- Move all bank accounts such as savings, checking, CD's, etc. OUT OF BIG BANKS and into community banks and credit unions. Take your business completely away from the "too-big-too-fail" globalist, corporate elite that are ROBBING YOU and destroying this nation. If you are worried about smaller bank failures, diversify into several community banks and/or credit unions. They are members of YOUR community who are contributing to it, they will get to know you, and you'll be building relationships and doing business with REAL PEOPLE.
- Cut up those credit cards! If you must use them, do so only for convenience like shopping online or making reservations. PAY OFF THE FULL BALANCE every month!
- Downsize your life and live more simply. Slow down being a "consumer". For too long we Americans have bought into this notion that houses, cars, plasma TVs, cruises and granite countertops are a measure of how successful and happy we are. Live within modest means, don't buy anything you don't really need. Spend more casual time with your kids, family & friends. Develop spiritual joys instead of material ones.
- Refuse to pay if there's no fair play! If you are a debtor and are a victim of "extortion" like interest rate jack-ups, excessive charges, etc. DON'T PUT UP WITH IT FOR ONE MINUTE. Call them and say,
"I've joined Ann Minch's Debtor Revolt, and if you don't reduce my rate/charges I WILL NOT PAY YOU ONE MORE CENT UNDER ANY CIRCUMSTANCES!"
Monday
The FOUR-POINT PLAN
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ANN'S BLOG
Updated weekly (unless I have writer's block!)
44 comments:
Stop paying Big Insurance, Big Credit Card, Predatory Mortgage, Bic Car Maker and all other Corporate Thieves NOW!
I have taken my money from Bank of America and put it in my local credit union.....the revolt has started!
I opened up my BofA Gold Option Line of Credit back in Feb 08 to consolidate older lines of credit to a lower fixed rate to pay them off sooner. I was guaranteed that the line of credit would remain at a fixed interest rate for a set term of months and that was it. That was the only reason I opened the account.
In Nov 08, I called BofA and tried to negotiate a lower interest rate on the LOC, but was turned down. A few days later I receive a letter in the mail saying that "due to a periodic review of my account, it has been closed." My credit score is in the 740s, and I had never missed a payment on any of my debts! I can only assume it was because I called to negotiate for a better rate. I promptly closed my remaining accounts and moved my checking and savings over to a credit union.
Now it is Oct 09, and I have received a letter for BofA saying that my fixed interest rate will now be variable, tied to the prime rate. That is not the agreement I signed on for. I called to opt out of this outrageous change of terms, but was told that it was being done on ALL GoldOption lines of credit and nothing could be done about it. This seems to me to be a case of bait and switch. If I recall correctly, the new credit legislation going into effect soon affects fixed rate interest, but exempts variable rate interest. It appears BofA is changing their terms to circumvent legislation, and something needs to be done about it! The letter I received said the new variable rate takes effect on the first day following the statement closing date in December 2009!
Also see this specific hate site for Bank of America:
http://bankofamericasucks.com/
Lots of good advice, including how to complain to the OCC, the government agency that oversees large national banks. You can file a complaint here:
http://www.occ.treas.gov/customer.htm
The first three points make sense, but point 4 of the Action Plan is just plain stupid and WILL get a lot of well meaning people in trouble if they follow this lame advice. How about changing point 4 to "Actually read the credit card agreement and move your account if you don't like the terms." This "I'm not going to pay is just another cop - out. Take responsibility for your decisions - that is a movement everyone should sign on to.
Robert Thomas...I had almost the EXACT same thing happen to me. When I called about an advance, they didn't cancel my account, but they lowered my limit to just $500 more than I had in the account, which now made it look like the account was maxed out again, after I had paid off over $4000. I also got the same variable rate letter as you did a few weeks ago. I, like you, have a credit score in the mid 700s. The only thing that stopped me from calling them then was the fact that the prime rate has only gone down in the last year. I still hate the fact that they can sneak all of this crap through before the Feb deadline, and us with good credit have to suffer!!
I have to disagree with you...Step # 4 is a call to action, to thwart the credit card companies from usary. I have followed steps # 1-3 for all my other accounts, but...when Amex triples my interest rates, giving me NO option to freeze my accounts at the old rates, giving me no voice in whether my interest rates are going to be tripled or not...then I will fight them.
