Credit card debt is like a slippery slope. You may start down that path, thinking you’ll catch up soon. But life happens – injuries, illnesses, lost or downsized jobs. Suddenly, you find yourself slipping farther down the slope.
If you are in this position, bankruptcy can be an effective response. It offers a way to move forward by resolving your debt problems.
One reason you shouldn’t beat yourself up too much about credit card debt is that the tactics of the credit card industry are so unscrupulous. Sometimes, they are downright fraudulent.
It recently came to light, for example, more than 3.5 million consumers who have the Discover card are eligible to receive refunds based on deceptive telemarketing tactics used by Discover Bank. The improper sales tactics included such products on identity theft plans and payment protection plans.
The total amount of the settlement reached between Discover and government regulators is $200 million dollars. The size of individual refunds will vary by consumer.
Discover is by no means the only major card issuer to engage in dubious practices. Capital One Bank has reached a deal with regulators to refund from $150 to $2.5 million to consumers. Capital One will also pay a whopping $60 million in penalties.
Discover faces significant penalties as well, to the tune of $14 million plus interest.
These cases are a reminder to be on your guard when dealing with the credit card industry. It can be tempting to become accustomed to using credit cards. After all, they seem so convenient. Don’t forget, however, that you’re swimming with the sharks.
Source: “Susan Tompor: Discover – touted as the card that pays you back – is paying up after deceptive add-on sales,” Detroit Free Press, 9-25-12
Our firm handles situations similar to those discuss in this post. To learn more about our practice, please visit our San Antonio credit card debt page.