losses or to drive-off accounts that present high risks.ECONOMIC CRISIS? HOW DO YOU SPELL THAT?Perhaps democrats understand that the economy is to blame, yet maybe they feel they have to look like they know how to solve the problem so they can get re-elected. And just maybe that's why they're on a crusade to strip free-market rights from creditors (and subsequently strip credit cards from your own hands), instead of fixing the economy. And it's also likely that their actions are because they have no clue how to fix the economy without upsetting their lobbies.WHO'S IGONORING THE ECONOMY?The House voted to accelerate the enactment date of the new regulations for credit card companies. Yeah. Instead of fixing the economy; which is causing people to be unable to pay their debts, the democrats want creditors to suffer losses, drive them out of the country, and cause no Christmas credit cards for bad credit people.The bill will force lenders to comply with the new rules immediately unless they agree to freeze interest rates and fees, thus making themselves suffer losses, put more people out of work, and strip credit from high risk, bad credit people.DOESN'T SOUND RIGHT, DOES IT?Because of democrats pushing this regulation, bank stocks tumbled in the last hour of trading immediately after the House vote, causing a late-day slump in the market. Democrats said the bill was a warning shot to lenders to stop price gouging, but it's the consumers who will ultimately suffer.WHO WILL FIX THIS PROBLEM?House Republicans who opposed the bill identified Congress as the real blame for the recent rate increases because it meddled in the free market and made it tougher on banks to lend money.The bill "limits choice, rations credit, increases costs and it strangles innovation," said Republican Rep Spencer Bachus of Alabama. ...Ah, truth!When Americans are ready to go back to the good-old-days when credit card companies were able to compete against each other for customers; by offering lower interest rates, higher credit limits, perks and rewards, when re-election time comes around they should consider voting Republican. Credit Federal Thu, 05 Nov 2009 00:00:00 CST http://creditfederal.com/article/blogs/371/Subprime-Predatory-Loan-Lawsuits Bad credit consumers who should not have received loan approval during the booming housing market, are now filing subprime predatory loan lawsuits.  Government officials and homeowners are going to court over what they claim to be unfair, predatory practices and are still going through the legal system. Many banks have settled for millions of dollars. A few defendants are Countrywide Financial, Citigroup, and Wells Fargo. Borrowers want to use the legal system to help them retain their homes and are using the courts as individuals or as class action lawsuits. Foreclosures continue to elevate and homeowners want banks to modify loans they can't pay or stop foreclosing.  Banks are use to lawsuits and have in the past paid millions of dollars in settlements. The problem during the housing boom was many borrowers were questionable and may not have been able to repay. Some common predatory lending schemes involve borrowers who got mortgages with high interest rates, or loans they could not afford. Middle-class borrowers seemed to be a factor during the boom and these may be more able to hire attorneys. Those who are financially unable are using lawyers who work for non-profit legal services agencies or who agree to get payment from the banks if they win the case. Some borrowers have been successful in getting lawyers to defend them against a foreclosure sale or have been able to get the courts to stop or delay the proceeding until the bank considers if loan modification could help. Some homeowners have an adjustable-rate mortgage which lets the borrowers make very low monthly payments with the unpaid interest added to the principal. Homeowners are looking for a second chance but even with this, many borrowers end up defaulting on their payments. State attorneys generals have been filing suit against some mortgage companies alleging predatory lending and deceptive business practices. Banks have had to deal with suits from the NAACP, some cities and individuals claiming discrimination against minority borrowers. The dream of homeownership has turned into a nightmare for many borrowers because of predatory lending practices. Now companies are being held responsible for their role in the foreclosure problems and for creating some of the economic problems. Many homeowners can't afford to hire attorneys to help them and some of the biggest sub prime lenders have gone out of business, declared bankruptcy, or been put into receivership by the Federal Deposit Insurance Corp. Credit Federal Wed, 28 Oct 2009 00:00:00 CDT http://creditfederal.com/article/blogs/370/Big-Government-Destroys-Capitalism-Freedom-and-Economy Admit it, Americans... we hate standing in lines. We also hate being told what we can; and cannot, do in our own homes, on our own properties. We also love variety, and being able to make our own choices. ...So why do we keep electing legislatures who want to enact more government control over us?  