Case in point...my wife and I have had a very good credit rating with all three reporting companies for many years. Until one month ago, our credit scores were in the very high 790 range. We have had one particular Amex card for over 24 years, and it states right on the card...member since 1985. But when Amex raised our interest rates on our other two cards to 15.24 %...I was mad, tried to fight it, made dozens of phone calls, sent dozens of e-mails, and finally resigned myself that I had NO rights in this matter, and they were going to win. Then...they raised my interest rates on our 24 year old account, the Amex Optima account, that was at 5.24 %. They almost tripled that interest rate, raising it to 15.24 %. This time, I am in the fight to the end. I have made a dozen more phone calls, a dozen more e-mails, and sent off a certified receipt letter, which I know for a fact that they received. I gave them an option...I gave them a choice...I told them that they would either change the interest rates on all 3 of our accounts back down to the 5.24 % that was previously on the Amex Optima account, freeze our balances on all accounts, and we would in fact pay off all of our accounts...at the agreed upon 5.24 % until such time as they were paid off, and then we would gladly say goodbye to Amex, forever...OR...if they did not agree to our offer...if they continued to charge us the new higher rate of 15.24 % on all 3 accounts, then would will simply walk away from our total debt to Amex of...(are you ready for this?)...$ 83,000.00. That is the total we owe on all 3 accounts.
Those of you that want to admonish us for having such high credit card debt, go ahead, but remember that for the last 24 plus years we have had nearly perfect credit, and a very high credit score. We owe alot, but we have no problem at all paying for our debt. BTW, all other credit card companies have been paid in full during this fight with Amex, and our only credit card debt to date is with Amex. So, whther we owe $ 5.00 or $ 500,000.00 to credit card companies, is not the issue. The issue is...can we pay our debt, and not go backwards. Are we responsible credit people, or irresponsible? A month ago, we were as close to perfect creditors as possible...now we are in it for the lomg fight, and my wife and I are in the position to carry out this fight. This debt to Amex is an unsecured debt. They can not come and take anything away from us. They can attempt to collect, but we also know our rights. They can eventually take us to court, and attempt to get a judgement against us, and for that...we are ready. We have documented every action, every move, and every misstep made by Amex.
Call us all the names you want to because we choose to fight Amex, and in that fight, we may indeed walk away from $ 83,000.00 in debt. We know exactly what this will do to our credit ratings, and we are prepared. We are in a better financial state that most people...no kids at home, own our $ 500,000.00 home, have no loans on any of our 5 cars or 4 motorcycles, etc. So...we can afford to fight this fight. We can also afford to make the payments to Amex...but I refuse to be a victim to Amex, and their raising our rates to almost triple of what they were. When they are asking me to pay triple the monthly finance charges that I was...then it causes me to rethink whether this is right or not.
We are in this for the long fight.
MidLifeRider
Like a lot of you, my wife and I have some horrific stories to tell about banks and credit cards. But let me let me repeat a short but true story told to me within the past few weeks by someone very close to the story. An army captain was seriously wounded while serving in Iraq. A bachelor who owned a house, he was transferred early on this year to the Bay Pines VA hospital near St. Petersburg, Florida for further treatment of his wounds. This young man, who risked his life to defend the freedom of our country, is a quadriplegic. While recuperating at the VA hospital he was approached by a stranger who just walked into his room and then asked him for confirmation of his name. Once the young captain confirmed who he was, a piece of paper was stuck in his armpit and then the document server left the room. He was served with legal notice of a bank foreclosure on his home.
When contacted by friends of this young captain, the bank indicated that they were just following the terms and conditions of the mortgage note and that he had fallen behind on his payments and the fact that he had been in intensive care due to combat wounds for a prolonged period or the fact that he was a quadriplegic did not matter and there was nothing that they could do. They were foreclosing on his home. Robert Burns, the famous Scotch bard of the late 18th century, once said that “man’s inhumanity towards man makes countless thousands mourn”. For this young courageous and brave man it was much more than that. The angels in heaven cried for him, first for the pain of his combat wounds that have paralyzed him for life and secondly for the cowardly, hideous, and revolting way he was treated by these unscrupulous and immoral bank executives that caused him such tremendous mental anxiety and emotional abuse. This is a true story. It is my understanding that some of his fellow army friends are working with a retired high ranking army general who is well connected to put pressure on the bank CEO to withdraw the foreclosure papers. I will let everyone know how this turns out.
For this young soldier, for the thousands, perhaps millions in similar situations, let’s all of us unite immediately to stop these outrageous and shameful actions by these despicable executives.
