Credit Card Company’s Target “Expired Debt” With New Credit Offers

While credit card debt that is older than seven years expires that hasn’t stopped some credit card company’s from going after that debt in a new and interesting, possibly deceptive way, by offering new credit cards.

In a Wall Street Journal report they reveal that the new credit card offer only goes into effect if the borrower promises to revive their old expired debt.

One New York deli owner told the publication paying off his $400 debt was “totally worth it” because he felt “like dirt” without a credit card.

While company’s such as CompuCredit claim they have the best interest of borrowers in mind it should be noted that debt over seven years old falls off a consumers credit report and has little if marginal effect on a credit score. It’s that latter fact that has consumer watchdog groups up in arms over the practice which usually teams banks with MasterCards.

Along with drudging up expired debt that is already not reporting on a consumers credit report banks are then also able to charge ridiculously high interest rates and other cards fees for “bad borrowers” even as they claim those borrowers are being placed back into a positive status pool of credit recipients.

In a statement about the card a Pennsylvania woman told the Wall Street Journal that the information provided was “legal hogwash” while adding, “I am just grateful I didn’t accept it.”

Do you think the practice of tricking consumers into paying expired debt, even if originally owed in the first place should be outlawed based on the confusing nature of the credit card offers?

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