NEW YORK (CBS) ― If you're trying to figure out how to pay for everything on your holiday list, this year you have a lot more options. Retailers and credit card companies have found ways for you to shop and save.
Emily Adams usually goes all out on holiday shopping, but not this year.
"It's very important that I watch every single penny that leaves my wallet," Adams said.
In fact, 59 percent of consumers are planning on downsizing their spending this holiday season. To entice you to open your wallet stores and credit card companies are getting creative. Some retailers are offering up to 25 percent off on an entire purchase if you open a new card.
At the Gap, Sears, Old Navy, Banana Republic and Macy's existing card-holders get extra savings, coupons and bonuses.
"If I can get a deeper discount this season because of the tough economy, I probably will," Adams said.
Kmart and Sears recently rolled out a zero percent interest and zero payments until June 2009 program. Online payment sites like E-bill-me, Google checkout and Pay Pal all are working with major retailers to offer instant holiday rebates, discounts and even deferred payments.
"Not having to pay anything for 90 days is great, but just be sure you have the money at the end of the 90 days because you'll get whacked again on penalties and interest," said Sally Greenberg of the National Consumers League.
But there is an impact on your credit when choosing these options; your score may fall. And check interest rates closely because they may rise after a low introduction and store cards typically carry much higher rates, as do many traditional credit cards.
"Credit card issuers raising interest rates on customers who have never been late on a single bill and these interest rates are sometimes 22, 29 even 36 percent," said Gerri Detweiler of Credit.com.
If you want to avoid paying with plastic altogether layaway is making a comeback at major retailers, as well as online.
If you don't break out the store card, traditional credit cards are also offering rewards for holiday shopping like bonus frequent flier miles and points. So check with your Mastercard and Visa issuers.
source : http://wcbstv.com
Wednesday, December 3, 2008
Monday, December 1, 2008
Christmas shopping? Be careful!
The month ahead will be busy for criminals as well as for holiday shoppers, District Attorney Lynne Abraham and Deputy Police Commissioner Kevin Bethel warned yesterday.
"There is always somebody looking to separate you from your money; the best course of action is prevention," Abraham said at a news conference at which she and Bethel shared strategies for shoppers to protect themselves.
While Black Friday launched one of the busiest shopping weekends of the year, so-called Cyber Monday - when many holiday shoppers hit the Internet in search of deals this Monday - will offer plenty of opportunities for computer-savvy thieves, she said.
"Nobody is safe from thieves or cyber-crime," Abraham said. "If your identity is stolen, you could spend 18 months to three years in credit purgatory. Prevention is critical."
Her online-shopping tips:
* Use a credit card instead of a debit card. Most credit cards cap liability at $50, while there may not be a cap with a debit card, which is an open invitation for hackers to loot your entire bank account.
* Dedicate one credit card for online shopping only, so that you can more easily track your purchases - and unauthorized purchases.
* Never give out your Social Security number.
* Delete unsolicited bulk e-mail solicitations, which could be computer viruses or scammers. Instant-credit offers and "free" travel vacations often are scams, too.
* Beware of high-pressure sales and online auctions. They may be legal, but you may overpay.
In stores, she said, shoppers also should exercise caution:
* Guard your credit cards closely. A shifty retail clerk or restaurant server could swipe your credit card on a "wedge," duplicating the information on your credit card's magnetic stripe.
* Don't put your purse in a shopping cart; zip it closed, strap it around you and tuck it under your arm. Or carry your wallet in an inside pocket. Passers-by who "bump" into you might instead be skilled pickpockets.
* Stow purchases in your trunk so that they can't be seen and stolen. Park in a well-lighted area. Avoid parking next to vans, in which muggers may be hiding.
* Always accompany young children to the restroom, where unforeseen danger may lurk.
* Going-out-of-business sales: Check a company's policies before buying from one that's poised to close. Many purchases are final sales, no returns or exchanges. Also check to see if the company will honor coupons and previously purchased gift cards.