Please go see Michael Moore's new documentary, "Capitalism: A Love Story".......if you aren't pissed off at this plutocracy we all live in now, you will be.
If you're worried about the cost, go on a Tuesday.....most theaters are half-priced.
You go, Anne Minch! I'm ready, and my pitchfork's sharpened up, too!!
I've had enough, sheeple.......let's kick them where it hurts..
capnhook
midliferider your position makes no rational sense. it seems as if you are using unsecured debt assuming you have the same luxuries as secured debt (fixed low rates). if your finances are what you claim, why not just get heloc at a low fixed and pay off the amex and move you business elsewhere. destroying your credit, and having potential unforeseen personal consequences (job search, future loans etc) donsn't affect amex proportionately to the negative impact on your family.
I have a Midwest Airlines account, actually owned by Barklay Banks - which is a UK company, I believe. I have been paying more than the minimum every month and have about 4,000 on it. I have fluctuated between 0 - 5,000 for the past six years, because I use it for traveling. I eventually pay it off.
They just jacked up my rate to 22.24%!!! I have called them a couple of times to give them the option of lowering my rate or losing me as a customer. However, they kept stating that this is happening to everyone and they did not have the ability to negotiate with me.
So, after I make some arrangements to get my cell phone charged to a different account, I will close my account. I have another account with a lower rate that I will use - which also gets travel points.
The reason I used that cc was because I used to like to fly Midwest Airlines and wanted to rack up the miles. But I told them I would even stop flying with them from now on as well.
I am writing a letter to Midwest Airlines to tell them about it.
I was thinking of starting the same kind of revolt but will support you instead. I will list your revolt on my national page at:
Community Bulletin Board
Truly enough is enough. My Citi bank went to 23.99%, Bank of America and Chase not much better. I am now refinancing a rental to pay the cards off and will not use a card again..PERIOD..EVER. I think everyone should get Wall Street out of their pockets, out of their main streets and out of your communities. Switch to a local Credit Union. Next week I will close my WaMu/Chase account and switch to my CU where I have a house loan. The banks and credit card companies have abused our trust and abused us as consumers. So quit paying them for the privilege ... dump them ... dump them ... dump them.
Live within your means. Pay your bills. Stop bitching.
We are all having our credit cards raised.A few of mine:
Chase-from 14.99 to 29.99
B of A from 10.99 to 23.99
Juniper bank from 8.9 to 14.99
Citibank from 6.9 to 29.99 !!!!
Citibank Buisness from 8.9 to 14.9
Discover from 8.9 to 17.9
Most of my cards have doubled in interest rate in the last 6 months.
I used to see a light at the end of the tunnel-I had a plan to pay it all off- now all I see is the bankruptcy court waiting for me.
I have decided to just make minimum payments only, until I decide what to do.
MY Chase bank-minimum payment was $30, interest was $32.
How is anyone supposed to deal with this?
FYI- I am always on time, kept my debt below 30% on each card, and always paid double or triple the minimum.Paid most of them off several times over, and then use them again.
Now that they have actually closed my 2 Chase accts, and lowered my limits on most of my cards to just above what I owe, my credit is already taken a beating. From 715 FICO to 635 in a matter of 6 months.
And I have not used my cards for about 6 months.Except for Chevron, which I pay off every month.
So the only solution I see, is bankruptcy-they are forcing me into it.
Debt consolidation companies are a rip-=off-you can destroy your credit WITHOUT their help.
Thanks for letting me VENT.
And yes, I did USE my cards, and maybe live above my means, but never to the point that I couldn't handle it or pay it off-
NOW??????????
We have (had) been a BofA customer since the mid 90's. Hell my wife worked there for a short time. We had a credit card with a great rate - 4.9%
We typically use this card for incidentals and usually paid it off monthly. Smart.
Last year we used it to purchase some inventory for our company and charged $15K on it. No problem. The rate was just as good as a regular loan and we had planned on paying it off as soon as possible.
All onthly payments made on time all the time and then last month we get this letter in the mail from BofA stating...
paraphrasing here ...Due to a review of your account the interest rate for your BofA Visa card has been changed to 27%... they also stated that we could 'refuse' the change, but if we did the account would be closed and we would have to make monthly payments until the entire amount was payed off.
WTF! My reaction was swift and decisive. A check was written for the balance. A letter was drafted and sent to them requesting the account to be closed and the reason to be stated was;
'Closed at the request of the consumer'
The letter also stated that we would no longer be accepting Bank of America checks or credit cards at our business. This could well amount to tens of thousands of dollars.
