One result of the federal government bailouts is that credit card issuers are offering their customers more help with paying off their debts. The reason this is occurring is that many of the government programs are in some ways indirectly encouraging banks and lenders to provide this assistance. There are numerous examples and instances of credit card companies, such as Bank of America, Capital One, Visa, and others, settling delinquent credit card accounts for much less than the amount owed by the consumer. They are also offering them other breaks, and this is made available to families who are struggling with their debts.
The American Bankers Association, which represents many banks, financial institutions, and credit card companies, has also confirmed that credit card debt settlements are becoming more common in the industry as the result of relief and assistance programs that the government is encouraging. The banks want to be able to say that yes, government help is resulting in more assistance being provided to families.
Bank of America has received tens of billions of dollars in federal government assistance, and they are one of the banks that is confirming that they are settling more credit card accounts. They are deciding on a case by case basis whether to settle with the customer, and how much of the debt to eliminate. Many speculate that the government has put added pressure on Bank of America to take this approach due to the amount of aid they have received. If you do not have success in settling your debt with them, find out how a debt settlement company may help. More.
Another recipient of federal aid is American Express. They are also providing additional relief to their customers as a result of the government help. American Express has apparently empowered front line employees, or so called customer service representatives, to be able to provide customers with options to reduce or eliminate their credit card bills. They are trying to make the process as simple as possible. Find more on the American Express hardship program. More.
They are providing a wide variety of credit card debt assistance programs to families. HSBC is taking a very pro-active approach to this issue. There are examples of which they have offered certain customers a plan that will eliminate about 10-20% of their debt. Iin some of those cases, the customer rejected the initial offer as they were still not able to pay the bill, and then HSBC would come back with an even better debt reduction offer for the customer. In some cases they would eliminate up to 50% of the customers outstanding credit card bills.
While HSBC did receive government assistance and a bailout, theirs came from the United Kingdom as they are based there. HSBC has really started this program to protect themselves, as they would rather receive something from the delinquent account rather than see the person file for bankruptcy, in which case they would get zero. When dealing with this lender, or any other for that matter, consider a credit counselor when negotiating with a bank.
One of the biggest benefactors of government aid is Citi. Tens of billions of dollars were provided to them. Many speculate that Citibank is working closely with the government to provide credit card debt help to qualified low income individuals. Citibank, also known as Citigroup, has also empowered employees to provide assistance, and they may also proactively call customers who are falling behind in paying their credit card bills to offer them plans and see what else they can do to help.
This company also offers other options, such as consolidation. For customers of this bank, you need to also consider debt consolidation loans if having difficulty in working with Citigroup or any other bank. More.
The bottom line is additional help is being offered by credit card companies, banks, and other lenders. All across the industry this is occurring. Discover Card, JP Morgan, and many others are participating. Whether it is the result of encouragement from the government to help with debt, or whether banks are doing this in their own self interest, now is the time to take advantage of these opportunities to try to reduce and get out of debt.
If you are not comfortable in calling the issuer yourself, you can learn about some debt negotiation tactics that may be useful when talking to any bank or card issuer. Continue.
While it is true that more and more assistance with credit card bills is available for hard pressed consumers, the fact is that not only are banks trying to help as a result of government pressure to help with credit card debt, but the banks are also doing this in their own self interests. If someone stops paying their bills completely and files for bankruptcy, the banks lose out as well. They would not be able to get any money from that customer if they file for bankruptcy, and the bank would rather settle to get something.
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