Many consumers are confused about what to do about their finances, in particular Unsecured Debt.

Without any wasted time, I will get to the point.

What Mr. Detweiler and Bob Markoff, a collection attorney tells us below leads to confusion, distortion and mis-representation. Sadly the sources we have look to for truth have and are using their positions in media and high office to lie to us. The bigger the lie, the better the out come for the liars. Below each of their statement, I will present my view with supporting research.

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My comments on the industries position follow their statement.

For the entire AP article Click Here

The practice of charging higher rates and fees to cardholders with risky credit was devised as a means to protect lenders against the risk of default while keeping costs low for consumers who paid their bills on time, said Edward Yingling, president and CEO of the American Bankers Association, which opposes the legislation.

Yingling says the new rules will limit the card companies' ability to price according to risk. The result, he says, will be that every card holder will have to pay a higher interest rate to cover the cost when other customers default. Lenders also will be more reluctant to issue cards in general, he adds.

"Less credit will be available generally, which means some consumers and small businesses will not be able to obtain credit cards at all, particularly younger people and startup small businesses," Yingling said.
Dodd, who championed the bill, said this argument is absurd and "a little like Chicken Little."
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Novation is a term used in contract law and business law to describe the act of either replacing an obligation to perform with a new obligation, or replacing a party to an agreement with a new party. In contrast to an assignment, a novation must be agreed upon by all the parties to the original agreement.[1] The obligee, the person receiving the benefit of the bargain, must only be given notice. The obligor, the party making the novation, must only make the new obligor aware and receive consent from the new obligor. A contract transferred by the novation process transfers all duties and obligations from the original obligor to the new obligor. Complete Wikipedia Definition – Click Here [Read More!]

Wikipedia describes derivatives as follows:

“Derivatives are financial contracts, or financial instruments, whose values are derived from the value of something else (known as the underlying). The underlying value on which a derivative is based can be an asset (e.g., commodities, equities, mortgages, real estate, loans, bonds) , an index (e.g., interest rates, currency exchange rates, stock market indices, consumer price index (CPI), weather conditions, or other items. Credit derivatives are based on loans, bonds or other forms of credit. The main types of derivatives are forwards, futures, options and swaps.”

Derivatives 101: Useful knowledge in plain English about credit default swaps, interest rate swaps, futures and other complex financial instruments that help centralize the financial system, steal money in the trillions and make the financial news incomprehensible.
Derivatives 101: Engineering The Slow Burn - Catherine and The Solari Report,May 6, 2009 at 5:05 pm
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By Tyler Metzger | May 13, 2009 | Living with credit

Important prediction: There are about 1,500 more images for the keyword "crying" than for the keyword "credit card" in iStockphoto. I predict the number of crying images to triple before the end of the year.

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