* Gift cards: Many have expiration dates and progressive fees.
Abraham and Bethel also urged shoppers to avoid these holiday scams:
* Name-a-Star. While it sounds romantic and has become popular, only the International Astronomical Union names stars - and they are not for sale.
source : http://www.philly.com
Thursday, November 20, 2008
Troubles Are Deepening At Target's Credit-Card Unit
The sharp deterioration raises questions about a stepped-up role by partner
Target says it can hold out at least through next month before the banking giant would begin exercising its right to step in and mandate underwriting and risk-management changes.
Delinquencies for Target's
Around 20%, or 47 basis points, of the overall 230 basis-point rise came just last month.
The 8.1% total is the portfolio's highest monthly level since at least 2001, industry data show. It came as net charge-offs for Target's portfolio topped 10% for a second consecutive month, coming in at 10.2%. Charge-offs rose to 10.1% in September.
And problems have been getting worse.
Aggregate collections fell to an 11% rate of average receivables in October, down 281 basis points from a year ago.
Roughly
A little over
Target also reported that customers with two missed payments account for
The figures are contained in a regulatory filing by Target on Thursday and give a fuller picture of how the company's credit-card operations are boring a major hole into the company's profitability.
Target on Monday said third-quarter net income dropped 24% on reduced profit from the credit-card division. Bad-debt expense more than doubled to
The deteriorating economy is trouncing the credit-card division's performance and raising questions about whether
Target in May sold 47% of its stake in the credit-card unit to
If "substantial unanticipated portfolio deterioration" occurs,
According to Jefferies retail analyst
A Target spokeswoman declined to discuss what may occur beyond then, saying only that Target is "firmly in control of our credit-card operations."
A
Still, 2009 is just over a month away and economic conditions are showing signs of further deterioration. The Federal Reserve on Wednesday said the U.S. economy could contract for as much as a year.
source : http://money.cnn.com/news
Monday, November 10, 2008
Solon calls for removal of credit card fees
A lawmaker on Monday called on credit card companies to scrap "unwanted" and "burdensome" surcharges following the recent passage into law of a measure installing a credit information system.
Citing Republic Act 9510 or the Credit Information System Law, Cebu Representative Eduardo Gullas urged 15 member firms of the Credit Card Association of the Philippines (CCAP) to immediately remove annual membership fees and extra charges on late payments.
"Issuers no longer have any excuses to continue penalizing credit card holders with no oppressive extra fees and charges, now that we have a new law enabling them to ferret out bad creditors and effectively reducing transaction costs," Gullas said in a statement.
Signed by President Arroyo last October 30, RA 9510 creates the Credit Information Corp. (CIC), which would ease credit processing and lessen transaction costs for credit card issuers, lenders as well as clients. The new credit information system is also expected to minimize the risk of defaults, with CIC providing standardized information on the credit history and financial condition of potential borrowers.
The CIC would be 60 percent owned by the national government, while the remaining 40 percent will belong to qualified private institutional investors such as industry groups of banks, quasi-banks, and other credit-related associations.
Gullas reiterated that local issuers have been punishing consumers with needless fees.
Apart from annual fees and late payment charges, he said, credit card firms charge users an annual interest rate of up to 42 percent, which is almost four times the 11 percent being assessed by card issuers in the US. In other words, credit card companies in the country charge a 35 percent monthly interest, a huge amount compared to 0.91 percent in the US.
"Also, in the US and other countries, card issuers do not impose annual membership fees. Here, issuers collect anywhere from P750 to P1,200 per principal cardholder, plus an extra P500 for every supplementary cardholder. This is outrageous," Gullas said.
