The insane credit card debt industry exists only because some people allow it to become a nightmare in their life while others easily see the insanity of greed and have no problem taking money from it when it's thrown at them. Once you understand the multiple personalities of a card you will know what to do.
The Diners Club card started it all with a system that allowed restaurants to accept the card in lieu of cash and the cardholder had to pay the entire amount at the end of each month which was almost like a debit card. When one of the diners did not have enough money to pay the account in full, the idea of paying interest on the account was born.
The roaring 20s was in full party around the clock mode and banks were flinging money at everyone until some savvy investors realized their money was becoming devalued making their stocks worthless. This led to the stock market crash followed shortly by banks closing as people tried to get their money into their own hands.
World War II put the nation back to work and ended the depression but those greedy bankers were ready to "party it up" again after the war. So to get the card idea back into circulation they dumped millions of cards on an unsuspecting nation. Use the search term "the Chicago debacle" to read about this unbelievable "throw money at the people" story and be sure to pay close attention to what Congress thought about the insanity.
Some congressmen wanted to outlaw cards altogether but as in all congressional thinking a compromise was reached. Give the people a choice of participating in the madness and being a slave to the banker or opt out of the card madness and be rewarded for doing so. The resulting law was called the Fair Debt Collection Practices Act.
Since that time people have run-up some very hefty card accounts but as usual greedy bankers and Wall Street insiders continued partying until their little bubble popped again. This time hoping to save another depression the government took money from the people andave it to the banks. They called it a bailout but the bankers kept the party going full blast by handing out multimillion dollar bonuses to the planning execs.
Here comes the job loss routine again with millions of people unable to pay the plastic demon so the panic switch is turned "on" again. Everyone forgot about the 50-year-old law allowing them to walk away from the plastic and be paid by collectors that tried to take money from them. Consolidation loans, credit counseling and debt settlement companies sprung up to "help" those that had forgotten about the Fair Collections Act.
When you stop paying the account, banks collect the insurance, write off your account for tax purposes, never lose a penny and then sell your account information to the collections people who will begin their phone and collection letter harassment. Use the search term "FTC debt video" to see this old law in cartoon form which explains your legal rights.
Record the collectors' calls because they are quite valuable. When your rights are violated large amounts of money are awarded to you. Use the search term "man wins $ 1.5 million from collector" to see how beautifully this part of the legal system works. Just give the caller your name and nothing more. Then smile each time he calls you a name or threaten you.
If you wish to see more information about the insanity then please use the search term "the gig is up – money the Federal Reserve and you" to watch this fact filled historical video that walks you through the antics of the banking industry. This 90 min. Seminar, presented at the University Of Colorado School Of Law, will change your life forever
After examining the credit card debt industry insanity you know it's not very funny for those who do not know the truth. There's no reason to pay the account anymore because that angry Congress back in the mid-60s made it possible for anyone to walk away from the account and even be rewarded when collectors try to perpetuate the fraud. Would you believe jury awards have topped $ 8 million for a single collection case?