What is a credit card hardship program?

  • Blog
  • What is a credit card hardship program?
Contact Us
1
2
3
22 Apr, 2024
Daniel Cohen
11 min
984
what is a credit card hardship program

It can help you out in tough times

Benefits of credit card hardship programs
Cons of credit card hardship programs

A credit card hardship program can keep your credit card payments going during hard times.

Life gets hard sometimes. You could lose your job, suffer a pay cut, contract a serious illness, go through divorce, have a family emergency, suffer a natural disaster, or face any manner of financial setback. Such incidents can make it challenging for you to meet your regular financial obligations, such as paying your monthly credit card bills.

If you ever find yourself in such a situation, don’t despair; there’s light at the end of the tunnel. Try having a conversation with your credit card company to find out if they can help. They might actually want to.

This post discusses credit card hardship programs - one of the ways in which credit card companies aid their cardholders during tough times.

A credit card hardship program is a payment plan designed to support you in times of financial struggle. It helps you avoid defaulting and falling behind on your monthly card payments. Credit card hardship programs involve negotiations with your credit card issuers if they offer such a program. They offer relief that can make it easier for you to get back on your feet after anything from a personal emergency to a global one — credit card hardship programs proved extremely helpful to many at the peak of the pandemic.

A credit card hardship program offers a variety of benefits, including:

  • Reduced interest rates
  • Waived fees
  • Deference of card payments
  • Temporary reductions in your annual percentage rate
  • Installment plans to pay off the balance over time

Benefits of credit card hardship programs

Credit card hardship programs offer immense advantages to those going through a financial rough patch. Some benefits of credit card hardship programs include:

  • No damage to your credit history due to unpaid monthly credit card bills
  • They provide relief, allowing you to attend to other financial obligations such as utilities, rent etc.

Cons of credit card hardship programs

As helpful as credit card hardship programs are, they have their downsides, too. Some notable issues include:

  • Your balance on the card usually continues to accrue interest even if it is reduced.
  • It could lead your credit card issuer to reduce your card limit or close your account.
  • Your credit score could drop if that happens. This is because a reduced credit limit or removed credit profile increases your credit utilization ratio, as it reduces the length of your history.

Credit card hardship programs are necessary lifelines for those in financial distress. Just make sure you understand the implications from the start and make the most of it. If you need expert tips on what to do to boost your credit, contact us.

Previous ArticlesNext Articles
imageDaniel Cohen is the Founding Partner of Consumer Attorneys
About the lawyer
Daniel Cohen
See more post

Daniel Cohen is the Founder of Consumer Attorneys. Daniel manages the firm’s branding, marketing, client intake and business development efforts. Since 2017, he is a member of the National Association of Consumer Advocates and the National Consumer Law Center. Mr. Cohen is a nationally-recognized practitioner of consumer protection law. He has a we... Read more

categories
All News
Practice area
Credit Reporting Errors Attorneys
Popular Articles
Judicial gavel on the table because victim have been wrongly sent to collections
Can I Sue For False Debt Collection?
bill sent to wrong address now in collections
A bill was sent to the wrong address and is now in collections: What do I do?
if Certegy does not correct errors on your report, you have the right to sue
Certegy Check Services Declined Check
alarm clock on the dark background
How Long Does It Take to Dispute a Credit Report?
how to add utility bills to your credit report
How to add rent and utilities to your credit report
Contact Us
+1 877-615-1725[email protected]
INVESTIGATIVE ENGAGEMENT AGREEMENT

You, (“Client,” “you”), and Consumer Attorneys PLLC (“CA” or “we”), located at 72-47 139th street Flushing, NY 11367 (“CA”) , hereby enter into this limited scope retainer agreement whereby you agree to grant CA the exclusive authority to investigate your potential consumer law claim(s), including but not limited to potential violations of the Fair Credit Reporting Act (“FCRA”), Fair Debt Collection Practices Act (“FDCPA”), Equal Credit Opportunity Act (“ECOA”), Electronic Funds Transfer Act “EFTA”), Fair Credit Billing Act (“FCPA”), and/or the Telephone Consumer Protection Act (TCPA”) (collectively referenced as “consumer protection statutes”). 1Please read carefully before signing:

Authorization

You authorize CA to investigate your potential consumer law claim(s) under state and federal consumer protection statutes. You authorize CA to contact third parties on your behalf for the limited purpose of investigating your potential consumer law claims. “Third parties” include but are not limited to consumer reporting agencies, creditors, lenders, debt collectors, rental agencies, employers, courts, and law enforcement agencies.