According to the Bangko Sentral ng Pilipinas, credit cards account for 5.5 percent of the total loan portfolio of banks, with credit card issuers reporting a total of P106 billion in receivables as of September, up 22.6 percent from a year ago. This is because more than five million Filipinos routinely use credit cards and the number is growing around 10 percent yearly.
source : http://www.abs-cbnnews.com
Tuesday, November 4, 2008
Reform credit-card practices
You know the financial landscape has shifted dramatically when the big banks and consumer groups agree about credit card debt. The banks, with the consumer groups' support, are asking federal regulators for the ability to forgive up to 40 percent of the unpaid debt of their most troubled customers.
Self-interest is at play, of course. Banks are worried that the most indebted card-card holders will walk away from their obligation much as thousands of homeowners have with mortgages they can't afford. A program to forgive some of the debt will make it easier for banks to collect on the other 60 percent. And if a consumer's credit-card problem is partially relieved, chances are better that mortgage payments will be made.
But the quicksand the banks are trying to pull people from is a hazard they themselves created.
The banks have established a credit-card payment structure that maximizes profit for them but drives costs up for consumers with exorbitant interest rates and late fees.
The House this year has passed a reasonable reform bill that takes some of the most unfair edges off the interest rates and late charges.
The Senate has the reform package on its agenda, and should pass it — with the support of the banks. Without more reasonable payment terms, credit-card users will continue to fall into the kind of debt the banks fear.
source : http://www.democratandchronicle.com
Monday, November 3, 2008
DBS on Monday launched a new credit card targeted at owners and senior executives of SMEs.
The DBS World Business Card offers unlimited free access to over 300 airport lounges to enable bosses who now fly economy, instead of business class to enjoy the benefits of the airport lounge without incurring additional costs.
The card, which is by invitation only, also enables bosses to wine and dine their clients at affordable prices at top restaurants in Singapore and overseas.
DBS will send out invitations for the DBS World Business Card to 10,000 of its SME customer base from Monday.
source : http://www.straitstimes.com
Sunday, October 19, 2008
Tame Your Credit Card Interest With Transfers
Paying down debt is one of the best steps consumers can take to get through a recession.
What's on your credit card is one of the most important types of debt to rein in. One way to get control over multiple cards with varying balances and interest rates is to transfer your balances to a new card with a lower rate. In fact, many cards advertise balance transfer rates as low as 0% for a set period, which is an appealing alternative to the annual interest rates of 15% or more.
What's on your credit card is one of the most important types of debt to rein in. One way to get control over multiple cards with varying balances and interest rates is to transfer your balances to a new card with a lower rate. In fact, many cards advertise balance transfer rates as low as 0% for a set period, which is an appealing alternative to the annual interest rates of 15% or more.
But as is often the case with credit cards, the devil is in the details. If you are planning on a balance transfer to solve your revolving debt issues, here are a few things to consider.
Teaser rates don't last: Thanks to the Federal Truth in Lending Act, credit card companies are required to outline the card's fees and rates in a table called the Schumer Box. While the information has to be present in the table, it can be confusing, given the myriad of rates and percentages included in the summary. When you locate the table (often found under the "Pricing and Terms" section of the card's introductory materials), find the section that describes the balance transfer APR (annual percentage rate). There will be a number of rates listed, one of which is the 0% APR (or other low rate) that first caught your eye. That rate is the teaser rate, and it can last for just a few months or more than a year. After that introductory period, your rate will automatically switch to the card's higher regular rate.
source : http://www.thestreet.com
Friday, October 17, 2008
Credit Card Defaults Rising, Banks Say
NEW YORK, NY — (OfficialWire) — 10/16/08 — Credit card defaults are rising among U.S. consumers in an already tightening credit environment, various banks said.
J.P. Morgan Chase OTCPK:JPMZP said credit card account defaults rose 45 percent in the third quarter compared with the same period a year ago. The bank predicted 7 percent of their credit card loans would be in default in 2009, The Washington Post reported Thursday.
Capital One, also expects credit card defaults to reach 7 percent next year. In September, 6.34 percent of their credit cards accounts went into default, up from 5.96 percent in August.
The data points to a national spending habit that has U.S. credit card holders living beyond their means.
