Readers in Kentucky may be interested in a recent article that concerns credit card issuers and the agreements that card holders sign. The article asserts that there are a number of provisions in the contracts that may be surprising for the individuals who are signing them.
When individuals sign up for credit cards, the contract that they sign outlines their relationship with the company issuing the debt. In a large number of credit agreements, companies include a specific clause allowing them to seize the purchased property in case the components of the original financial agreement are not met. In reality, the application of the clause greatly depends on the value of the item purchased and the level of difficulty to retrieve it back from the purchaser. While the issuer may be unlikely to act under the provisions of clause, it can be used as a scare tactic to force the purchaser into another financial agreement in order to retrieve a settlement check.
It is important that the consumers become familiar with the terms and requirements of the company offering any credit card. Some of the terms may include wording that prevents a customer from taking the card issuer to court in case a dispute arises. These provisions often require the dispute to be settled through arbitration, and they often keep card holders from becoming part of a class-action lawsuit should a dispute arise.
While the government has taken steps to reduce the complexity of credit card agreements, many individuals may become surprised some of the obligations the contracts force upon them. Variable rates and changing fees may make it difficult for many individuals to maintain payments. In cases where the debt becomes overburdens and the card holder faces harassment from the issuer, filing bankruptcy may be an option for relief.
Source: FOX Business, “Surprise! Many Credit Card Agreements Allow Repossession”, Fred O. Williams, March 05, 2014