We've been talking a lot about a surge in write-offs related to soured consumer card debts. Indeed, it is happening, but banks have wisely started to see that delinquent or near delinquent debts may not be an all or nothing proposition. They seem to be taking a cue from the mortgage modification effort and opening talks with customers.

The Washington Post reports more lenders are "looking to restructure credit card accounts by lowering interest rates or minimum monthly payments for a specific period of time, waiving fees, or settling the debt by accepting less than what is owed." Bank of America aims to modify credit card debts for 1.2 million customers, up from 1 million last year. This is a move that can be applauded by consumers and lenders. Banks, however, are reluctant to talk about this as they fear they will open the floodgates. 

For more:
- here's the article

Related Articles:
Credit card debt startgin to creak
Credit card regs to hit IT budgets
Banks cutting deals on consumer card debts
Credit-card reform for students