Class Action Filed Against Extended Car Warranty Schemers

If you recently received information in the mail regarding extended warranty information for your vehicle, make sure that you read the fine print. A class action complaint was recently filed in the U.S. District Court by an Illinois consumer, individually and on behalf of other customers nationwide who have purchased so-called "extended warranty" vehicle service contracts.

According to www.bankrate.com, the complaint details the ongoing, wrongful scheme of the company in question to obtain hidden interest charges and penalties from consumers who cancel their service contracts before the term of coverage expires. The complaint charges that the defendants make a practice of heavily penalizing car owners with large interest charges and marketing fees that are not spelled out in their contracts. This practice is in violation of the Federal Truth in Lending Act and the Illinois Consumer Fraud Act. If you receive an extended warranty offer, you may want to do some research before making a commitment to that company.

Credit Answers specializes in debt management, credit card debt settlement, debt negotiation and bankruptcy alternatives. Credit Answers team of experts work to enable a new and fresh financial start for individuals with debt problems. We realize the importance of money in people's lives and also the accompanied strain that debt can cause. Our team has helped thousands of clients across the nation.

Credit Card Companies May Raise Annual Fee

Some credit card companies may also begin resetting annual fee policies for cardholders prior to the CARD Act law going into effect. According to creditcards.com, the Credit CARD Act bill does not include any direct comment on annual fee setting.

Annual fees first emerged from certain credit issuers under the term "membership fees." Initially, these fees were justified and were used by companies to profit since holders of some cards pay balances in full each month and carry no interest.

As explained by some financial industry professionals, creditors are scrambling before the deadline because consumer credit scores have decreased and the cost of providing credit has increased.

According to creditcards.com, Mail Monitor, a mail tracking service, reported that in the first quarter of 2009, Americans received 372.4 million card offers. According to the report, approximately 27 percent of those offers carried a fee.

At Credit Answers we strive to educate our clients on what is happening in the industry and ways to help save money in these trying financial times.