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Banks should support customers to avoid defaulting on payments
A recent survey asks banks to support customers before they default on their credit card payments. The Consumer Action's 2005 Credit Card Survey is based on the nonprofit organization's assessment of 146 credit cards from 47 banks between April 1 and June 21. The survey shows that nearly 50 percent of the banks surveyed have universal default policies.
A falling credit score is stated to be one of the main causes of a universal default rate hike. Other factors include late payment of mortgage, car loan, or other credit obligations, clients exceeding the credit limit or having too much debt. If you have too much credit, get a new credit card or even inquire about a car loan or mortgage, you could expect a default rate hike. Destinationcrm.com reports:
"When people call the credit card company and say, 'I'm having trouble meeting my minimum payment,' [it] is the wrong thing to do in today's world, because the credit card company will very often come back at them with a much higher interest rate or a lower credit limit, " says Linda Sherry, director of national priorities for Consumer Action (CA), and the survey's coordinator.
Read more: Credit Card Woes Continue For Consumers
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