"Given that the savings rate has been minuscule, there are no reserves in the tank for the consumer to tap his savings to support his spending," Scott Valentin, a financial services analyst at Friedman Billings Ramsey told the Post.
Credit card debt has risen 75 percent in the past 10 years, while U.S. wages and savings rates have stayed flat, the Post reported.
source : http://www.officialwire.com
J.P. Morgan Chase OTCPK:JPMZP said credit card account defaults rose 45 percent in the third quarter compared with the same period a year ago. The bank predicted 7 percent of their credit card loans would be in default in 2009, The Washington Post reported Thursday.
Capital One, also expects credit card defaults to reach 7 percent next year. In September, 6.34 percent of their credit cards accounts went into default, up from 5.96 percent in August.
The data points to a national spending habit that has U.S. credit card holders living beyond their means.
"Given that the savings rate has been minuscule, there are no reserves in the tank for the consumer to tap his savings to support his spending," Scott Valentin, a financial services analyst at Friedman Billings Ramsey told the Post.
Credit card debt has risen 75 percent in the past 10 years, while U.S. wages and savings rates have stayed flat, the Post reported.
source : http://www.officialwire.com
Tuesday, October 14, 2008
Toyota to Offer Rewards Credit Card With Points Redeemable at Toyota Dealers
Following years of American tradition, Toyota Financial Services is rolling out its own credit card, the Toyota Rewards Visa, which gives cardholders points they can use towards repairing their current Toyota or buying or leasing a new one.
For every dollar charged to your Toyota Rewards Visa card, you'll get one point. For every dollar you charge on the card at a Toyota dealership, you'll get five points. Toyota doesn't mention in any of its ads how much a point is worth, so we went to www.toyotarewardsvisa.com and used the online points calculator to find out. According to the calculator (and Toyota's Terms and Agreements), 100 points is worth $1 at a participating dealership. That means you'll have to spend $25 at a dealership or $100 elsewhere in order to save $1 on your next Toyota-related purchase, making the dealership points worth 25 cents and regular points worth one cent.
While that's not much, if you use your card a lot and your Toyota only ever needs to go to the dealer for routine maintenance, you could get some real savings out of the card. If Toyota allows you to collect points by charging maintenance on your Toyota car or truck to the card, you may be able to earn a large number of points towards your next visit, but we're not sure if that's the case, nor are we sure if the points can be combined with other offers. Regardless of how you earn the points, they can be used towards maintenance and repairs, Toyota accessories, buying or leasing a new Toyota or buying a used Toyota.
The card also comes with several standard incentives, such as a 0% introductory APR for the first six months. After that, Signature cardholders will pay 11.75% per month while Platinum cardholders will pay 11.75% to 16.99% per month. Your APR will be determined by your credit history. You get 2500 bonus points ($25 at the dealership) on your first purchase, and there is no annual fee and no limit to the number of points you can earn. Points cannot be turned into cash, so you have to use them with Toyota and they expire after December 31st on the sixth year from when they were earned.
source : http://wot.motortrend.com
For every dollar charged to your Toyota Rewards Visa card, you'll get one point. For every dollar you charge on the card at a Toyota dealership, you'll get five points. Toyota doesn't mention in any of its ads how much a point is worth, so we went to www.toyotarewardsvisa.com and used the online points calculator to find out. According to the calculator (and Toyota's Terms and Agreements), 100 points is worth $1 at a participating dealership. That means you'll have to spend $25 at a dealership or $100 elsewhere in order to save $1 on your next Toyota-related purchase, making the dealership points worth 25 cents and regular points worth one cent.
While that's not much, if you use your card a lot and your Toyota only ever needs to go to the dealer for routine maintenance, you could get some real savings out of the card. If Toyota allows you to collect points by charging maintenance on your Toyota car or truck to the card, you may be able to earn a large number of points towards your next visit, but we're not sure if that's the case, nor are we sure if the points can be combined with other offers. Regardless of how you earn the points, they can be used towards maintenance and repairs, Toyota accessories, buying or leasing a new Toyota or buying a used Toyota.
