Back in August I wrote about mandatory changes in the hideous tactics credit card companies use that trap consumers. Today, the second phase of these mandatory changes goes into effect.

I’ve had a personal interest in these changes as both Ronda and I got caught up in the traps that are now banned. Both of us spent two years wrapped up in a web that neither one of us felt was warranted and fought the sudden and drastic changes in terms, payments, and interest rates.

The Credit Card Accountability Responsibility and Disclosure Act happens to be 1,400 thick. I (nor you) should spend that kind of time reading, but I did find some of the bullet points from a Time article posted yesterday.

Here are some of the changes that go into effect today.

• Require credit card companies to tell customers when they plan to increase rates or other fees.

• Mandate standard payment dates and times, to keep companies from tripping you up into late charges by moving your due date.

• Limit fees, like charges for exceeding your credit limit or paying your bills online or over the phone.

• Mandate that monthly statements clearly show how long it would take to pay down your balance by paying the minimum.

• Curb interest rate hikes by prohibiting credit card companies from retroactively jacking up rates on existing balances until the customer is 60 days behind on payments.

• Forbid credit card companies from automatically enrolling customers in often-pricey programs that offer the option to charge beyond credit limits.

• Crack down on marketing campaigns targeting college students and other young adults, requiring anyone under age 21 who wants a credit card to either demonstrate the means to pay down their debt alone, or get an adult to co-sign on the account.

• Ban the practice of double-cycle billing, in which your creditor uses your average balance over the current and previous billing cycles rather than the previous one — a trick that can wind up costing you a pretty penny.

The biggest change that I’m sure will shock some people is that your credit card statements will now include a summary of not only how long it will take you, but how much money will be wasted in interest to the banks for making minimum payments. I’ve seen these examples years ago, and when people see that it will take 30 plus years, (even if they don’t charge another dime on the card) it will wake most poeple up.

I said it back in August, and I’ll say it again – I’m not a big fan of big Government. There are times when I’ll side with the Government stepping in however. While I hadn’t checked on a status for some time, (due to this mess being behind me, and finally agreeing to terms that were acceptable) I also found that one of the most obnoxious and cut throat collection firms in the industry is now out of business.

Thing is…if the Banks would have been abiding by these new rules in the first place, none of our ordeal would have ever materialized. We never argued that we owed the money – just the sudden interest hikes and the manipulation of our due dates that prompted the increase.

We did it the hard way – and forced to make some very tough decisions along the way. Better late than never I guess. These new rules and requirements will save others from the nightmare we had to endure.

It’s the way they should have been doing business to begin with. Otherwise, we wouldn’t have cut them off the way we did.

I’m just pleased to see these much needed changes and the elimination of tricks and tactics that put us in the situation we found ourselves. We can tell you from personal experience, they were much needed and warranted. 

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I’m not a fan of “Big Government”. I believe in capitalism, self-reliance, personal responsibility and that everyone needs to carry their own weight. That being said, there are instances that arise where Government intervention is not only necessary, but needed in order to stop greed and consumer fraud. One of those instances is the Banking and Credit industry.

Yesterday, the first phase of the Credit Card Accountability Responsibility and Disclosure Act went into effect. Credit card companies are notorious for holding payments until after the due date, jacking up interest rates, and changing terms and conditions without much written notice at all. If you’re unfortunate enough to have just one of these creditors “hold your payment” until after the due date, it starts a snowball effect where the rest of the creditors follow suit in raising rates. Before long, responsible consumers and users are in over their head with no feasible way out. I found the top five tricks used by credit card companies in this Fox 5 news report here that exposed their tactics.

Because this has been such a large problem affecting hundreds of thousands of consumers across the entire industry new legislation was signed back in May by President Obama. The first phase went into affect yesterday to protect consumers and keep the banks from pulling these underhanded stunts. (Video to the left) The second phase of the act will complete the reform in February 2010, preventing these tactics and placing the power back to the consumer.

While the new Accountability Responsibility and Disclosure Act has been big news this past year it’s only half the story of the injustice perpetrated by credit card companies and credit collectors. Creditors and collectors get even more brazen with even more consumer fraud, deceptive trade practices, and false advertising when you attempt to stand up and fight the deplorable tactics now corrected by the new legislation.

In the past, one of the fist things that happens when you decide to dispute a charge, an interest rate, or one of the many fees is a letter from a credit collector, (in our case Mann Bracken) to submit your case to an “impartial, independent and neutral administrator of arbitration proceedings”. The mission of the NAF (National Arbitration Forum) is as follows:

“Alternative dispute resolution (ADR) is a more efficient, predictable and amicable way to resolve conflicts and achieve legal decisions without the expense and inconvenience of going to court.”

Ronda and I have personally experienced this process, but found the entire proceeding a complete sham. What ADR does is find in favor of the Defendant (the bank) 94% of the time. In addition 64% of all cases sent to the National Arbitration Forum were handled by the law firm of Mann Bracken.

