Debt Collectors Fleece Relatives of the Dead

Bank accused of shady practices in collecting cash from bereaved relatives

(NEWSER) - Bank of America has been misleading customers into believing they have to pay off the credit card bills of dead relatives, TPM reports. One customer was outraged when a bank rep tried to first trick, and then guilt-trip him into paying his dead mother's bills. A former rep for the bank's collection unit says that the practice is officially encouraged. More»

Credit card, cell phone companies scramble to collect by themselves

(NEWSER) - Credit card and cell phone companies are scrambling as two major arbitration firms back out of the business of settling consumer disputes, the Wall Street Journal reports. The National Arbitration Forum—accused in a Minnesota lawsuit of misleading consumers into thinking it was impartial—will stop taking cases this week, and the American Arbitration Association says it will follow suit until new guidelines are established. More»

(AP) - Congress has sent President Obama a bill with sweeping new rules for the credit-card industry that will affect just about every American. The House approved the measure this afternoon, 361-64. The Senate OK'd it yesterday, 90-5. The new restrictions will protect debt-ridden consumers from many of the surprise charges common in the industry, like over-the-limit fees and a charge to pay by phone. More»

Cash-strapped consumers claim companies charge fees without reducing debt

(NEWSER) - State attorneys general are being overwhelmed with complaints about “debt settlement” companies that promise consumers relief from mounting bills but rarely deliver, the New York Times reports. The number of such companies, which often collect fees of 15% of the total debt to negotiate with creditors, has tripled in recent years as consumers who binged on credit now face a reduced capacity to pay. More»

Nicholas Kristof hopes young idealists can save American capitalism

(NEWSER) - Nicholas Kristof was dumbfounded when, during a recent college lecture, a student asked him if banking jobs were immoral. "I've been sympathetic to the Occupy Wall Street movement, but look, finance is not evil," he writes in the New York Times . It's an essential force, allocating capital to efficient uses. But there's a caveat: When young people do get banking jobs, "I hope that they'll show judgment, balance, and principles instead of their elders' penchant for greed and rigging the system." More»