Posts Tagged With 'Credit Card'

Credit card regulations to be finalized soon

Posted by Anthony Jackson at Mar 27, 2010 | No Comments »

Any credit cardholder who has ever wished that their provider could be held to stricter standards may soon have their desires fulfilled.

According to MarketWatch, new regulations on credit card industry practices – which are aimed at protecting consumers from some of the more aggressive behavior that providers engage in – are set to be finalized in the coming months.

For example, have you ever been frustrated because your payments are applied to a lower-interest charge first (such as a balance transfer) instead of to higher-interest purchases?

Well, the new legislation denies companies the right to do this. Additional proposals include preventing firms from raising the interest rate on an existing balance – except in particular circumstances – and ensuring that customers have a reasonable amount of time to make payments.

The credit card companies are, needless to say, not thrilled about changing their ways. Read more…

Tags: Card Credit Card

Report: Bank credit card debt rising

Posted by Anthony Jackson at Mar 27, 2010 | No Comments »

New findings add to a grim financial picture: Americans are continuing to add to their overall bank credit card debt – and an increasing number of consumers are struggling to pay their bills.

That is the finding of a new report by TransUnion, which indicated that the total amount of consumer debt held on bank-issued cards in the third quarter rose by 6 percent compared with the same period last year.

Meanwhile, the study also shows that delinquency is growing more common. Read more…

Tags: Card Debt Credit Card Credit Card Debt Debt

Sweeping changes to credit card rules approved

Posted by Anthony Jackson at Mar 27, 2010 | No Comments »

Anyone who has ever felt taken advantage of by a seemingly sudden change to their credit card terms may have cause for celebration.

On Thursday, the Federal Reserve approved new rules for the credit card industry which – among other things – mandates that providers must give customers 45 days’ notice before changing the terms of their account.

The regulations – which take effect in July 2010 – also prohibit credit card companies increasing the interest rate on an existing balance – only on future purchases or cash advances.

And among the other changes is the stipulation that providers apply any payment that is greater than the minimum to the highest-rate balance. Read more…

Tags: Approved Credit Card

Fewer credit card offers in people’s mailboxes

Posted by Anthony Jackson at Mar 27, 2010 | No Comments »

Have you noticed that your mailbox is a bit more sparsely filled these days?

According to data from Mintel, credit card companies are scaling back on the number of direct mail credit card offers they send out to American consumers.

In 2008, these firms sent 5.4 billion offers to people, which Mintel says is the lowest total it has recorded since 2000. Read more…

Tags: Card Offers Credit Card Credit Card Offers Offers

Credit card providers launch consumer helpline

Posted by Anthony Jackson at Mar 27, 2010 | No Comments »

Are you struggling to pay off your credit card debt? Feeling intimidated by a large balance?

Credit card issuers and payment networks have banded together to launch a new telephone hotline and website to help consumers with issues such as these.

The Help With My Credit resource is aimed at providing assistance and education to people who may not know where else to turn.

To take advantage of the service consumers can visit HelpWithMyCredit.org or phone the toll-free number 1-866-941-1030. On the phone, an operator will either direct the caller to a customer service representative who works for a credit card company or to a credit counseling agency.

The announcement comes in the wake of rising credit card default rates and concerns that this year’s charge-off rate – reflecting cases in which an issuer gives up on collecting a bill – could reach record highs.

According to the Fitch Ratings Credit Card Index, charge-offs increased by 40 percent in January, compared with the same month in 2008.

Bank of America, Capital One, Citigroup and Discover are the card providers participating in the program. Read more…

Tags: Credit Card Launch

Retail credit card defaults hit Target

Posted by Anthony Jackson at Mar 27, 2010 | No Comments »

Consumers may find it more difficult to obtain a retail credit card from a well-known shopping outlet.

A drop in sales and escalating credit card woes were the main theme of Target’s fourth quarter earnings report.

The retail giant suffered from a drop in consumer spending and announced that sales fell 1.6 percent in the fourth quarter to $19.0 billion due to a 5.9 percent slide in comparable store sales.

Meanwhile, Target reported a $135 million pre-tax loss for its credit card segment where one year ago the company earned a $189 million profit. The loss stems from the company’s need to set aside additional funds for mounting bad credit card accounts.

The Wall Street Journal reports that Target has struggled with rising delinquencies and charge-offs in the past few months. Read more…

Tags: Credit Card Retail Credit Retail Credit Card Target

This Credit Card Isn’t Mine – What Should I Do?

Posted by Andrea Lewis at Mar 27, 2010 | No Comments »

Dear Creditnet: I just pulled my credit report and found out I have a credit card for $1,000, but I never applied for this card. What should I do?

Answer: Don’t panic. Your first reaction may be to freak out and assume someone has illegally opened a credit card in your name. And while this could be the case, you should take a few minutes do a little more groundwork before assuming you’ve become a victim of identity theft.

Is it possible you could be listed as an authorized user on someone’s credit card? Perhaps a parent, spouse, or girlfriend/boyfriend? If so, the account may still show up on your credit reports even though you’ve never actually applied for the credit card yourself. Take a closer look at your credit reports and you might be surprised to find a reference to you as an authorized user.

Likewise, is it possible you actually applied for a credit card offer without realizing it? Unfortu

Read more…

Tags: Credit Card Should

Late credit card payments burden consumers

Posted by Anthony Jackson at Mar 27, 2010 | No Comments »

Unemployment seems to be having a ripple effect on consumers’ personal finances these days. As job losses mount, more and more Americans are finding it harder to manage credit card debt and make payments on time.

Yesterday, credit rating agency Fitch Ratings said that for the second month running the rate of credit cards payments more than 60 days past due reached an all-time high.

When a bank considers a loan to be “uncollectable” it will move the bad debt off its balance sheet. Read more…

Tags: Consumers Credit Card

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