WORLD> America
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WORLD> America
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Credit card insiders tell of deceptive practices
(Agencies)
Updated: 2008-09-25 14:06 Consumer indebtedness is a major problem in the United States, one that is becoming worse amid a financial crisis that threatens the economy with a recession. Americans had $969.9 million in outstanding credit card debt as of July, according to Federal Reserve data. A spokeswoman for Bank of America said the bank does not seek to extend credit to customers who cannot pay. "By the way, if you're talking about former MBNA employees, their employment would date back many years ago prior to the merger with Bank of America," Riess said. Bank of America completed its purchase of MBNA in January 2006. Colombo said in one instance she was disciplined for not being aggressive enough in "pushing product" to a 90-year-old man who could barely hear over the phone. Jerry Young, another MBNA rep, said he was asked to intensely target customers in such a way as to leave them little choice but to stretch their finances, to the company's profit. Travis Plunkett, legislative director for the Consumer Federation of America, said the behavior continues at Bank of America but current employees are too frightened to speak out on the record. "We can assure you that these same practices are being done up to the present at Bank of America," said Plunkett. Colombo said another tactic employed by MBNA was to hide the existence of the Soldiers and Sailors Act, which gives spouses of troops on active military duty the right to a lower interest rate. "We were not allowed to offer that information to them," the former service representative said. |
