News, Research and Reports

Important News

BANKS GET BAILED OUT BY THE GOVERNMENT

In late 2008, The United States Government put your tax dollars to use providing HUGE CASH BAILOUTS to the same banks and financial institutions that continue to charge outlandish interest rates to American's in debt. Here is a look at the banks who took your tax dollars and the staggering amounts of Federal Bailout Funds they received:

Creditor / Bank	Market Share of Credit Cards	Bailout Funds Received
Chase	$165.87 Billion	$25 Billion
Bank of America	$150.82 Billion	$45 Billion
Citi	$102.54 Billion	$45 Billion
American Express	$78.16 Billion	$3.39 Billion
Capital One	$55.46 Billion	$3.56 Billion
Discover	$48.90 Billion	$1.2 Billion
Wells Fargo	$30.89 Billion	$25 Billion
HSBC	$26.09 Billion	N/A

If you are in need of a bailout, contact us today to discuss your situation and learn more about solutions that can help provide you financial relief in your time of need.

CREDIT CARD ISSUER'S RESPONSE TO THE BAILOUT AND CONSUMER CREDIT CRISIS:

The response from the banks and credit card companies has been:
Raising Fees

Raising Interest Rates

Substantially Reducing Credit Limits

Cancelling Credit Accounts

Customer satisfaction rates are at an all-time low and creditors still have no usury laws. Banks received more money then they currently have in credit card defaults. If you have had a financial hardship and can no longer afford your payments, call USA Debt Professionals at (877) DEBT-070 to find out if you qualify to have your debts professionally negotiated to lower balances.

Online News Articles

Wall Street Journal
April 9, 2009 - BANK OF AMERICA TO BOOST RATES ON CARDS WITH BALANCES
http://online.wsj.com/article/SB123922365800702453.html

Reuters Online
July 1, 2009 - CITIGROUP RAISED RATES ON OVER 13 MILLION CREDIT CARDS IT CO-BRANDS WITH RETAILERS SUCH AS SEARS
http://www.reuters.com/article/idUSTRE5600ZI20090701

The Washington Post
July 2, 2009 - CREDIT CARD ISSUERS RAISING RATES AHEAD OF NEW LAW
http://www.washingtonpost.com/wp-dyn/content/article/2009/07/01/AR2009070103868.html

Credit Card Statistics

http://www.creditcards.com/credit-card-news/credit-card-industry-facts-personal-debt-statistics-1276.php

28 percent of those surveyed say their ability to pay off their credit card balance has become more difficult.
(Source: Javelin Strategy & Research, "Credit Card Issuer Profitability in a Difficult Economy," July 2008)
Only eight percent of cards with penalty rate conditions offered to restore the original rate terms when payments are made on-time, usually after 12 months.
(Source: Pew Safe Credit Cards Project, March 2009)
72 percent of cards included offers of low promotional rates which issuers could revoke after a single late payment.
(Source: Pew Safe Credit Cards Project, March 2009)
In the last 12 months, 15 percent of American adults, or nearly 34 million people, have been late making a credit card payment and 8 percent (18 million people) have missed a payment entirely.
(Source: National Foundation for Credit Counseling, 2009 Financial Literacy Survey, April 2009)
93 percent of cards allowed the issuer to raise any interest rate at any time by changing the account agreement.
(Source: Pew Safe Credit Cards Project, March 2009)
77 percent of surveyed credit card issuers (17 of 22) answered “Yes” to the question “Can you increase my APR or change my terms ‘any time for any reason’?” This includes all Top Ten issuers – even Citibank, which pledges not to change a customer’s terms before the card’s expiration date.
(Source: Consumer Action credit card survey, July 2008)
Between 1989 and 2006, the nation's total credit card charges increased from about $69 billion a year to more than $1.8 trillion.
(Source: Demos.org, April 2008)
As of March 2009, U.S. revolving consumer debt, made up almost entirely of credit card debt, was about $950 Billion. In the fourth quarter of 2008, 13.9 percent of consumer disposable income went to service this debt.
(Source: U.S. Congress' Joint Economic Committee, "Vicious Cycle: How Unfair Credit Card Company Practices Are Squeezing Consumers and Undermining the Recovery," May 2009)
Average credit card debt among indebted young adults increased by 55 percent between 1992 and 2001, to $4,088.
(Source: "Generation Broke: Growth of Debt Among Young Americans")
The average college graduate has nearly $20,000 in debt; average credit card debt has increased 47 percent between 1989 and 2004 for 25-to 34-year-olds and 11 percent for 18-to 24-year-olds. Nearly one in five 18-to 24-year-olds is in "debt hardship," up from 12 percent in 1989.
(Source: Demos.org, "The Economic State of Young America," May 2008)
26 percent of Americans, or more than 58 million adults, admit to not paying all of their bills on time.
(Source: National Foundation for Credit Counseling, 2009 Financial Literacy Survey, April 2009)