The New Bankruptcy Code went into effect October 17, 2005. The new law was the product of intense lobbying in Congress by credit card companie and the banking industry. As many against the change in the law argued, the new law would hurt only the middle class who often struggle to make ends meet, begin using credit cards for needed purchases, then, before they realize it, cannot continue to make the payments. (I am one who personally knows the negative affects of misusing credit). Many times, after the finance charges, late fees, fees for going above the approved credit limit, or just fees to make money, the minimum payment becomes a nightmare, and it is next to impossible to get out of the debt. For many, bankruptcy is the only way out of the situation to make a fresh start. But now the new law will make that next to impossible.
And now I have noticed a commercial recently from Citibank. It is promoting Citi Simplicity. With Citi Simplicity, consumers are informed that they will not have to pay any late fees as long as they "use your card once each billing period for a purchase of cash advance..." In other words, if you don't want to pay a late fee, just charge more. So, the credit card company is advocating misuse of the credit card. Keep on charging to avoid late fees. But what about finance charges? NOPE! They of course keep piling up! So Citibank is encouraging consumers to keep on charging, even if they cannot afford to pay it! Keep on charging to avoid the late fees, but keep on paying the Citibank more in finance charges.
That is why I hate credit card companies! That is why I never once felt bad for credit card companies when someone declared bankruptcy and said, "F*** you, credit card company!" Credit Card companies are nothing more than legalized loan sharks. When will they beg Congress to allow their henchmen to break the kneecaps of those who can't pay?