Deceptive sales practices used by banks to get consumers to rack up more credit card debt
It looks like big banks were using aggressive sales tactics to push more credit card debt to consumers. The allegation is coming from people who actually worked for the banks in their credit card departments.
CNN has the story. According to the report, one former bank employee actually called these sales practices "a great big con."
Basically, the former bank employees are alleging that their bosses were getting them to advance money with hidden fees to the people who were already in financial trouble. Many times, large cash advances were used as down payments on homes, a practice that would usually be inconsistent with the borrowers' disclosures on loan applications and therefore fraudulent.
Federal legislation has been proposed to curb the use of such aggressive marketing and to force the banks to disclose teaser and hidden rates more clearly. Unfortunately, the legislation has not stopped card issuers from pushing some unsuspecting consumers to take on more debt than they can afford without understanding the escalating interest rate.
Perhaps the recent credit crisis will put an end to these tactics without the need for legislation. Until then, if you believe you have been trapped into a credit card deal through aggressive marketing or deceptive sales practices, you may contact our firm to discuss your situation with one of our consumer protection attorneys.