The card also comes with several standard incentives, such as a 0% introductory APR for the first six months. After that, Signature cardholders will pay 11.75% per month while Platinum cardholders will pay 11.75% to 16.99% per month. Your APR will be determined by your credit history. You get 2500 bonus points ($25 at the dealership) on your first purchase, and there is no annual fee and no limit to the number of points you can earn. Points cannot be turned into cash, so you have to use them with Toyota and they expire after December 31st on the sixth year from when they were earned.
source : http://wot.motortrend.com
Monday, October 13, 2008
Credit cards, credit crunch: consumers feel pinch as issuers `go on the defense'
Consumers are not just having a tougher time obtaining auto loans and mortgages. The credit crunch and weak economy also are taking a toll on credit cards.
Perhaps you have noticed that you're receiving fewer offers for credit cards in the mail. If you have iffy credit, you might find it difficult to qualify for a card now. Or you may be able to obtain one only at a high interest rate.
Even if you're not shopping for a new card, you might not be immune from the changes. Your card company might reduce your credit limit or cancel a card you don't use.
"When the economy is contracting, when unemployment and default rates are on the rise, card issuers--as well as other lenders--go on the defense," said Greg McBride, senior financial analyst with Bankrate.com
"Cardholders are on a shorter leash."
Credit card companies have been tightening their standards for more than a year as the economy soured and the chance rose that customers wouldn't be able to keep up with payments. Issuers are unlikely to loosen up until the economy significantly improves.
That might be some time. If you are having trouble getting a card, or one with favorable terms, you should start taking the financial steps that over time will make you appear less of a risk to card companies.
Customers with stellar credit, of course, will still receive a bump up in credit lines and favorable interest rates--even in this environment. But which customers are considered desirable has been evolving during the past year and a half.
It used to be if you had a FICO credit score of at least 700, among other factors, you had no trouble obtaining a card, said John Ulzheimer, president of consumer education for Credit.com. Now, you need a score of 720 or higher, which more than half of American consumers do, he said.
"We have seen some situations where 780 is the target score," Ulzheimer says. Only 17 percent of U.S. consumers score that high or greater, he said.
Credit card issuers say they have always monitored accounts but acknowledge they've stepped up their efforts.
At Bank of America, more card applications are undergoing an extra review by credit specialists, said spokeswoman Betty Riess. The bank also is taking a more aggressive look at existing accounts and will lower a credit limit if a customer has become a higher risk, she said.
Card experts say other issuers also have closed unused accounts that cost them money to keep open.
Reductions in credit limits can be sharp, said Curtis Arnold, founder of CardRatings.com. Some card issuers have cut credit limits near the level of the customer's balance, putting the customer at risk of going over their limit and getting hit with a fee as high as $39, he said.
Arnold says he also has noticed that card issuers in the past few months have become more tightfisted in other ways.
source : http://www.newsday.com
Perhaps you have noticed that you're receiving fewer offers for credit cards in the mail. If you have iffy credit, you might find it difficult to qualify for a card now. Or you may be able to obtain one only at a high interest rate.
Even if you're not shopping for a new card, you might not be immune from the changes. Your card company might reduce your credit limit or cancel a card you don't use.
"When the economy is contracting, when unemployment and default rates are on the rise, card issuers--as well as other lenders--go on the defense," said Greg McBride, senior financial analyst with Bankrate.com
"Cardholders are on a shorter leash."
Credit card companies have been tightening their standards for more than a year as the economy soured and the chance rose that customers wouldn't be able to keep up with payments. Issuers are unlikely to loosen up until the economy significantly improves.
That might be some time. If you are having trouble getting a card, or one with favorable terms, you should start taking the financial steps that over time will make you appear less of a risk to card companies.
Customers with stellar credit, of course, will still receive a bump up in credit lines and favorable interest rates--even in this environment. But which customers are considered desirable has been evolving during the past year and a half.
