Regulators deny credit card forgiveness plan

[MidnightVoice]

http://www.msnbc.msn.com/id/27683987/

Federal bank regulators have rejected a request by banks and consumer advocates for a program to let lenders forgive huge portions of credit card debt.

The Office of the Comptroller of the Currency rejected the request for a special program that would allow as much as 40 percent of credit card debt to be forgiven for consumers who don’t qualify for existing repayment plans.

An unusual alliance of financial industry interests and consumer advocates, represented by the Financial Services Roundtable and the Consumer Federation of America, made the request to the Treasury Department agency on Oct. 29. It demonstrated the urgency of the situation in a deepening economic crisis: consumers — even those with strong credit records — defaulting at high levels on their credit cards, while banks battered by the credit crisis bleed tens of billions from the losses.

[Anonymous]

Right. Because THEY need the help. But we don't.

Reminds me of all the men on the Titanic, who started pushing women & children away from the lifeboats to save themselves.

See, this is how it works: Banks get GIANT bailouts from gov. Banks sit on the money they're given, instead of using it to keep ops running normally. Then, banks knuckle down on consumers even moreso than in the past, denying them the goodwill they themselves had to grovel for..  Banks turn a GIANT profit, between the money they're hoarding from gov & the money they're hounding consumers for, they come out looking like kings.

[marty56]

If this did happen, what would your credit report show.  Is it fair that people who had 40% of their debt eliminated should also show the accounts as being paid satisfactory as opposed to being settled for less?