Thanks BofA. Way to go screw your customers.
Thanks Ann. Way to go!
We at the W.C. Varones Blog salute you.
We are in a war. The people vs. the banksters who run our economy and government.
In a war, you must always use your best weapon or risk defeat.
Our best weapon is to REPUDIATE ALL CREDIT CARD DEBT.
If we don't pay, we will bring them to their knees and they will negotiate, along with their lackeys in Congress, Treasury, and the Fed Reserve.
Join today's version of the Boston Tea Party and stop paying your credit card debt.
Here's a familiar one. I had a BOFA card with a 22000 line on it. I was using about 11000. They lowered my limit to 11500, shooting my utilization up to over 95% from 50%. I called them on it, they wouldn't negotiate. My rate on the contract was 7.9% fixed. So right after they lowered the line, they raised the rate to 29%. Why? Because the credit bureaus now reported my utilization was too high. So BOFA caused it (they denied it, by the way), and then is cashing in on it. Oh, and I paid it down by $1000 to 10K, and they lowered my line to 10100. I asked why. They said I wasn't paying them quickly enough. Wait a second. Banks LOVE it when you have a balance. They make interest on that loaned money. Here they were making 29% on 10K and that wasn't good enough.
Fine. Guess what? I have a mortgage with Countrywide, now owned by BOFA. I decided to just go bankrupt. So the credit card is gone. All my cards from other banks with similar tactics are gone. Screw 'em. Screw 'em all.
I've gone BK before, and I worked my credit back up to mid 700s. I'm not afraid of it. I can do it again. My credit already got whacked, and the banks aren't lending, so it's no sweat off my nuts. I'll work it back up again. No problem. Pulled my accounts from Union Bank, Citibank, and BOFA. Put them in my credit union. My corporate accounts? Same thing.
Moral of the story: Don't fuck people that fuck back. BOFA can now go choke on 325K of debit I owe them. Citibank? about 16K. My wife has about 60K out. She's joining me in the fight.
One day, I'll make tons of money and the big banks will come and romance me with dinners and shit like that. I'll eat well at their expense, then tell them they can shove it high and to the left, but thanks for the dinner and drinks.
Remember the moral of the story. It's time for the people to speak. It has started. Let's join Ann and fight the good fight. We have nothing to lose on this one.
Oh. Have to add that the mortgage with Countrywide is on a rental property, not my primary home. Just to clarify...
having a tough time paying debts, have been living on pension and SS since 93. $21,000 year doesnt go far(mortgage and maintenance on condo is $1200 month) considering i have been living on this amount for 16 yrs, a debt of $16000 isnt that much..have considered bankruptcy (SIL is an atty)but have an accident case pending which may result in 10 to 15 thousand dollars coming to me, so this option is out of the question. only thing left is to keep paying till i just cant anymore..
Ge money Bank are crooks also. They own Lowes credit card. Finally was financially stable enough to start paying off some debt and working on my credit scores, paid them off 2 wks later they closed my acct. credit limit was 2000.00 only owed 1000.00. called them they said it was due to my credit report. Well in 2001 I had filed bankruptcy but this card as well as all my others was granted after that. My credit report on all my debt states paid as agreed, except some medical collections that I'm disputing with the insurance companies. Requested credit line increase 2 months earlier on this acct. pulled my credit report then exactly the same they didnt close it then. Hum, wonder why. When I called GE MONEY BANK they stated it didnt matter if I was a good paying customer they went by my credit report. well for any of u that doesnt know when u close an acct and lose that credit ur credit score goes down, mine 30 points. Thanks GE MONEY BANK for helping me out when all I was trying to do was be financially responsible.
Write to your Senators. That's what they're there for. They have the power to change the laws and to prevent this extortion.
