The North Carolina Bankruptcy Information Blog

Well, this may come as a surprise: a bank was deliberately charging customers for banking errors they did not make.

Shocker, huh?

Okay, well, maybe that kind of snark is a bit uncalled for. There are plenty of banks out there doing the right thing. But the timing of a California judge’s ruling that Wells Fargo must pay back more than $200 million to customers for egregiously fat-fingering their adding machines when calculating overdraft fees could not have come at a worse time.

News that the economic recovery is slowing (also quite the shock, huh?) and that unemployment continues to punish the nation has only exacerbated the nation’s mood toward the financial industry, largely considered the source of our current economic woes.…

Despite faint signs of recovery in the business world, bankruptcy courts in America are busy handling more personal bankruptcies. Really busy.

In the last month of the first quarter of this year, more individuals filed for bankruptcy than in any month since last 2005. Back then, there was a last minute rush to seek financial protection because of the soon-to-be-enacted Bankruptcy Abuse and Consumer Protection Act, which made bankruptcy laws what they are today.

March saw 35 percent more people file bankruptcy than in February, when a total of 158,141 petitions were filed. Prior to that, October 2009 held the record but was still 19 percent less than March’s total.…

Getting a pay day loan can be ever so tempting. You think to yourself, I only need a “bridge” until my next paycheck; this is a “short term” solution for a “short term” problem; this is an easy “fix”; I can get help without going through the humiliation of a credit check I’m bound to fail. These are the kinds of messages pay day loan companies relay in their advertising, which also goes a long way to generate the impression in you that these companies–unlike the large, impersonal banks who don’t seem to want your business–are run by people who just want to help you.…

We hear plenty about the dangers of gambling addictions. Perhaps this is because the compulsion to gamble doesn’t make sense to a lot of people, and it is always easier to vilify from a distance.  Or maybe it’s that gambling addictions seem dangerous because a gambler could lose everything in an instant.

By comparison, indulging in little purchases here and there seems rather tame. But even little purchases add up, and when you get a rush from spending, chances are you’ll spend more money and spend more frequently to continue to experience that comfort. Just like someone addicted to gambling, you could lose everything; it may not happen in an instant, but little warning signs ignored for years will add up and catch up eventually.…

One of the worst aspects of having debt troubles are the calls from bill collectors. Who doesn’t dread those mean phone calls after you miss a couple of payments?

Recognizing the damage that bill collectors can inflict on people in debt and their families precisely when they are most vulnerable,  Congress passed the Fair Debt Collection Practices Act (FDCPA) in 1977. Many consumers are unaware of their rights under this act and bill collectors count on this fact to maximize their intimidation tactics.  Bill collectors will make you feel like a criminal when in fact, because of their dirty tricks and bully tactics, they are the ones breaking the law.…

Credit is undoubtedly a powerful tool. In fact, it is in most cases vital to make some of the most significant purchases and investments you need and want to make in life, such as buying a car or a home. Using credit for your every-day purchases can also be beneficial, because you can hold on to more of your monthly cash flow and take advantage of “rewards” programs and other incentives credit card companies offer.

While the potential value of credit is indisputable, it can become a trap for the unwary. Overuse or misuse can have serious, long-term consequences. To assess whether you’re headed down a potentially dangerous path in your use of credit, it is helpful to consider your actual purchasing activity and the way you view that activity.…

We have all seen the loan offers in the mail, the banner ads online and even the commercials that air on late-night television. Even though we all scoff initially, knowing what’s in store if we call, your outlook changes quickly when the realization hits that you too are saddled with mounting debt.

But easy-to-get loans with high interest rates and hidden fees are not the solution to your debt problems. All too often, the opportunity to get that money so quickly, certain you will not be the one who gets snagged by the fine print, is sometimes too appealing an opportunity to pass up.…