B is for Beware of these Credit Card Offers
Beware of those credit card offers that look like small business cards and are anything but. There have been a slew of them in the past few months. I’ve received them myself. They look intriguing – lots of points for purchases but they have hidden fees and are not covered by the Credit Card Accountability and Responsibility and Disclosure Act of 2009 because they are “professional” cards.
The Wall Street Journal Weekend Investor, August 28, 2011, warns that: While the Card Act bars issuers from raising rates on existing balances unless a cardholder is at least 60 days late with a payment, there isn’t any such prohibition on the Ink from Chase card. The card agreement says Chase is free to implement a default rate of 29.99% if a customer is late by just one day on a payment. And holders of Capital One Financial’s Business Platinum Card, meanwhile, can see their low introductory interest rates spike if they are just three days late with payment twice in a 12-month period, far less than the 60-day notice period required under the Card Act.
The are Personally Guaranteed
Even more distressing is the small business owner that applies for one of these cards without realizing that they are personally guaranteeing the card. So if the business goes under the owner will still owe on the credit. A close reading of the application indicates that rather than true business cards these are an attempt by the big banks to have the best of both worlds — Business card regulations with few restrictions and a personal guarantee to sweeten the pot.
Check out Jay Fleischman’s post where B is for Banking. He discusses the unbanked and how having an account makes your finances tidier.
More Bankruptcy B’s:
- Bad Faith Filing by Miami Bankruptcy Attorney, Dorota Trzeciecka
- Bailout by Jacksonville Bankruptcy Attorney, Monica D. Shepard
- Bank Account by Daniel J. Winter, Chicago Bankruptcy Attorney
- Bank Account Levies by New York Lawyer Lurie Favors
- Bank Account Levy by Philadelphia Bankruptcy Lawyer, Raymond Kempinski
- Bank Tips by Wisconsin Bankruptcy Lawyer, Bret Nason
- Bankruptcy by Taylor Michigan Bankruptcy Lawyer, Christopher McAvoy
- Bankruptcy Abuse and Prevention Act of 2005 by Livonia Michigan Bankruptcy Attorney, Peter Behrmann
- Bankruptcy Estate by Metro Richmond Consumer and Bankruptcy Attorney, Mitchell Goldstein
- Bankruptcy Mill by Chicago Bankruptcy Attorney, Kyle A. Lindsey
- Bankruptcy Petition Preparers by Los Angeles Bankruptcy Law Monitor, Christine Wilton
- Bankruptcy Petition Preparers by Colorado Springs Bankruptcy Attorney Bob Doig
- Bankruptcy Timeline by Pittsburgh Bankruptcy Attorney Shawn N. Wright
- Bar Date by Ormond Beach Bankruptcy Attorney, Lewis Roberts
- Benefits of Chapter 13 by Vermont-New Hampshire Bankruptcy Lawyer, Michelle Kainen
- Best Efforts Test by St. Louis, Missouri Bankruptcy Attorney, Nancy Martin
- Best Interest of the Creditors by Honolulu Bankruptcy Attorney, Stuart Ing
- Bifurcate by Tuscaloosa and Birmingham Bankruptcy Lawyer, Melinda Murphy Dionne
- Budget by Columbus, Ohio Bankruptcy Attorney, Athena Inemboildis
- Budget by Birmingham Bankruptcy Attorney, Elizabeth Johnson
- Business by Northern California Bankruptcy Lawyer, Cathy Moran
- Business by Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell
- Businesses and Business Debt by Newnan Georgia Bankruptcy Lawyer, Rick Palmer
- Business & Individuals by Philadelphia Suburban Bankruptcy Lawyer, Chris Carr
- Business Bankruptcy by Los Angeles Bankruptcy Blog, Mark J. Markus
- Buy Low and Sell High by Cleveland Area Bankruptcy Lawyer, Bill Balena