I want to buy the tee shirt to help the movement, but I want to use PayPal to do it, so I DON'T use a credit card.
yes paypal is the way to go! i cut off all the credit card and use only paypal debit card
debtor revolt soldier
I have discovered a way to completely eliminate credit card debt legally because of the way the credit line is established. I have been working with a CPA that will actually assume your debt and all legal ramifications and the cost is between 15-25% of the amount. The fee for the assumption can be paid out of the credits remaining on the line so basically can be structured to cost nothing out of pocket. Three things he agrees to do: Bring the account to "0", get the bank to agree to give a satisfactory credit rating and not report the "credits" as income on a 1099 report to the IRS. I have personally reviewed file after file with a 0 balance and satisfactory credit. For active military people he will do this for no cost. There is also a way to "0" out mortgages (different process) partially due to the Supreme Court ruling in Kansas against MERS that they can't prove their security interest in the real estate. The entire Federal Reserve System is nothing but smoke, mirrors and fraud. There is no substance behind money except the credit of the citizens of this country-no gold, no silver-all empty. The deeper you go, the more it looks like flying pink elephants at Disneyland-it makes no sense.
P.S. By the way, this CPA has been doing this process now for 7 years with a 100% track record. I have also reviewed his contract and he states that he will assume the debt and all legal obligations and attorney's fees. Amazing.
Thank you so much for what you have started Ann. Not only BofA, but all these big banks and credit card companies are monsters. I have simply given up even trying to pay my credit card bills. They can all stick it. Granted, we have some responsibility, but, during the "good times" they were relentless shoving instant credit down our throats. Too many of us got trapped. So, like you, I have nothing. I am self-employed. I am doing all I can just to pay my house payment and take care of a wife with Multiple Sclerosis and long cancer. So all you banks and credit card companies, shove it where the sun don't shine. You get nothing more from me. Giving you the one finger salute.
I guess I joined without even knowing it.
Capital One doubled my interest rate on an account that had always been paid spotlessly. That isn't even what I had a problem with. The problem was that the opt out notice never arrived. My first notice was the rate doubled... by then "too late" to do anything. I wrote and wrote and got an insulting and non-responsive brick wall.
About a week ago I looked at the bill... and I just couldn't write the check. I've never willfully not paid a CC bill before. But it's the only leverage I have. So I guess I've joined.
Destroying my credit rating... even pushing me into BK... honestly they'd be doing me a favor. I'll live debt free and they won't get their money, let alone any future interest.
I can find only two things one needs a CC for: renting a car and guaranteeing a hotel reservation. In both of these cases you can actually pay with a debit card! One secured CC with a small line is truly all one needs.
The headlines say that total amounts owed by Americans on CCs are going down, significantly, every month. I guess I'm not the only one pushed too far!
For years I was their obedient little debt slave. This year the slaves are pushed too far, finally come to their senses, and REVOLT!
The People Power are already doing the following:
For the faint-hearted, grow own food.
For the bold, print money [need not be exact duplicate] to crash current corrupt capitalism.
For the hardcore, assassinate evil banksters, politicians and cohorts.
Growing own food, yes
printing money - no
killing people - no
People Power - you go too far
Ann, I can't see another way to contact you...
Today Bank of America cut my credit limit by $10,000 by dupping me into thinking they were just getting my income information to see if they could reinstate a credit line they'd taken from me months ago. Instead of restoring my former higher credit limit on one credit card, they denied that, and then DECREASED my credit line on a second credit card. It all started because I called to activate a new card that expires in 2013 (to get rid of the one that expires in January). I called to activate a card, and end up having them reduce my credit limit on the spot because I voluntarily answered their request for information to reinstate a higher credit line on another credit card!! I am a PERFECT customer of BofA for 32 years. Pay off in full each month, never late, never over my limit, have a credit score of over 750. I carry a zero balance on my cards. Yet, they decided in 5 minutes to cut my credit. Should I talk to this Jeff Crawford guy! I'm soooo mad!
I'm changing banks.
I do not bank with Bank of America, but I do with Wells Fargo. And they are just as shark-like. I am appalled at what they have done to me and my family, and that it is apparently legal (by their claims).
Two months ago, after I had to stop working due to complications in my pregnancy, it came down to either we buy food or pay our minimum credit card payments. We chose to buy food for our growing family. We decided to file for bankruptcy.
The day my credit card payment was due (a business credit card with Wells Fargo), they called me and asked why it had not been paid. The called the day it was due!! It wasn't even late then. I told them we could not afford to pay, and that we are really sorry, but we are filing bankruptcy. I asked her to note it in the account.
Every day for the last 2 months they have called, and each time, I answer the phone, and again tell them to note it in the account our intention to file and that it takes time. They, I guess, saw that as an opportunity to get some money while they still could.
