It is my understanding that folks with balances are defaulting after rates are driven to 30% ++. I believe it is a scam run by banks to either force default so they can claim TARP money, or collect massive interest and make high profit if you stay on board with it. I believe the correct course of action would be to close accounts of credit rating suspects but leave the interest the same. What are defaults running right now? 15% or so on credit card debt I believe? but I would not be surprised if the highest percentage of non payers carry a balance and have been caught in the trap as it closed.