Low Interest Credit Cards

If you’ve ever defaulted on a loan or credit card, you have likely had creditors knocking on your door. If you fail to pay what you owe, many creditors hire private debt collection agencies to chase after you and try to recoup some of that cash, even if it’s just pennies on the dollar. But what happens if you fail to pay your city’s water or trash bill?

The practice of hiring debt collectors was primarily reserved for private companies, but things have changed in this shaky economic climate. Several city governments are now relying on private debt collectors to gather up funds from residents for unpaid utility bills, according to CNN Money.

Pittston, a small town in Pennsylvania with a population of just over 8,000, is one example. Residents currently owe the city about $250,000 in garbage fees. Rather than letting trash pile up around town, the city cleaned up anyway. Read more…

Photo by HikingArtist.com

How can a company find customers willing to pay almost $400 in fees for a credit card that will only finance 30% of purchases from a single catalog? It’s hard to imagine, but the FTC seems to have caught one dead in its tracks.

According to a press release issued on November 3rd, a formal complaint was issued in federal court alleging that Low Pay, Inc. used deceptive mailers to market its card to consumers with credit problems, charging them hundreds of dollars in up-front fees and often reneging on its refund policy. In response, Low Pay has apparently agreed to pull the plug on its questionable practices while they battle it out with the FTC.

The actual complaint explains in more detail how the FTC believes Low Pay pulled this whole thing off. H

Read more…