… reached 10 percent and the reluctance of banks to extend or even keep open many existing lines of consumer credit.

In September, borrowing for revolving credit, including credit cards, fell at an annual rate of 13.3 percent, a record 12th consecutive decline. Borrowing for non-revolving loans, including auto loans, fell at an annual rate of 3.7 percent after a slight increase in August. The August gain reflected the surge in car sales as consumers rushed to take advantage of the …

Permalink: /economy/economists-fear-consumer-saving-is-derailing-u-s-recovery/

… proposal, spearheaded by Illinois Democratic Rep. Melissa Bean, isn’t sitting well with consumer advocates who say banks shouldn’t be allowed to skirt state regulations if the restrictions don’t suit them.”

Under the plan created by President Obama and Congressman Barney Frank, lenders would face credit card, mortgage and savings account regulations by both state and federal regulators. If the new proposal is passed, banks would only need to abide by the federal rules set …

Tags: Banking Services Consumer Protections Credit card

According to an article in Bloomberg, consumer bankruptcies are on the rise and show no sign or decreasing. Experts predict that consumer bankruptcies will hit a high of 1.4 million by December 31st as more people face job losses and find it difficult to refinance debt. Last month along 126,000 consumers filed bankruptcy, a 34 percent increase from July 2008. And in the first six months of 2009, 675,351 consumers filed …

Permalink: /chapter_7_bankruptcy/consumer-bankruptcy-on-the-rise/

According to an article in the Star-Telegram, Consumer protection agencies nationwide have experienced a rapid increase in the number of foreclosure “rescue” scams targeting senior citizens.

The article said:

“The report says that home foreclosure scams, which often target the elderly, were the most serious complaints last year. They were so bad, said Pastor Herrera Jr., the director of the Los Angeles County Department of Consumer …

Permalink: /foreclosures/consumer-protection-agencies-report-rise-in-foreclosure-scams-targeting-elderly/

… plastic culprits you had to watch out for, prepaid debit cards are crashing on the watch list of consumer advocacy groups. Many Americans who have lost access to bank accounts and credit cards due to bad credit, wage garnishments or bounced checks are the biggest target of companies selling prepaid debit cards. Basically a prepaid debit card is a reloadable electronic account that acts like a debit card or credit card. The prepaid debit cards are not affiliated with banks and not subject …

Permalink: /fort_worth_lawyer/consumer-beware-of-prepaid-debit-cards/

… April weakness followed a 1.3 percent drop in March that was worse than first estimated.

Since consumer spending comprises nearly 70 percent of all economic activity, this drop in sales has many economists worried that the economic turnaround may be a long time coming.  In a sign that their fears may be justified the Labor Department also announced that the unemployment rate rose to 8.9 percent as the country was hit with another 539,000 job losses in April.  In total, over 13.7 million …

Permalink: /job_loss_unemployment/job-losses-stunt-consumer-spending/

According to an article in the Dallas Morning News, the Commerce Department reported Monday that consumer spending, which accounts for 70 percent of the nation’s economic activity, dropped by 1 percent in December and savings increased 1.7 percent for 2008. But that’s from a low of 0.4 percent in 2005 which was only slightly better than the savings rates during the Great Depression another era when foreclosures and bankruptcies were choking the nation.

The article made a very …

Permalink: /chapter_7_bankruptcy/consumer-spending-drops-savings-rates-rise/

The Wall Street Reform and Consumer Protection Act (H.B.  4173) is under consideration by Congress.  One of the most important aspects of this proposed legislation is the changes to bankruptcy law that will allow bankruptcy judges to modify toxic mortgages.  A similar proposal was defeated in the Senate earlier this year; but we’re hoping that this time legislators will give American homeowners a fighting chance to …

Tags: Bankruptcy foreclosure Law Mortgage modification The Wall Street Reform and Consumer Protection Act United States

… unemployment rate, credit card company price gouging has sent them over the edge.  According to a Consumer Reports survey, nearly 32 percent of credit card consumers surveyed said that they had closed their credit card account in the last 18 months. Fifty percent of them closed their credit card accounts because they were upset when credit-card issuers cut limits, hiked interest rates, jacked up fees or imposed new charges.  Credit card usage has dropped so low that debit card transactions, …

Tags: Consumer Reports Credit card Debt Interest rate

… Even if you have guilty feelings, you do not have to be treated like a criminal.  You are still a consumer with consumer rights.  Know them and understand what those rights are.

Debt collectors are prohibited by state and federal statutes from using tactics that harass, annoy or alarm you or your family.  Some examples include:

Repeatedly calling you on the phone.

Threatening physical violence towards you or your family.

Using profane language or cussing at your children when …

Tags: Consumer protection Debt Collectors Federal Trade Commission Know Your Rights

The Consumer Law & Policy blog has a very revealing article about a judge in Indiana that took it upon herself to give indigent debtors a choice–”pay up” or “go to jail.”

The blog writer provided the transcript of an exchange between the debtor and the judge:

The Court: “So we’re here today for you to explain what you’re going to do to pay this off.”

Mr. Button: “I …

As a credit card consumer there are certain rights and protections that you enjoy. Let’s take a look:

Did you know that if you lose your credit card or if it’s stolen you are only liable for $50 maximum of unauthorized charges regardless of when you reported the loss or theft? This rule is part of the Fair Credit Billing Act which protects credit card consumers from suffering financially because of …