Credit Card Debt In Arizona

While the Credit Card Act 2009 was supposed to help consumers, many in Arizona are still feeling the pinch of greedy creditors. A disturbing account of credit card activities is chronicled today in the Arizona Republic, telling the stories of many Arizona credit card holders who are not feeling any positive effects from the Credit Card Act. In fact, their situations are actually getting worse.

Hit by fallout from the recession, housing slump and rising unemployment, many institutions have scaled back lending. Last week, the American Bankers Association reported record-high delinquencies in three consumer areas: home-equity loans, equity lines of credit and credit cards.(AZ Republic)

According to the American Bankers Association, it’s Washington’s fault. When they began passing legislation to regulate the credit card industry, as well as home loan lenders, they gave the American people false hope that things in the industry would change for the better. (Really? That’s their reasoning!)

"Sometimes, expectations don't always line up with reality," said Tanya Wheeless, president and CEO of the Bankers Association.

Of the problems that Arizona residents are facing with their credit cards is the out-of-the-blue rate changes, the limit decreases, and the supposedly-fixed-rates being changed to variable rates. Credit card holders in Arizona, and around the country, are furious.

"After they get bailout money, they want more," said one Arizona resident fighting with his credit card company. "Our tax dollars are not enough for them."

But, the bankers and credit card companies continue to blame the government for the new legislation. It’s the new legislation, they say, that has made it harder for them to provide for their clients. Lenders warned Washington that the new legislation would lead to higher borrowing costs, which now seem to be setting in.

While owning a credit card and a bank account usually costs the consumer no additional fees if they make their payments on time, fees for making withdrawals from ATM’s not owned by their bank and bouncing a check are rising dramatically.

The bottom line is to keep an eye on your credit card statements every month. If you see a discrepancy, visit or call your bank. According to the Arizona Republic article, bankers are more willing to work with you if you contact them early. Instead of tossing your statements into the junk drawer to be looked at later when you have time, look at them as soon as they arrive. If there is a problem, a rate hike, or a new fee, call immediately.


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