Castle Blog

Too Much Money For Forgiveness

The Comptroller of the Currency just made your life a lot harder.

Well, maybe not harder. He didn't actually ADD to your debt. He just killed a plan for you to be forgiven 40% of it.

A group of consmer advocacy groups and banks floated a plan to allow people who could not meet the terms of payment plans to have 40% of their debt forgiven.

The reason that they are throwing these plans out there is because too many people are defaulting on their credit card debt.
And with the economy currently in the state that it is in, credit card companies and banks are feeling the pain just like regular Americans.

Unfortunately for us..."the agency 'does not consider any plan that defers the timely recognition of loss as prudent, and any such proposal cannot be viewed favorably by us,' Timothy Long, senior deputy comptroller for bank supervision policy, said in a letter to the two groups dated Monday and made public Wednesday."

It is a rare thing where banks and especially credit card companies make an effort to actually help their debtors instead of burying them. It is a shame that the Comptroller of the Currency wouldn't allow them to do it.

If you or a loved one in the St. Louis area is considering filing for bankruptcy, contact the Castle Law Office for a free legal consultation today.