Lawyers United for Debt Relief Declares War on the Credit Card Companies and Banks

Oct. 12, 2011 - PRLog -- The Lawyers United for Debt Relief is declaring war on credit card companies and banks that issue credit cards that are taking advantage of their customers by charging them interest rates that historically were only illegally charged by organized crime.

Laws for each state vary but Usury Laws were originally enacted to protect the consumer. The definition of the word Usury is the practice of charging excessive, unreasonably high, and often illegal interest rates on loans. However there are many instances where the usury law does not apply, such as credit card debts.  “Usury laws are good for installment loans but for credit card holders there are virtually no interest rate limits that are applicable to any bank or credit card in the country”, said attorney Jerome S. Lamet.

There are many different credit cards with various rules and interest rates for many types of consumers with just as varied credit backgrounds. There are national banks offering zero interest and other’s charging as much as 50 percent interest and higher which is legal as long as the issuer fully discloses the terms as required by the federal Truth in Lending Act.

Other than the fine print and disclosures, credit card companies are allowed to continue to increase their rates, which prevents many debtors from ever paying off their balances. In recent years, credit card companies have harshly raised interest rates and penalty fees without regard to whether or not a consumer can afford it. As the housing market continues to tank and banks continue to have mortgage related losses, many banks are increasing credit card rates to boost revenue. Getting hit hard are consumers for which an increase in credit card rates will just make it tougher to pay their bills at a time when many household budgets are already maxed out.

“In most cases, today’s credit card companies act like loan sharks charging exorbitant interest rates that historically were charged by organized crime but have become legal as part of the U.S. banking industry,” Lamet continued. “We’ve seen enough damage to our clients and if the banks will not work with our clients to reduce their interest rates to a rate that their recession budget can afford, we will have no other option but to suggest that our client consider bankruptcy or other legal options.  We will also represent the client to ensure creditors don’t harass the client moving forward.”

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About LUDR
LUDR assists individuals and families get out of debt. We strive to minimize the burden caused by credit card debt, unpaid medical bills, disconnected utility/phone bills, etc. as well as eliminate harassment our clients experience from collection agencies and debt collectors. LUDR also provides education on financial planning, debt relief advice and legal services in regards to debt management. We attempt to work with creditors to lower their interest rates and set up re-payment plans that are achievable in these dire economic times. For more information contact us at http://www.ludr.org