Las Vegas, NV – One of the largest banks in America and issuer of credit cards denied a request from a longtime customer for a reduced payment during his period of financial hardship.
We have all heard it before, if you are facing financial difficulty and cannot make your credit card payments, you should contact your creditor. A borrow experienced first hand that creditors of credit cards and line of credit are unwilling to offer any kind of reduction or modification of payments to assist a borrower during these economic changing times.
The borrower originally had two lines of credit. The borrower had used and paid on the lines of credit for many years. The borrower had never missed any payment. Then the banking crisis hit. Without any prior notice, the bank closed both lines of credit to any new charges. While this angered the borrower, he continued to make the payments. After a few years, one of the lines of credit was paid off. For the next two years, the borrower paid on the remaining line of credit. The borrower paid over 60% of the balance from where it was when the bank closed the account.
Recently, the borrower has suffered a dramatic loss in income. The borrower did what we have all been told to do if we experience financial difficulty, that is, discuss it with our creditor.
The borrower called the bank and explained that his income had gone down and requested a modification of the payments. The bank took the borrower’s income and expenses, and after a few minutes, the bank simply stated that they could not help him. The reason the bank gave was that because the borrower’s income was not enough to pay his living expenses, that he would not be able to make a reduced payment. Therefore, the bank denied any type of reduced payment and expected the borrow to continue with the full regular payment.
Flabbergasted, the borrower requested to speak to a supervisor. After all, the borrower already knew he was in financial trouble, his income had been reduced. He wanted to find a way to continue payments to the bank. He simply needed a smaller payment. The supervisor got on the phone and stated the same thing. That because the borrower could not afford a reduced payment, they would have to keep the higher regular payment.
The borrower asked why couldn’t the bank accept a lower payment for a year and then increase the payment afterward. This would allow the borrower to maintain a manageable payment without changing the repayment period. The bank declined this request. It stated that the because the borrower’s expenses exceeded his income, the borrower would be unable to make the lower payment and the bank would therefore take a loss. What?
If the bank believes the borrower cannot pay all of his basic living expenses and pay a reduced credit payment. How is the borrower supposed to make the higher regular payment. The bank supervisor insisted that there was nothing they could do for him, and told him to “have a nice day.”
This is an true story and makes me crazy. This is one of the largest banks in America that regularly advertises about all of the community good it does. I say hogwash.
I do not believe that banks and other lending institutions have ever offered anything that is truly helpful to borrowers facing financial hardship. The reason is simple. Assisting a troubled borrower is against the banks core mission. That is to make money for the stock holders. And I understand that. They are in business to make money. As much money as they can. YOU NEED TO UNDERSTAND THAT. What is a troubled borrower to do?
You should do everything you can to legally protect yourself and your family. That’s your core mission.
If you are unable to make your payments, or not saving for your retirement because you are paying too much on credit card debt, you should get powerful information about Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Nevada. Bankruptcy is the most potent and effective protection an ordinary person has against debt.