Credit Repair Attorney

The practices of credit card companies remain a mystery to many until steps are taken that result in higher interest rates, defaults entered on credit ratings and binding arbitrations.  According to Reuters, American Express CEO Kenneth Chenault spoke to a group recently that tacitly backed Congress’ intention to look into such tactics as “universal default,” a practice whereby all of a consumer’s credit card rates rise if he or she is late on just one account’s payment.“He criticised the use by some competitors of “universal default”, which triggers higher, and unexpected, interest rates if the consumer is late paying another credit card bill, a home mortgage, a utility bill or even a book club membership.

Chenault said American Express did not do this and that a number of other credit card companies had stopped because of recent congressional interest in credit card practices.

“What I’m not going to do is defend practices that I don’t think work,” Chenault said, referring to universal default. “We never put that in and a number of companies as a result of Congress getting involved have stopped doing it.”

Congress is scrutinising what are seen as abusive and deceptive practices by some card companies, which have also been criticized for using heavy-handed tactics to push up Americans’ debt levels.”

As you see, taking on enormous credit card companies by yourself is not advisable.  If you need to improve your credit, contact the credit repair attorneys at Smith & Garg to schedule an initial consultation.