When you vote for legislatures who want to push new laws that stifle free commerce, free trade, the freedom to compete against other companies, then you are voting for big government that will take over your very lives. And you increase the amount of taxes you'll pay, thus your paycheck gets less and less instead of actually saving you money as you were blindly led to believe.Here's an example: You think the price of bread is too high, so you elect leaders who want to control the bread industry. Once government sets new regulations on the bread industry, it drives up their costs. Oh, but the government has limited what they can charge, so either they collapse and close doors or you're left with only one or two bread makers. Now you're paying less per loaf, BUT you're standing in line to get stale bread with few if any variety choices, and worst of all you're taking home less money because of extra taxes being taken out of your paycheck to cover the expenses of managing and monitoring the remaining bread factories. Bummer. Isn't this reminiscent of the poor Soviets in former communist Russia?Big government costs money. The more laws/regulations, the more bureaucrats that must be hired to administrate those new laws.Big government drives out free trade, free competition. As in our example, bread companies were not able to compete for customers (price wars against each other, newer and better tasting bread, etc).Instead of voting for legislatures that want to enact new laws, vote for those who want to overturn laws so our taxes will be lower and free trade/competition can reign as our founding fathers envisioned. Credit Federal Tue, 27 Oct 2009 00:00:00 CDT http://creditfederal.com/article/blogs/369/Blame-Democrats-for-No-Credit-Cards Democrats, in their attempts to appear voter-friendly, are now trying to pass more legislation that may result in absolutely no credit cards for consumers. Their last legislation resulted in credit card companies having to boost interest rates to offset the restriction to raise rates only on delinquent people. So now democrats will push credit card companies to fold-up and perhaps relocate overseas just like other businesses driven out by democrats.It's a simple matter of economics and risk. And; most likely, democrats understand but are attempting to appear as if they're looking after consumer interests so they can get re-elected... all at the expense of the economy.Here are the details:Senate Banking Committee chairman Chris Dodd (a democrat, and who was recently involved in a loan scandal and hence is now struggling for re-election), has proposed an interest rate freeze on the estimated 700 million credit cards now in circulation.This preposterous legislation is unlikely to go anywhere in the Senate, where Republicans and the few democrats who understand and place the economy first, will surely squash this nonsense.Banks say that capping interest rates would cut their profits and force them to lend less money, which would reduce spending and worsen the economy. And they're right. But democrats would rather get re-elected than to tell the truth and to protect the economy.Once democrats successfully chase the credit industry out of the country; as they have done with many other US businesses, at least then credit companies will be able to engage in a free market. Isn't that bizarre? A business has to flee the United States in order to engage in capitalism.Congress has already passed legislation that puts new rules for credit card lenders into effect in mid February. The law, signed by Obama in May, limits when and how banks hike rates. That stupid law is the reason why banks are having to raise rates now, since they cannot adjust them later on delinquent payers. Thus, now we all suffer, even those of us who pay on time because the banks can't raise the rates only on the late payers.Remember a time when capitalism reined free in America? When companies had the freedom to compete for customers, to offer discounts, rewards and so forth. Ah, those were the good old days. Credit Federal Tue, 27 Oct 2009 00:00:00 CDT http://creditfederal.com/article/blogs/367/Late-Auto-Loan-Payments Experian credit report agency says a preliminary study of 30 day auto loan late payments shows an 8.1% increase over a year earlier. That means $22.9 billion worth of loans are 30 days late. Even more striking is the increase in 60 day delinquency rates. Those loans more often turn into repossessions. They are up 12.7%, putting $7 billion at risk of being unpaid.More news...Equifax credit report agency announced the launch of an industry-first solution that gives credit unions a new way to leverage critical information for consumer and business lending. Now, credit unions can benefit from an interface that connects Equifax's APPRO loan and account origination solution and CUNA Mutual Group's LOANLINER® Document Web Service. With this interface, credit unions can quickly access the most up-to-date, compliant loan documents - enabling them to address key compliance needs, reduce processing times and deepen customer relationships.APPRO and LOANLINER® customer Merrimack Valley Federal Credit Union recently integrated this solution to further automate its lending applications. Credit Federal Mon, 26 Oct 2009 00:00:00 CDT