A week before Christmas, I was feeling decent about our finances-for we had $256 in the bank to get through until January 1. This was our food and gas money left, and I was just about to head out the door to go grocery shopping, when I decided for some reason to check our online checking account (through Wells Fargo). I log in, and to my surprise find that the credit card side of Wells Fargo hacked into our CHECKING account and decided to pay themselves, leaving us with $4 to get through the 2 weeks. I was furious. Most of the time, payments or transfers show they are pending, and you still have some time, but this was taken out automatically. It went through the moment they took the money out. I was even more furious that the minimum payment that was due on the credit card was only $51, but because it had not been paid in 2 months, it went up to $252 (for late fees). I find that outrageous. But the bread of butter of these banks is their late fees.
I called, crying tears of anger and worry, and asked how they could possibly STEAL our money...it was OUR money. Who were they to decide that we shouldn't eat for 2 weeks? I had told them over and over again we were in the process of filing bankruptcy, and I guess they found that as in "in"-that we hadn't completed the filing yet, and they should take some money while they still can.
2 weeks later, I got a notice in the mail from them informing me that they were going to take the money out of our account (funny that the letter was dated AFTER they had already done so). So they didn't even give me a warning.
My thought is that there has got to be some law or rule that exonerates us from them being able to do that-since we clearly stated our financial situation. I guess they found a loophole. I was just devastated. I of course called and called and pleaded with them to put our money back in our account, and they would not. I went down to the local branch, they basically said "tough luck".
I wish for nothing more than these banks to be exposed for what they truly are. And furthermore, I hope and pray that all of their employees see what they are doing to the American people and take a stand against their own company!
Thank you for starting this website.
Ann,
Barclay's Bank is doing the same thing to me, except that I need for my credit to be good. They refuse to lower the interest rate below 28.99% interest, but I'm going to pay it for six months without incident and pay off the account with a loan from the local credit union. Are there any other radical alternatives for me rather than refusing to pay and ruining my credit? Do you recommend that I make a video about Barclays? They actually gave me a late payment because I paid my bill early(first day of the month)--they say it wasn't in the billing cycle. It's outrageous, and I've learned my lesson about credit and not being aware of what I am paying creditors! It's highway robbery! Anyway, how can I get the word out about Barclays and their BoA tactics?
I would love to join your 4 step plan since I've been hating B of A for about 15 months. Unfortuntely I inherited them: checking & savings via buyouts, & mortgage & 2nd mortgage via Countrywide. Of course I now owe much more on my condo than it is worth. I'm barely surviving, but I don't know how to get away from them. They're like a bad nightmare that I can't wake up from. I also have other credit card debt but at a more manageable rate. I'm stuck. Does anyone have any ideas?
Hi Ann, just wanted to let you know I posted your Four Step Plan on my blog, hoping to do my part to get the word out.
Ann: thanks for the info about Debt Hope. I bought the e-book; it is the BEST $9 i have EVER spent. now I know better what my rights are, and I will begin using them this month!!!
People: Listen ! you have got to learn your rights. You have rights ! Listen: the cc companies have insurance on our accounts ! so if you don't pay, for 6 months, they close the account & collect the insurance on it. THEY GOT THEIR MONEY. It came from their ins co instead of from your wallet, but they got paid !
So, then they sell YOUR account info to some collections agent for pennies...& they try to collect from you. They are trying to collect on a debt that HAS BEEN PAID. This is wrong. Don't let them do this !
And to those high-&-mighty snoots who say "try living within your means for a change"--- honey, I got news for you: we HAD to use a credit card to 1)go see my dad before he died; 2)go to his funeral; 3) pay medical expenses for our family -- hospitalisations, surgeries, not options !!! --- gas to get to work, food -- not extras! we make our own Christmas gits, we cook at home from scratch, we wear used clothes from yard sales (thrift stores are too expensive) -- we have made payments faithfully, usually over the minimum amounts; but we have actually paid what we borrowed, plus intrest, several tiomes over by now, AND THE CC Companies STILL SAY WE OWE. Hogwash!
Learn AND exercise your rights! it is tricky, like navigating a minefield, but we DO have rights & we MUST use them. This is our version of a bailout!
Honestly ... What CAN these corrupt bank and credit card companies do to you if you are: 1) Retired (and are no longer seeking active employment), 2) If you own your own home outright (and owe no monthly mortgage payments), 3) Own your own NEW car outright (and have no car payments), and 4) Don't answer your phone and/or respond to any messages left by debt collectors ... NOR allow them to intimidate you, or "guilt" you? And so WHAT if they sue?? Under all the aforementioned circumstances -- and it is UNsecured debt that we're talking about here -- Then what can these corrupt banks and credit card companies actually DO to you??