CA’s Exclusive Investigative Period

CA agrees to investigate your potential consumer law claims in good faith. By signing this agreement, you agree to give CA the exclusive right to investigate your potential consumer law claim(s) for the next 180 days (“Exclusive Investigative Period”). For the duration of the Exclusive Investigative Period, you agree that you will not communicate with any other law firm or legal representative about your potential consumer law claim(s). You agree to forgo any previously scheduled consultation or case review until CA’s Exclusive Investigative Period concludes.

Termination of Exclusive Investigation Period

CA agrees that the Exclusive Investigative Period may not extend beyond 180 days without your prior written consent.

At any time between the date of this agreement and the expiration of CA’s Exclusive Investigative Period, CA may inform you of the outcome of its investigation. If CA’s investigation reveals that you have an actional consumer law claim, CA may ask you to sign a formal retainer agreement. If CA’s investigation does not reveal an actionable consumer law claim, you will receive an e-mail that states CA will not represent you in any further pursuit of your potential claim(s).

The relationship between you and CA automatically terminates at 5pm on the 180th day of the Exclusive Investigative Period or your receipt of CA’s written notice to decline representation, whichever comes sooner. At the conclusion of the Exclusive Investigative Period or upon receipt of CA’s written declination of representation, you are permitted to seek alternative legal counsel without penalty.

Nothing in this agreement should be construed as a promise or guarantee that CA will represent you in a consumer lawsuit at any point in time. CA reserves the right to decline to represent you for any reason permitted by relevant laws and ethical rules.

Your Involvement and Promises to us

You agree to meaningfully participate and cooperate in CA’s investigation of your potential consumer law claim(s). You agree to immediately inform CA if your mailing address, e-mail address, or phone number changes at any point during the Exclusive Investigative Period.
You agree to provide all relevant information, communications, documents, materials, and all other similar instruments to CA and its representatives during the Exclusive Investigative Period. You understand that your failure to provide all relevant information, communications, documents, and materials to CA during the Exclusive Investigative Period may hinder, delay or otherwise frustrate CA’s investigation of your potential consumer law claim(s).

You agree, under penalty of perjury, to provide complete, accurate, and truthful information to CA. All documents and communications, oral or written, past or future, provided to CA during the Exclusive Investigative Period and anytime thereafter are presumed by CA to be true, complete, and accurate.

Fees and Costs Incurred During Exclusive Investigative Period

CA agrees that you will not incur any out-of-pocket fees or costs during CA’s Exclusive Investigative Period. However, if CA agrees to represent you in a consumer lawsuit, CA may recover the fees and costs incurred during the Exclusive Investigative Period from the Defendant pursuant to a future settlement or judgment.

You agree that CA has a right to place a lien on any future monetary recovery obtained by client related to the claims identified during CA’s Exclusive Investigative Period or as a result of CA’s investigative efforts. If you refuse to cooperate with CA in the formal pursuit of the consumer law claim(s) it identifies during or after the Exclusive Investigative Period, you agree that CA has the right to recover the fees and costs it incurred while investigating your potential consumer law claim(s).

Authorization to Use Your Electronic Signature

CA will send you any and all documents that require your signature. You authorize CA to affix your electronic signature to requests, disclosures, or other forms that CA deems reasonably necessary to the investigation of your potential consumer law claim(s) upon receipt of your approval or after the 7th day after the document was sent to you, whichever comes first. Your electronic signature will be used on any and all other subsequent documents that will need signature, affirmation, acknowledgment, or any other forms of authentication in reference to this matter under the above referenced procedure.

1You also agree to give CA the exclusive authority to investigate potential violations of state-specific consumer protection statutes.

All Rights Reserved. Without Prejudice. CONSUMER ATTORNEYS

FORM # INV2024CA119

I have read and agree to the Privacy Policy, Investigative Retainer
Supported file formats:
Free Case Review
Zero Costs and Fees to You.
You pay nothing. The law makes them pay.
Get started
Contact Us
Head Office NY
68-29 Main Street, Flushing NY 11367
+1 877-615-1725
[email protected]
Our social media
Our rating services
TrustpilotGoogle Business