Archive for August, 2010

September 1, 2010 Credit Card Rules to Help Consumers.

Tuesday, August 31st, 2010

September 1, 2010 Credit Card Rules to Help Consumers.
credit-rating1Three new regulations take effect on Wednesday, September 1, 2010 that will bolster changes made earlier this year.

First, card issuers will be required to offer borrowers a minimum 21-day grace period, during which they won’t have to pay interest on new credit card purchases as long as they pay off their balance by the due date. Previously, grace periods varied and interest could be charged from the date of purchase on new items if the card holder had not paid last month’s bill in full.

The new grace period, which Finance Minister Mr. Flaherty said banks resisted, would cost banks “tens of millions of dollars”. It means purchases made the month after a balance has been carried forward will not be charged interest. Consumers must pay in full by the end of the month to take advantage.

Second, when customers make payments above the minimum amount, they must now be applied to the balance with the highest interest rate first, or proportionally to all transactions. Previously, card issuers could apply payments made above the minimum amount however they saw fit.

Third, credit card statements will have greater transparency and will have to show how long it will take to pay off a balance if only the minimum payments are made. They will also have to provide advance notice of any increases to fixed interest rates.

“People think paying the minimum amount is OK. That’s not OK,” Mr. Flaherty said. “It’s decades … It’s compound interest.”

These regulations follow several changes made in January, which included requirements for information disclosure boxes on statements, the need to obtain customer consent for credit limit increases, an end to over-the-limit fees caused by retailer holds.

Insolvencies decline by 14.4% in June, 2010

Tuesday, August 24th, 2010

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NEWS FLASH! August 24, 2010:

Insolvencies decline by 14.4% in June, 2010.

Consumer Bankruptcies were down by 23.9% in June, 2010 compared with the same month in 2009. (8,241/10,823).

Business Bankruptcies were down by 31.5% in June, 2010 compared with the same month in 2009. (353/515).

Proposals were up by 21.8% in June, 2010 compared with the same month in 2009. (3,751/3,080).

For the 12 months ended June 30, 2010 insolvencies were up by 5.1% compared with the 12 months ended JUne 30, 2009. (151,175/143,883).

The Office of the Superintendent of Bankruptcy comments on the Insolvency statistics are:

The total number of insolvencies (bankruptcies and proposals) in Canada increased by 7.1 percent in June 2010 from the previous month. Bankruptcies increased by 4.3 percent whereas proposals increased by 14.0 percent. Over the last 10 years, the total number of insolvencies filed in the month of June was higher than the total number filed in May three times.

The total number of insolvencies in June 2010 was 14.4 percent lower than the total number of insolvencies in June 2009. Consumer insolvencies have decreased by 13.7 percent while business insolvencies have decreased by 28.9 percent.For the 12-month period ending June 30, 2010, total insolvencies increased by 5.1 percent compared with the 12-month period ending June 30, 2009. This is entirely due to an increase in consumer insolvencies.

Business insolvencies for the 12-month period ending June 30, 2010, fell by 16.7 percent compared with the 12-month period ending June 30, 2009. A reduction in insolvencies in the transportation and warehousing; retail trade; and other services (except public administration) sectors contributed to this decrease.

In June 2010, no Companies’ Creditors Arrangement Act (CCAA) proceedings were filed.

For more information and more detailed analysis please refer to this site.

Bankruptcy Canada Support Group

Saturday, August 21st, 2010

Bankruptcy Support Group

The Bankruptcy Canada Support Group is for people who want to connect with other people who have in the past or are currently experiencing bankruptcy or a proposal. This is the place where people can share advice, get or give help on bankruptcy, proposals, trustees, student loans, getting credit after bankruptcy and related topics.

You’re not alone!! In 2009, more than 115,000 individuals in Canada filed for personal bankruptcy or filed a proposal.

This service is confidential as your email address will NOT be displayed anywhere on your post.

If you have a question you want a trustee in bankruptcy to answer please post it at this site.