Anonymous: all they can really do is smear your name. They can say nasty things about you on your credit reports, they can pull your credit reports hard & often to make them look bad... but that's all. So if you don't give a d**n about your credit score (which you shouldn't), it doesn't matter.
Oh, BTW, to 'Common Sense' -- the a-hole who blogged on here to those of us who are currently in a righteous revolt in this country -- Go "F" yourself! You can kiss our PATOOTIES!! All YOU probably are is some LAZY diva stay-at-home wife of a wealthy banker or a corrupt corporate executive ... who is sitting in judgement of us common folk. A POX ON YOUR HOUSE is OUR wish for YOU and yours!! PffffffFFT!!!
Thanks, Wonder Gal ... But what about the 1099 form that can be filed with the IRS, converting the unpaid balance(s) that one owes on the CCs into taxable income? Can't the credit card companies do that? Or not? Does anyone out there reading this question answer in a knowledgable way? What can the CCs actually do to you regarding unpaid unsecured debt? I don't give a fig about them "smearing" my name, etc.. THAT would pretty much amount to their pot calling my kettle black. And I can easily make myself inaccessible by phone ... so NO problem THERE. Threatening letters? Just stash that TRASH in 'File 13'! I just need to be made aware about any VIABLE financial consequences to myself. So -- What CAN they actually DO?? Especially since debtors prisons no longer exist.
Am going towards independence. Growing our own food (at least some), paying off all credit owed, and looking into solar. Buying some gold/silver when possible.
TPTB are controlling their minions, the banksters and politicians. Just don't play their game anymore.
We the people have the power and need to take it back.
Anonymous: those are good, valid questions, & the answers are in the e-book "Debt Hope". It is really the best $9 I have ever spent. I don't get any royalties from it or anything, i just really benefitted from it & I think it would benefit you too.
In some circumstances, companies can sue you. But the laws vary so widely from state to state, you have to research to see what applies in your situation. "Debt Hope" tells you how to find out what applies to you, & what to do about that.
Another approach, promoted by John Gliha, is to convert your household into a LLC corporation; it serves as a holding corporation only, but basically puts a legal fence around your assets so they can't be touched.
until you do get a copy of "Debt Hope", the brief answer to your question abut the 1099 form is: if you put it in the settlement that the CC cannot file a form 1099, they can't. That would be one of the terms under which they agree to settle with you for a smaller amount than what they were going for.
I just now found you Ann, but i've been with you all along.
6 months ago BofA reduced my credit limits from 9K and 15K respectively to 1K each on two cards. They were high interest so i transfered the balances off and used the cards for convenience only and payed off each month.
Last week both cards were closed by BofA after i tried using their credit card check (which was not expired) to get 2.99% interest. I saw they charged me a $35 return fee so i called them. They said they closed my account and cited "excessive debt" I said what? They said they sent a letter to me 2 days prior. My FICO score is 687 which is GOOD, and now its going to suffer because of BofA. Cust support had a very condesending and accusatory tone. Im done with BofA.
I have been using your 4 step plan without knowing.
1) a year and a half ago I transferred all high interst balances to low interest cards and payed others off and negotiated with the rest to get low "rate for life" I use a local credit union for all my banking.
2) i budget and pay off monthly. payed off my bed, payed off my storm door, payed off my tires. i now have 5 cards that are at 0. 8 cards with balances. Im snowballing with the highest interst cards to be payed off first.
3)my life is seriously downsized. driving a 10 year old car, no more restaurants, movies once a month if that. using netflix, no satellite tv. I use an online budget program to total everything and track electronically every day. BUDGET BUDGET BUDGET
4) my oldest card, citibank platinum has been with me since college (15 years) its been there for 2 european trips, many fun times, so many memories... last year i opted out of an interest rate increase and closed it. If they want me to pay off my debt, they have to keep my interest low. raise interest and im gone.
this war is not without sacrifice. closing accounts makes your credit score suffer, and all your accounts will react to this. not paying on time creates a SERIOUS mark on your credit report.
I suggest a refinement in your battle plans:
Ann don't give them any more fuel. keep those accounts open but dont pay them any interest or fees. 0 balance accounts are useless to them but they keep your credit score boosted, and that is our artillery. Dont miss payments. opt out instead.
fighting this war along side all of you!! We will win!
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