Credit Card Forgiveness Plan

- The plan's purpose was to ease credit card debt
- Biggest credit card lenders include Bank of America, American Express and Citigroup
- Proposal made by Consumer federation of America and the Financial Services Roundtable
- Comptroller of the Currency rejected the proposal in November 2008MSNBC: Regulators Deny Credit Card Forgiveness Plan (November 12, 2009)
- Agency officials objected to deferring losses over several years
- In the U.S., there is approximately $900 billion worth of consumer credit card debtMSNBC: Regulators Deny Credit Card Forgiveness Plan (November 12, 2009)

The Credit card forgiveness plan was a program proposed by banks and consumer advocates that would ease the credit card debt of borrowers to banks. The proposed plan included a program that would let borrowers have as much as 40% of their debt forgiven. The Office of the Comptroller of the Currency denied the credit card forgiveness plan in November 2008.MSNBC: Regulators Deny Credit Card Forgiveness Plan (November 12, 2009)
In 2009, in light of the economic crisis in the U.S., individual credit card companies were reportedly offering partial debt forgiveness on a case-by-case basis.ABC News: Credit Card Companies Forgive Some Debt (January 19, 2009)
Proposed Plan

The proposed plan would have aided consumers who didn't qualify for current repayment plans. The proposal called for as much as 40 percent of debt to be "forgiven" and the remaining balance to paid over several years. The deal also benefits banks who are losing tens of billions of dollars on unpaid loans from credit card bills.
The Consumer Federation of America and the Financial Services Roundtable proposed the plan to the Treasury Department Agency. The issue has come to the forefront in light of the rising jobless rate and the financial struggles of Americans involved in the mortgage crisis.Washington Post: Banks asking for credit card debt forgiveness(October 30, 2008)
Bank Regulators Deny Plan

On November 12, 2008, the office of the Comptroller of the Currency rejected the credit card forgiveness plan. Agency officials said that the government did not agree with any plan which would propose to defer losses for several years. According to Federal Reserve figures, Americans are in credit card debt up to $900 billion dollars.Yahoo! News: Regulators nix credit card debt forgiveness plan (November 12, 2008)