Friday, November 4, 2011

Why is unsecured debt so easily converted to secured debt in a court of law?

Why do American courts allow an unsecured debt to be converted to a secured debt? This seems pathologically wrong. This also seems to make the credit card luring process riskless (other than credit card fraud). 

So why are credit card companies charging higher interest rates if they can convert an unsecured credit card debt to a secured debt?

If the debtor agrees to pay the debt once they start working and they put their intent in writing, why does the court feel compelled to step in and convert the unsecured debt to a secured debt and in the process put the debtor on the path to financial suicide?

When constructing an agreement with a debt collector, the debt collector won't even give 30 days for the agreement, they only give until the end of the month, so sometimes the short turnaround time is used to claim that the debtor reneged on terms. This is just appalling.