Skip to comments.Regulators Nix Credit Card Forgiveness Plan (No pie for you!)
Posted on 11/12/2008 2:59:29 PM PST by jimbo123
Federal bank regulators changed their mind Wednesday, revealing they have rejected a request by banks and consumer advocates for a program to let lenders forgive huge portions of credit card debt.
A Treasury Department agency rejected the request for a special program that would allow as much as 40 percent of credit card debt to be forgiven for consumers who don't qualify for existing repayment plans.
An agency official says it objects to allowing banks to defer tax losses for several years on the forgiven debt, as would occur under the special program.
(Excerpt) Read more at cbs3.com ...
People are losing faith in their government with the shifty processes in effect. Different day means a different solution.
Get concrete, fellows. You’re gonna cause real problems.
Think maybe people will stop trying to get stuff they don’t need with money they don’t have?
You may think that I’m a dreamer...
It was only the low intelligenced Obama supporter that ever thought the bailout was anything but another way for the taxpayers to be stiffed. Nothing done to date seems to be designed to help the average person just the money man on Wall Street and friends of Goldman Sachs guy Paulson.
Surprise! Did anyone really believe that normal people with no connection to government were going to get a MOLECULE of that pie that they are paying for? Of course not. As individuals, we are “not too big to fail.” And that is a good thing. We don’t need to reward behavior that we don’t want more of. But that should go for Fannie Mae, the banks and all the corporations crying for help as well.
Round square. Misunderstanding.
Why would the Federales want to forgive credit card debt? After all, it's on of their primary means of holding Americans and their families in perpetual bondage on the Federal plantation!
No, as long as there are dishonest real estate agents people will be sold home they cannot afford.
A Treasury Department agency rejected the request for a special program that would allow as much as 40 percent of credit card debt to be forgiven for consumers who don't qualify for existing repayment plans.That anyone had even considered so hare-brained and perverse a scheme boggles the mind. We were going to reward people for running up credit card debt?!
The “regulators” are insane. There’s no lack of liquidity in the market. Banks are hoarding because there’s no way to establish actual value on assets. Liquidity isn’t the problem as much as confidence. As long as the Administration continues changing plans every day, the problem will get worse, much worse.
I say go into debt now so you can repay it later. Buy something tangible. Down the road, inflation has got to rear its ugly head and you can pay off your debt with inflated dollars. /s
Aw, shoot! I just went out and bought $20k of stuff and was planning on my 40% discount! I guess now I won’t be getting it. I’ll just stop paying my bills and see what happens. /not really
Or how many are thinking, “Let me buy everything I might possibly need for a year right now because my company is closing down and laying everyone off. Then declare bankruptcy.
More like, "I'd better hurry up and get that 60-inch plasma while it's still on sale at Best Buys" and then declare bankruptcy.
No government cheese for you! :}
This instability has to be more nerve wracking for everyone than making a decision and sticking to it. One guy is allowed to fail (Lehman Brothers), one is bailed out (AIG) and others are subsidized. Others, who knows (GM, Ford, AmEx). The indecision and inconsistency keeps everything in flux and therefore volatile.
I think it’s not so much that people spend money they don’t have, it’s that the credit card companies are rapacious, finding every excuse in the book to charge usurious rates of 30% or higher.
They’re like the Mafia, only you pay vig to the credit card company, not to Joey No Nose.
It’s why I pay for everything using a debit card, no interest, no fees.
****Federal bank regulators changed their mind Wednesday, revealing they have rejected a request by banks and consumer advocates for a program to let lenders forgive huge portions of credit card debt. ****
What is not generaly known is when you get credit card debt forgiven the card company is required to notify the IRS.
The IRS considers forgiven card debt as income in the form of goods and services and will come demanding payment for taxes on that forgiven debt.