Funny how impending doom can change their minds. This remains an industry that is just begging to be regulated. The Republicans were more than happy to give this industry everything they wanted including holding careless credit card holders accountable for eternity but suddenly when the tables are turned, look at who suddenly wants to work with consumer groups. That's great, but let's remember this when the industry is back and starts looking for new ways to hold everyone else accountable for reckless spending.
The next time credit card companies want to send out pre-approved credit cards to 2 year old kids (as happened with a friend) or giving out cards to people who they knew could never make payments, remember who sent the cards in the first place.
Big banks have formed an unusual alliance with consumer advocates to urge the government to allow huge portions of credit card debt to be forgiven, a turnabout from recent years when the banking industry lobbied strenuously to make it harder for consumers to erase their credit card debts in bankruptcy.
The new pilot program — which the banks hope will become permanent — could involve as many as 50,000 people struggling with credit card debt. On an individual basis, the amount of debt to be forgiven would rise according to the severity of the borrower's financial situation, up to a maximum of 40 percent.
