Corporate Deception & Consumer Debt

As everyone knows, consumer debt, bankruptcy and default are at an all time high in the USA. If you were to take a survey and ask people why this is the case, most of them would say it is because consumers are spending beyond their means and using credit to buy things they can't afford.

Perhaps there is another reason for the consumer debt crisis. Corporate deception is a major cause of consumers' financial troubles. Their usury and deceptive tactics are designed to drive their customers deeper and deeper into debt. Consumers are led into debt traps by deceptive offers and raw deals. Here are just a few examples to illustrate this point.

Fees, Fees, And More Fees: Late fees, overdraft fees, over the limit fees, application fees, policy fees, service charges, convenience fees....... They just keep getting higher and higher! This is one way corporate greed empties everyone's pockets, making it harder for people to pay their bills.

Credit Card Company Dirty Tricks: Credit card companies are always scheming to find ways to increase consumer debt and keep balances as high as possible. In recent years, they raised their late fees and over the limit fees to $30-$40. Now, they not only have a due date, but a due time, too. The payment can arrive on the due date, but if it arrives after a certain time, a late fee is added to the customer's card balance. Years ago, a card was declined if the amount of a purchase was greater than the available credit. Now, the transactions are processed so the company can charge over the limit fees. Credit card companies try to make consumers late by changing the due date all of a sudden (for example, it was due on the 6th of every month and you didn't notice that this month it's due on the 3rd). They make up excuses to raise your interest rates (your credit score went down, your balance is too high, they changed their pricing tiers, etc.). No one ever gets a notice in the mail telling them that their interest rate went down. It's the ever increasing greed of the credit card companies that contributes greatly to the consumer debt crisis. They deliberately make it difficult for people to pay off their balances. It's no wonder there is so much consumer debt and bankruptcy! More on credit card company dirty tricks .

Health Clubs: A health club chain advertises a "pay as you go" membership. People go to the club and sign what they think is a membership agreement. Later they find themselves buried in a mountain of unexpected debt because they didn't realize that the membership agreement they signed was actually a legally binding, three year finance contract. This kind of deception is a major contributor to the current debt crisis. More on health club contracts .

Same As Cash Deals: They call it same as cash, but most consumers don't realize that it is really a deferred interest plan. If you purchase a $1,000 item on a 6 months "same as cash" plan, you have to pay the whole amount within 6 months. If you pay $950 but can't come up with the last $50, you will be charged back interest on the full $1,000. The deceptive "same as cash" deals lead people into unmanageable debt because they aren't concerned about the interest rate when they sign up. The interest rates are usually very high and can be 40% to 50%. Credit on a $1,000 item can cost $500! People don't think of this when they hear the words "same as cash". This kind of dirty trick is yet another example of how corporate greed is fueling the consumer debt crisis. More information on Same As Cash deals.

Insurance Short Rating: This is when consumers get charged for something they didn't even get. If you find a better rate on your car insurance and switch companies before your current policy expires, you are charged a percentage of the amount the company would have received from you if you stayed with them. This is one of many examples of the corporate pickpocketing that creates a financial burden for consumers and makes it harder for them to pay their debts. With so many corporate hands pickpocketing consumers, it's a wonder we're not all bankrupt and living on the streets.

Cheap and Deceptive Employers: In the job ads, "Unlimited Income Potential" means the employer isn't willing to pay a wage or salary. You would have to work on their schedule and on their terms, but they wouldn't have to pay you for your time. Some job ads promising "Unlimited Income Potential" offer a salary, but the employee has to give it all back to them for use of an office, phone, supplies, etc. Earn "up to" $35,000 means you would be lucky if they offered you $17,000.

It costs a lot to pay for housing, food, transportation, phone, utilities, medical care, clothing and other basic necessities. Too many employers are too cheap to pay their employees enough to cover even their most basic needs. Any person who works 40 or more hours per week should be able to heat their home in the winter and put food on the table. If a person who makes $15,000 per year uses a credit card to pay the electric bill, who is to blame? The underpaid worker or the cheap employer? Eventually the underpaid worker will be buried in credit card debt and harassed by collection agencies and then the only alternative will be bankruptcy.

Cheap employers lay off a whole workforce so they can replace them with cheap labor. When people get laid off, they don't have enough money to pay their debts, no matter how much they want to. This is the cheap employers' contribution to the national consumer debt crisis and the vast majority of cheap employers is corporate America.

These examples of the cause of our nation's consumer debt crisis could go on and on. People are tricked into deals they never would have accepted if they understood how the deals really work and they find themselves so deep in debt that they can't dig themselves out. People lose their jobs for no good reason and can't pay their bills. If a person can hardly afford a loaf of bread, how can they be expected to pay for the unanticipated charges that result from corporate greed.

Consumers are often blamed for the debt crisis. It is said that people are spending beyond their means and using too much credit. With all the corporate pickpocketing and con artistry that goes on, doesn't it seem that the main cause of consumer bankruptcy, defaults, and debt is corporate greed?

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