It used to be if you had a FICO credit score of at least 700, among other factors, you had no trouble obtaining a card, said John Ulzheimer, president of consumer education for Credit.com. Now, you need a score of 720 or higher, which more than half of American consumers do, he said.
"We have seen some situations where 780 is the target score," Ulzheimer says. Only 17 percent of U.S. consumers score that high or greater, he said.
Credit card issuers say they have always monitored accounts but acknowledge they've stepped up their efforts.
At Bank of America, more card applications are undergoing an extra review by credit specialists, said spokeswoman Betty Riess. The bank also is taking a more aggressive look at existing accounts and will lower a credit limit if a customer has become a higher risk, she said.
Card experts say other issuers also have closed unused accounts that cost them money to keep open.
Reductions in credit limits can be sharp, said Curtis Arnold, founder of CardRatings.com. Some card issuers have cut credit limits near the level of the customer's balance, putting the customer at risk of going over their limit and getting hit with a fee as high as $39, he said.
Arnold says he also has noticed that card issuers in the past few months have become more tightfisted in other ways.
source : http://www.newsday.com
Friday, October 10, 2008
Trio accused of using credit card stolen from hospital room
Two men and a woman were charged with burglary and three counts of identity theft Thursday for allegedly sneaking into the hospital room of new parents and stealing the father's backpack, then using the credit cards they found to charge items at various places in Madison.
Scheduled to appear in court later this month are Jawan L. Clash, 26, of Fitchburg, Arlena R. Lee, 19, of Madison, and Davarius L. McDonald, 23, of Madison. Because Clash and Lee have been previously convicted of crimes, they face a grand total of 51 years of prison and extended supervision if convicted, while McDonald faces a maximum of 33 years.
According to the criminal complaint filed Thursday, the trio went into Meriter Hospital through an emergency room entrance shortly before 1 a.m. on Sept. 20. Security video footage shows them checking out several rooms as they went floor to floor, finally stopping outside a fourth-floor room.
Clash went into the room, which was occupied by a woman who had given birth on Sept. 19, her newborn daughter, and her husband, all of whom were asleep at the time.
With McDonald and Lee acting as lookouts, the complaint says, Clash came out of the room and handed something to Lee, then went back in. Both McDonald and Lee were looking into the room, but also looking back toward a security camera, the complaint says.
Clash is then seen coming out of the room with a dark backpack over his shoulder, and all three leave the hospital quickly, the complaint says, with Clash still toting the backpack.
A Madison police officer who had arrested all three for retail theft in July recognized them on the hospital video, and they turned out to appear again on security video from Sept. 20 at The Buckle at West Towne, where they used the dad's credit card to buy $430 worth of merchandise.
They also used the credit card and cash found in the backpack at three places early Sept. 20, including two charges at a Mobile station and a charge at 2:32 a.m. at Selective Video, a porn shop on the Beltline.
Starting at about 10:30 a.m. that same day, they used the card at several other stores and convenience stores, with the major purchases being at Journeys Shoes at West Towne for $253 and at the Buckle.
News Source : http://www.madison.com/
Scheduled to appear in court later this month are Jawan L. Clash, 26, of Fitchburg, Arlena R. Lee, 19, of Madison, and Davarius L. McDonald, 23, of Madison. Because Clash and Lee have been previously convicted of crimes, they face a grand total of 51 years of prison and extended supervision if convicted, while McDonald faces a maximum of 33 years.
According to the criminal complaint filed Thursday, the trio went into Meriter Hospital through an emergency room entrance shortly before 1 a.m. on Sept. 20. Security video footage shows them checking out several rooms as they went floor to floor, finally stopping outside a fourth-floor room.
Clash went into the room, which was occupied by a woman who had given birth on Sept. 19, her newborn daughter, and her husband, all of whom were asleep at the time.
With McDonald and Lee acting as lookouts, the complaint says, Clash came out of the room and handed something to Lee, then went back in. Both McDonald and Lee were looking into the room, but also looking back toward a security camera, the complaint says.
