ICFE Points Out the Dangers of Universal Default
with a New Online PowerPoint Show Available Free

San Diego, CA. - Universal default, a dangerous adverse action against a borrower, is still largely an unknown, inconvenient fact among consumers. Universal default is a clause included within most credit card offers and agreements which says if you are late with any other creditor; you are considered late with them all. The ICFE was the first nonprofit group to speak out against universal default and its negative affects on consumer credit scores in October 2003.

The San Diego based, nonprofit, Institute of Consumer Financial Education (ICFE) is pleased to make available on-line, a free 26 slide PowerPoint presentation, designed to help explain universal default and what happens when a creditor invokes the clause against a borrower.

The ICFE's free online PowerPoint Show explains how universal default works, show examples of its wording in credit card agreements and provides some interesting facts and figures about the institutions which apply it to their delinquent accounts. For instance, more than one-third of major credit card issuers now say they act on these clauses regularly. A recent survey found that a staggering 44 percent of credit card issuers said they apply the rule to customers, even if they had no late payments on their own card.

The result of the universal default clause is; the low interest rates enjoyed at the outset will soar and may double or triple. Creditors and lenders are now more closely monitoring credit reports of their current clients for signs of trouble, especially with other lenders. 43% of creditors who practice universal default would enforce it if they deemed that a cardholder had too much overall debt. 33% would do it if they thought the consumer had too much available credit.

Missing or being later on a payment, even to the phone company, a book or music club can be very costly if it makes it on to your credit report. It is now much more than a $30 or $40 late payment fee, because not only does it trigger higher fees and interest charges, it will also lower credit scores.

For more information about the ICFE's free online Universal Default presentation, please visit the ICFE web site at: ICFE.info or you may contact: Paul Richard RFC at 619.239.1401