I found an interesting clause in my new credit card agreement, what do you think?

I know that credit card companies are up to no good now that the CARD act is in place, so I decided to take the time and read every single line of my new %26quot;agreement%26quot; they just sent out.



In the section they define as %26quot;Default%26quot;, they state that if you are in default, they will charge you a %26quot;fee%26quot; and I'm assuming tack negative delinquent information on the account and report it to the credit bureaus. They say that I will be in %26quot;default%26quot; if I fail to make the minimum monthly payment by the due date and here's the *interesting* part:



%26quot;You will also be in default if your ability to repay us is materially reduced by a change of employment, an increase in your obligations, bankruptcy...your death...your failure to abide by this Agreement...[ect].%26quot;



Can this seriously be interpreted as for example, I change my job or get laid off that I will be put into default according to their terms? And who do you suppose defines %26quot;obligations%26quot; or determines how the %26quot;increase%26quot; is evaluated? I also thought that your death nullifies most financial obligation contracts...apparently not here; they also don't specify who acquires debt obligation in the case of my death. They go on to say that they also have the right to demand full payment, collection fees, and %26quot;reasonable%26quot; attorney fees as well...again specifying %26quot;you%26quot; (the card agreement signer) as the payer.



I've always prided myself as having flawless credit, but given the new terms here - do you think it's better off declining the changes and closing my account?
I found an interesting clause in my new credit card agreement, what do you think?
Not if you change jobs by itself. Only if you change jobs and your income decreases significantly to the point that your debt to income ratio increases.



State laws: Your death causes your debts to be transferred to your estate for payment, not your family. So, any assets you own individually or jointly, may have to be sold to satisfy any outstanding debts. Life insurance passes to beneficiaries OUTSIDE of probate, so that money cannot be used to satisfy your debts (unless your estate is the beneficiary).



All that stuff is legal mumbo-jumbo to keep you ill-informed so that you don't understand what they are going to do to you when you go into default. The less you know and understand, the better off they are.
I found an interesting clause in my new credit card agreement, what do you think?
I suggest you simply quit using that card ... you can keep it open or close it ... although closing it could have a negative affect on your credit score as it raises your debt-to-credit ratio. As long as you pay in full every month you have no worries. Credit card debt can really eat at your ability to save for the future. Find a different bank to do business with, but they are about all the same.
I think all that the default statement just gives them the option to drop you or change the terms of your agreement based on your income. If you have a loan out for $500,000 and you lose your job and have no other income, why shouldn't they have the right to cut you off? It is invasive and it's a real shame that the whole intent of this legislation (to give more rights to the consumer) is actually hurting us all even more! If you have paid on time and keep low balances I wouldn't worry about it for yourself. . . but others will undoubtedly be screwed over by this backhanded attempt to use fine print against the credit holders. SMH!

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