ICFE Points Out the Dangers of Universal Default with a
New Online PowerPoint Show Available Free
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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 for financial planners, credit and debt counselors to explain universal default and what happens when a creditor invokes the clause against a borrower to their clients. .

It comes into play when a consumer, who otherwise has excellent credit (and also a high credit score), suddenly has a negative item appear on their credit report. When negatives begin to appear on a report, the 'universal default' clause is often invoked.

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 so-called universal default clause is the low interest rates enjoyed at the outset of a credit relationship with a lender, will soar and, in more than a few cases, they 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 and 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 presentation, please visit the ICFE web site at: www.financial-education-icfe.org or you contact: Paul S. Richard RFC at 619 239 1401.


About the ICFE:

The Institute of Consumer Financial Education (ICFE) was founded in 1982 by the late Loren Dunton (creator of the Certified Financial Planner (CFP) designation).  The ICFE is dedicated to helping consumers of all ages to improve their spending, increase savings and use credit more wisely. 
The ICFE is an award winning, nonprofit, consumer education organization that has helped millions of people through its education programs and Resources. It publishes the Do-It-Yourself Credit File correction Guide, which is updated annually. The ICFE has distributed over one million Credit/Debit Card Warning Labels and Credit/Debit Card Sleeves world wide.

The ICFE became an official partner with the Department of Defense/Financial Readiness Campaign in June of 2004.The ICFE was an active partner in the California Student Debt Resource Awareness Project (CASDRAP) which resulted in a new web site: (studentdebthelp.org).  CASDRAP disbanded in 2010, shortly after the web site project was completed.  In 2011 the ICFE assumed the single sponsorship of the (studentdebthelp.org) web site and is now responsible for its content and operation.

The ICFE is also an on-line help for consumers who spend too much.  ICFE's spending help was featured in PARADE Magazine in the Intelligence Report section. The money helps and tips are from the ICFE's Money Instruction Book, our course in personal finance.

Visit the ICFE's other web sites at: www.financial-education-icfe.org and studentdebthelp.org.  Both sites helps consumers and students with mending spending, learning about the proper use of credit, budget and expense guidelines, how to set up and implement a spending-plan and also how to access financial education courses and how to teach children about money. Other ICFE services include: Ask Mr. G,  a free eNews, and an online resource center for students, parents and educators, plus financial education learning tools and a book store.

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