As a result, all of our disputes ended up in court anyway, (because we opposed the decision made by the NAF) and Mann Bracken was able to use the judgments handed down by the NAF to place a court order and judgment of “payment in full” in some cases. To make matters even worse, and show the desperation of the banks, who know changes are coming, Mann Bracken used one of the judgments against Ronda to garnish our joint bank account in an attempt to collect the payment in full.

No warning, no notice, just gone.

Ronda and I were able to file a “traverse” to keep the money out of the hands of Mann Bracken while we fought this hideous stunt in the courts. As a result, the court granted a 60 day continuance in order to settle the dispute. While Mann Bracken agreed in front of the courts, when negotiations again proceeded, nothing less than payment in full, including thousands of dollars more in interest, fees and court expenses would suffice.

Because of the deplorable behavior of Mann Bracken, our legal counsel advised that Ronda file for bankruptcy in order to protect our assets. Therefore, on July 14th, Ronda filed for bankruptcy, unaware of what was going on the very same day up in Minnesota.

On July 14, Minnesota Attorney General Lori Swanson filed a complaint against the National Arbitration Forum, alleging that it had concealed financial ties to Mann Bracken and worked behind the scenes with creditors against the interests of both Ronda and I.

From The Wisconsin Law Journal

The complaint mapped out a “complex web” which boiled down to a cozy financial relationship: the arbitration services of NAF and sister organizations as well as the debt collection services of the law firm Mann Bracken and other companies have all been owned by the same New York hedge fund since 2007.

The complaint alleged that the NAF violated state consumer fraud, deceptive trade practices and false advertising statutes through “complex and opaque corporate structuring” that concealed its financial ties and represented itself as a neutral party.

“The ability of a class action litigant to get all of these other court cases undone is limited because of comity. Definitely a federal court will not be able to tell state courts to set aside judgments,” said Rubin, who hopes that other state attorneys general or the Federal Trade Commission (FTC) will step in and order that profits be disgorged.

As a member of YTB, I’m fully aware of complaints filed by Attorney Generals with allegations of consumer fraud and deceptive trade practices. While YTB fought the unfounded and meritless accusations eventually settling the dispute a year later, what do you think big business did when allegations of the same were placed on them?

They folded like a wet noodle.

Five days later, NAF agreed as part of a consent decree that it would cease consumer debt arbitration by July 24.

The ink was barely dry on the settlement when the American Arbitration Association announced on July 22 that it too would be getting out of debt collection arbitration until it can develop standards of practice.

As a result, when the continuance for the traverse came up on the court calendar to oppose the garnishment, Mann Bracken didn’t even show up. The case was dismissed, we got our money back, and our joint bank account was restored.

Unfortunately, because papers and proceedings for bankruptcy were already filed, Ronda may be living with the stain of this gross injustice for years to come. I say may because of what has transpired and the fraud committed against thousands of consumers, the entire proceeding may be able to be expunged. (Not guaranteed, but possible.)

In the meantime, the one last account I have with Bank of America (FIA Card Services) which also has a judgment against me via the NAF and Mann Bracken is still pending. I haven’t decided or been advised as yet how hard I can squeeze to retaliate against this deplorable and fraudulent company. Edelman, Combs, Latturner & Goodwin in Chicago, has already filed the first class action against MBNA/FIA and Mann Bracken, exposing it’s financial ties to the NAF. If successful, it will aside thousands of arbitration awards and judgments entered against Illinois consumers since 2007.

I will also be filing a complaint with the Georgia Governor’s Office of Consumer Affairs and the FTC against Mann Bracken. The state of Georgia is also suing Mann Bracken for FDCPA and for violations of the Georgia Business Practices Act.

I’m fully aware of the bizarre comments and speculation about our personal finances out there on the internet right now. I didn’t feel it necessary to react to a bunch of shallow halfwits who have once again proven how delusional, vindictive, and ignorant they really are.

I was talking with Candi May earlier in the week and she gave me a very interesting quote:

If facts are are on your side discuss the facts. If you don’t have facts plead the law. And if you don’t have the law, drag a dead cat into the room.

Because critics can’t fight the facts about YTB they deflect with personal attacks. One month ago a District Court not only threw out, but severely spanked the perpetrators of a hideous class action lawsuit filed against YTB International. The Judge called the entire document redundant, immaterial, impertinent, and scandalous. Their false illusions of a scam also been compounded with the settlement in California, and the Convention held earlier in the month. In addition, they are now facing the best compensation package available in the travel industry.

Because these punks can’t argue the facts and findings found here, they’ve resorted to these types of personal attacks and finger pointing to discredit or make me simply “go away”. (Cha…RRRRIGHT!)

For the record: The nameless and faceless punks who have been vilifying my wife and family over the internet about this situation owe her an apology. Unfortunately, when you lack class, morals, ethics, and judgment cowards never man up and do what’s right or respectable.

In other words, don’t count on it.

Me…I got what I wanted and that’s exposing a true scam, and telling the truth. Something critics know nothing about.

PS - If you're involved with YTB, sign up for our FREE Newsletter. As a Website Owner or Website Seller, we'll keep you up to date with all the latest news, acquisitions, and developments with YTB.

PPS - Subscribe to the Just Picture It Now RSS feed, (including e-mail) for all the latest posts and updates found right here!

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