Atlanta Bankruptcy Attorney Blog

Maybe 2010 will someday be remembered as the year of credit card reform.

Laws have already been passed to limit unfair credit card fees, interest rate increases and billing cycles. And now the Federal Reserve is asking for another limit. If passed, credit card issuers won't be able to you charge a fee higher than the amount of your violation. For example, if you go $10 over your credit limit, you'll only pay $10 or less - not the $39 fee or some other ridiculous number you pay today. Additionally, cardholders will be protected from inactivity fees and from being charged multiple fees for the same indiscretion.

Sounds like a good deal, right? But here's the thing - if you want to take advantage of this new law, you're going to have rethink the way you use credit. And filing for bankruptcy might be the way to do it.

Continue reading "Atlanta Consumers Could See Lower Credit Card Fees With New Legislation" »

You've probably heard it before, but switching to cash instead of credit has the potential to save you a lot of money.

Just to name a few benefits, using cash means you don't have to pay interest, there's no risk of overspending since you're limited to the contents of your bank account and you're more likely to be mindful about spending since you actually see the physical money leave your hands.

But even cash can have its drawbacks - in particular, ATM fees. Sure, it's free to take money out of your bank's ATM, but what about those times when you need to make a purchase but your bank is nowhere in sight? Chances are you head to whatever ATM is nearby, and that will cost you dearly. First, withdrawing from another bank's ATM can result in a fee of $3 or more. Then, your own bank will hit you with a penalty for using a competitor's machine. In the end, taking out just $20 can cost you 25% in interest!

Fortunately, just a little extra planning can ensure that paying cash remains a good deal.

Continue reading "Cash Can Save You Money, If You Use the Right ATM" »

If you're shredder-happy when it comes to your junk mail, you may want to start exercising a bit more caution.

Americans are used to being bombarded with junk mail from creditors, from new card offers to routine legal notices. But with credit card companies coming up with ways to counteract the new consumer protection laws, those notices are actually starting to contain important information.

For example, Citibank and Bank of America notified consumers that they would be piloting an annual fee, while another company, American Express, announced plans to punish late-paying cardholders of Delta Airlines, JetBlue and Starwood and Hilton hotels by taking away their mileage and hotel rewards points.

What else could consumers face in coming months? Let's see, bigger late fees, higher interest rates and fees associated with customer service calls, paper statements or simply inquiring about having a higher credit limit. So what can you do to keep up with all these potential changes? Simple: check your mail!

Continue reading "Keep An Eye Out for New Credit Card Changes" »

If banks have their way, free checking could become a thing of the past. But we don't have to accept it without a fight.

You know how I discussed the way credit card companies have been hiking up rates in light of the new consumer protection legislation? Since they can no longer charge unfair fees or trick us with sneaky term changes, they're finding other ways to make us pay - i.e., annual maintenance fees and lower credit card limits.

Well, banks seem to be headed down the same path. With Congress discussing some sort of protection against overdraft fees - those sneaky charges banks hit us with when we accidentally charge more on our debit cards than we have in our account - banks are starting to look for other sources of income. After all, most of their profits these days come from fees, not lending. And their latest source of money is the monthly maintenance fee.

Continue reading "Atlanta Bankruptcy Attorneys Wonder What Happened to Free Checking" »

For every two steps forward, credit card companies just have to take one step back.

You've probably already heard about the new credit card legislation going into effect to protect consumers from hidden fees and unfair rate hikes. As of February, that means no more double-billing cycles. No more confusing fine print. No more raising your interest rate unless you're at least 60 days late on a payment - and even then, restoring your original rate if you prove that you can pay your bills on time.

That's the good news. The bad news? Creditors say that they'll have to make up for their lost income by punishing all of their customers - good credit or not - with annual fees and higher interest rates. And they mean business. Bank of America recently announced plans to test a $29 annual fee on its rewards cards.

Continue reading "Creditors Add New Fees Before Card Reform Takes Effect" »

Yes, I know that April 15 has long come and gone. But 11 million taxpayers requested a six-month extension for their 2008 taxes, which means that - for many Americans - the real do-or-die deadline is this Thursday.

With money tighter than ever, it's understandable that so many of us are wracking our brains, trying to figure out how we're going to pay that tax bill. Or maybe we were able to scrape enough together to pay our taxes on time - but we're not sure we'll be as lucky less than six months from now when we do the tax dance all over again.

But here's some advice - even if you don't have the money, file anyway and worry about how you'll pay later. If you don't file, you'll start racking up penalties immediately after your deadline - sometimes up to 25 percent of what you owe. In the best case scenario, you'll owe a lot more money. Worst case scenario, you could wind up in jail. You're better off filing and only paying what you can afford, whether that's half your payment, 10 percent or - for the moment - nothing at all. The IRS can be surprisingly lenient. No, they won't forgive your debts - but they may let you work out an installment system or a way to lower your penalties.

Continue reading "Don't Wait Until It's Really Too Late To File Taxes " »

It sounds too good to be true. You don't need a bank account. You don't need a good credit score. You just load your paycheck onto a pre-paid debit card, and you can pay without the hassles of a credit card or the inconvenience of cash.

You've probably started to see pre-paid debit cards in stores - maybe you've even received one as a gift or purchased one for yourself. There's a lot to be said for pre-paid plastic, but unfortunately the old adage pretty much sums it up--if it sounds too good to be true, it probably is. As with bank accounts, regular debit cards and credit cards, banks have found a way to profit from our quest for convenience, according to the New York Times.

How? By charging you for everything under the sun, including activating the card, making purchases, checking your balance, going to the ATM and even just possessing it - it's called a monthly maintenance fee. Banks can also charge you for not using the card - an inactivity fee. As you can imagine, you can lose your money in fees faster than you can spend it.

Continue reading "The Expensive Truth Behind Prepaid Debit Cards" »

In light of growing discontent over their unfair debit card fees, some big banks are considering changing their tune - ever so slightly.

Financial giants JPMorgan Chase and Bank of America just announced changes to their overdraft protection policies. Though they won't eliminate the controversial program, both banks plan to limit the amount of overdraft fees a customer can rack up per day and allow consumers to choose whether to opt in to the program, which is currently automatic. But will it be enough?

Right now, many people don't even realize they're part of their bank's overdraft protection program - an ironic name, considering it doesn't do much to protect consumers - until they're surprised by overdraft fees on their bank statement. What is overdraft protection? When you overdraw with your debit card, your bank kindly allows the transaction to go through by covering the difference - without telling you about it.

Continue reading "Banks Limit Debit Cards Fees, But Will it Make a Difference?" »