Obama message to credit card companies

I love this quote about President Obama's meeting today with credi card executives.



“If you are the chairman of Citibank, you don’t want your card guy going in there, because you know, having been there, that the companies will get the s—- beat out of them by the president and Summers,” a Republican credit card lobbyist told POLITICO.


I have some clients that would like to do the same thing to the credit card executives.

Credit Card Fees

Faced with rising delinquencies and charge offs, banks are raising fees on credit card accounts. The increased fees are charged for late payments, over limit borrowing and annual membership. USA Today reports that 2009 income for these fees will be a record $20.5 billion. Banks are raising rates now since Federal regulations take effect next year which will limit banks ability to raise rates on existing accounts.

All of this is no help to individuals struggling to make payments on existing debt and stands in contrast to the the actions of the Federal Reserve which has cut rates to stimulate the economy.

Well, at least I won't worry about my credit card bills when I am dead.

Not so fast. You will not worry about your bills, but your survivors may have a problem. The New York Times reports about an agency that specializes in collecting bills from the dead. In Florida, credit card companies have frequently filed claims against estates which then are settled under the probate process. But what happens when the decedent has no estate or assets. These agencies will then contact the relatives of the decedent. Even though there is no legal obligation for the relatives to pay the bill, they often will pay out of some sense of moral obligation or as way to honor the wishes of their loved ones. In fact, agencies that specialize in collecting from the dead report that they are quite successful.

If you find yourself dealing with the death of a loved one and unpaid bills, please seek independent legal advice.