A lurking detail

[nancylebov]

I should also point out that bundling and selling credit also happens with credit cards. I almost got in a bit of trouble years ago because I started getting stuff in the mail from Bank of America, but since I didn't have an account with B of A I assumed it was junk and threw it out. Until I realized that I hadn't been getting bills for my credit card, and discovered that MBNA had sold my credit account to B of A, and I was delinquent on my payments.

So far reselling credit card accounts has not yet led to problems. But the huge number of credit card offers that go out to just about everybody may be the result of relaxed standards due to the removal of direct consequences to the lenders. Also, some years ago the major credit card companies managed to get Congress to make filing for personal bankruptcy a lot harder. If credit cards go south, we will be in a depression.

As stated, the reselling of credit card debt hasn't made trouble yet, but if it's been as sloppily handled as mortgages, this is bad. And if a lot of people default on their credit card debts-- as may well happen if the economy gets bad, this could amplify the effects.

For what it's worth, excessive credit card offers have been going out for years, so it's not the result of any recent changes.

Comments

[bradhicks.livejournal.com]

It is. And two banks, Bank of America and JPMorgan/Chase, are getting nearly all of it, and nearly all of the mortgage mess that the government doesn't buy up, dumped on them.

This strikes me as a really good time to have your money in a credit union.

[dcseain.livejournal.com]

I bank wit ha credit union. My WAMU card will before long be a Chase one, though.

[fallenpegasus]

There is a marker you can put in your credit report that means "dont send me any offers of credit".

Its well worth it, especially since it's free.

[demonspawnmom.livejournal.com]

Do you just ask for it or what?

[fallenpegasus]

Instructions are linked from here:

http://fallenpegasus.livejournal.com/335459.html