The Federal Reserve Board on Friday proposed rules to prohibit unfair practices regarding credit cards and overdraft services that would, among other provisions, protect consumers from unexpected increases in the rate charged on pre-existing credit card balances.

The rules, proposed for public comment under the Federal Trade Commission Act (FTC Act), also would forbid banks from imposing interest charges using the “two-cycle” billing method, would require that consumers receive a reasonable amount of time to make their credit card payments, and would prohibit the use of payment allocation methods that unfairly maximize interest charges. They also include protections for consumers that use overdraft services offered by their bank.

If you would like to comment, follow this link, and scroll about two-thirds of the way down and look for the “submit comments” link. Most of the comments so far support the changes, and offer a glimpse at consumer’s frustration with credit card lenders.

In addition to the 19,000 industry form letters, you can view comments, though there are an awful of of them. Don’t let that stop you from adding your two cents, though.

The Fed needs to hear from real people, instead of industry lobbyists.

I am 63 and on Social Security Disability.  A collection agency sent me paperwork to go to court, or so it appeared.  There was no court.  Then 2 weeks later they got a judgement.   They are well aware that I am on Social Security Disability & went for the judgement anyway.  What are my rights?  This has taken a toll on my mental & physical health.

Here are my thoughts: Federal law is clear that except in very limited circumstances (certain child support, tax, or Social Security related debts), creditors may not garnish an individual’s Social Security money. This means that the creditor cannot directly serve a notice of garnishment on the Social Security Administration, nor may a judgment creditor like a credit card company attach a debtor’s bank account to the extent that that bank account contains funds directly traceable to the protected Social Security money.

Obviously it can be difficult to untangle “co-mingled” funds so I generally tell my Georgia Social Security disability clients to keep their Social Security money in a separate account.  Interestingly, some states are now protecting non-Social Security money in co-mingled accounts - read my Debt Law Network colleague Peter Orville discusses a proposed New York consumer protection law that protects up to $2,500 of funds in a bank account that also contains Social Security money.

Regardless of the protection offered in your state, the protection extended to Social Security money does not mean that a creditor may not sue a disability claimant, obtain its judgment and wait for the day when the claimant/debtor obtains property, loses disability benefits or obtains another source of money.

If your account contains protected money, you should notify your bank in writing that any attempted seizure of your bank account is improper.  Similarly you should notify the collection lawyer that he will be held accountable if he improperly grabs your money.

I consistently see that many people today take too many things for granted. We have become a nation of greed and instant gratification which has fed the great credit monster and now may lead to our economic demise, albeit it may be temporary. As more people are being laid off the greater the job pool market will be. This means that employers will have more people to choose from when hiring and this may actually encourage employers to get rid of dead weight.

So let’s pose a hypothetical situation. If you had to hire someone for your business would you rather hire someone who: A) shows up to work on time, does their job each and every day, looks for ways to assist their employer and is grateful for the opportunity to work; or B) shows up to work with attitude of entitlement, texts on their phone all day, instant messages on Myspace or Facebook and does not have any idea that work starts at the same time everyday?

Some of you are laughing but those of you who are employers probably are not. Scenario B is the current mindset of many workers at the moment and these employees think that employers will not terminate for such “normal” behavior. My hope is that this entire country receives a wake up call. We have gone from a strong, educated and independent nation to a credit addicted, naive, self centered cog in the wheel of the credit industry.

It is time to take our country back from the clutches and control of the credit industry. It is time to gain power through knowledge to regain control of our lives. Finally, it is time to take pride in ourselves, our country and our families. I do not know about you but what I want in my wallet is NOT the blue holographic plastic. I want good old fashion all American greenbacks earned by hard work and perseverance.

If you are lucky enough to have a job at the moment don’t take it for granted. Be strong, be prepared and forewarned so that you may survive the tough times ahead.

Written by Rachel Lynn Foley.

The appeals court made it clear that a mistake is only made in good faith, with respect to a strict liability statute such as the FDCPA, when care is taken in advance to avoid it.

“If the bona fide error defense is to have any meaning in the context of a strict liability statute, then a showing of “procedures reasonably adapted to avoid any such error” must require more than a mere assertion to that effect. The procedures themselves must be explained, along with the manner in which they were adapted to avoid the error. See Wilhelm, 519 F.3d at 421. Only then is the mistake entitled to be treated as one made in good faith.

Because NCS submitted only a conclusory declaration stating that it maintained procedures, we hold that it failed to establish a bona fide error defense under the FDCPA.” Wilhelm v. Credico, Inc., 519 F.3d 416, 421 (8th Cir. 2008).

This decision may be helpful in the context of other strict liability statutes when the creditor claims it just “made a mistake” as is so often claimed when they are caught in the act.

If you are in debt and struggling, you might want to speak to an experienced consumer bankruptcy attorney to see if anything can be done to help you eliminate, reduce or reorganize your debts so that you can meet your monthly obligations. Many families are finding that they are not in a position to repay debts since the money that had been used to pay down debt is now going to cover rising gas and food prices.

If there is no money to pay towards your debts then Chapter 7 bankruptcy may be a good option. For others, Chapter 13 bankruptcy or a debt management plan may help reorganize debts into an affordable repayment plan. Any good bankruptcy lawyer will be able to review ALL your options so you can compare bankruptcy and non-bankruptcy options.

Everyone is wincing when they fill up their tanks, but here are a few painless money saving tips that anyone can do that can help you use less gas and may help you stay out of debt:

DRIVE SLOWER: I have read studies that show that you have a loss of fuel economy of up to 10% if you drive 65 mph, and up to 17% if you drive 70 mph instead of 55 mph. Remember when President Carter lowered the speed limits to help conserve gas? It works, but I appreciate being allowed the choice to drive slower rather than being forced to by the government. In a typical commute slowing down usually means that the addition of only a few minutes but can add up to substantial savings at the pump. Even on longer trips, a later arrival time isn’t a big trade off for higher gas mileage.

ACCELERATE SLOWLY AND DRIVE A STEADY SPEED: In city traffic, you will find that if you accelerate slowly and drive the speed limit, you will not only save gas you may catch up with the cars speeding around you at every light. This is easier on the highways since you can use your cruise control and you don’t have stop and go traffic.

AVOID CONGESTION: Idle time is wasted gas. Try to drive to and from work at times when traffic isn’t at it’s heaviest. Many employers are allowing flex schedules to allow employees to come in earlier/later than the traditional 9-5 workday. Not only will you use less gas, you may find that leaving earlier or later can significantly shorten the time you spend in your car, and in aggravating traffic snarls.

REDUCE THE FREQUENCY OF SHORT TRIPS AND PLAN AHEAD: You will get better gas mileage from a properly warmed up engine. Experts suggest combining errands, and driving to the furtherest point first to give your car a chance to warm up. Stop at your other destinations along the way home. This common sense approach involves asking yourself if you need to do something right away, or can you wait to combine the trip with another errand.

REDUCE THE USE OF A/C: Air conditioning run at maximum setting reduces fuel economy.

REGULARLY SERVICE YOUR VEHICLE: Proper servicing of the engine and tires have big impacts on your gasoline usage. Low tire pressure increases fuel usage so make sure that you check your tires regularly to make sure they are properly inflated. Change your oil regularly and ask your mechanic to be sure to use a good quality oil and to check to be sure that the correct type of oil is being used.

By Susanne Robicsek, NC Bankruptcy Lawyer

For more information about gas saving tips read: INCREASING GAS ECONOMY