A close friend of mine has spent the last 18 months working like a dog in the credit card/debt settlement industry. He has given me some interesting insight over the last year as his business has accelerated.
Some notable mentions - BAC has by far been the most egregious at both lending unsecured debt and then settling for the lowest amount on that debt. He tells me that in many cases, BAC will settle for 15 cents on the dollar under this program and consumers are eating it up.
I have SIRI in my car and all I hear are commercials for these settlement companies. Right after TARP and TALF were announced, BAC lead the charge on this aggressive write down policy. WFC has been a close second in his opinion. GE by far gets the award for higest average balance. For the last 3 months he has seen an increase in the AAA paper as insolvent, laid-off proffessionals with 6 figure credit lines are now taking advantage of this program. It sounds like the storm has worked its way up the food chain as the sub prime debtors have already taken advantage of this program. -fwiw
Some notable mentions - BAC has by far been the most egregious at both lending unsecured debt and then settling for the lowest amount on that debt. He tells me that in many cases, BAC will settle for 15 cents on the dollar under this program and consumers are eating it up.
I have SIRI in my car and all I hear are commercials for these settlement companies. Right after TARP and TALF were announced, BAC lead the charge on this aggressive write down policy. WFC has been a close second in his opinion. GE by far gets the award for higest average balance. For the last 3 months he has seen an increase in the AAA paper as insolvent, laid-off proffessionals with 6 figure credit lines are now taking advantage of this program. It sounds like the storm has worked its way up the food chain as the sub prime debtors have already taken advantage of this program. -fwiw
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