Clash is then seen coming out of the room with a dark backpack over his shoulder, and all three leave the hospital quickly, the complaint says, with Clash still toting the backpack.
A Madison police officer who had arrested all three for retail theft in July recognized them on the hospital video, and they turned out to appear again on security video from Sept. 20 at The Buckle at West Towne, where they used the dad's credit card to buy $430 worth of merchandise.
They also used the credit card and cash found in the backpack at three places early Sept. 20, including two charges at a Mobile station and a charge at 2:32 a.m. at Selective Video, a porn shop on the Beltline.
Starting at about 10:30 a.m. that same day, they used the card at several other stores and convenience stores, with the major purchases being at Journeys Shoes at West Towne for $253 and at the Buckle.
News Source : http://www.madison.com/
Monday, September 29, 2008
Alliance Data and Ann Taylor Stores to launch co-brand credit card program
Sep 29, 2008 (Datamonitor via COMTEX) -- ADS | Quote | Chart | News | PowerRating -- Alliance Data Systems, a provider of loyalty and marketing solutions, has signed a multi-year agreement with Ann Taylor Stores Corporation, a retailer of women's apparel, footwear and accessories, to launch a new co-brand credit card program and to continue providing private label credit card services.
The agreement terms include launching a new co-brand MasterCard credit card program and an exclusive points-based rewards program for cardholders.
The services Alliance Data provides for both the co-brand and private label credit card programs include: account acquisition and activation; receivables funding; card authorization; card issuance; statement generation; direct mail and email marketing services; remittance processing; customer service functions; and marketing services.
Alliance Data will launch four new card-plastic designs for Ann Taylor, including private label and co-brand cards for both the company's Ann Taylor and Ann Taylor Loft brands.
Ivan Szeftel, president of Alliance Data's retail services, said: "We are excited about expanding our relationship with Ann Taylor by providing this fully integrated credit and marketing solution. Our programs are guided by analytics and results-oriented marketing principles, and we are leveraging our expertise and the strength of the Ann Taylor brands to deliver a truly special program to their clients."
http://www.datamonitor.com
Republication or redistribution, including by framing or similar means, is expressly prohibited without prior written consent. Datamonitor shall not be liable for errors or delays in the content, or for any actions taken in reliance thereon
For full details on Alliance Data (ADS) click here. Alliance Data (ADS) has Short Term PowerRatings of 5. Details on Alliance Data (ADS) Short Term PowerRatings is available at This Link.
News Source : http://www.tradingmarkets.com/
The agreement terms include launching a new co-brand MasterCard credit card program and an exclusive points-based rewards program for cardholders.
The services Alliance Data provides for both the co-brand and private label credit card programs include: account acquisition and activation; receivables funding; card authorization; card issuance; statement generation; direct mail and email marketing services; remittance processing; customer service functions; and marketing services.
Alliance Data will launch four new card-plastic designs for Ann Taylor, including private label and co-brand cards for both the company's Ann Taylor and Ann Taylor Loft brands.
Ivan Szeftel, president of Alliance Data's retail services, said: "We are excited about expanding our relationship with Ann Taylor by providing this fully integrated credit and marketing solution. Our programs are guided by analytics and results-oriented marketing principles, and we are leveraging our expertise and the strength of the Ann Taylor brands to deliver a truly special program to their clients."
http://www.datamonitor.com
Republication or redistribution, including by framing or similar means, is expressly prohibited without prior written consent. Datamonitor shall not be liable for errors or delays in the content, or for any actions taken in reliance thereon
For full details on Alliance Data (ADS) click here. Alliance Data (ADS) has Short Term PowerRatings of 5. Details on Alliance Data (ADS) Short Term PowerRatings is available at This Link.
News Source : http://www.tradingmarkets.com/
Saturday, September 27, 2008
Alameda man arrested in identity theft case
ALAMEDA — A search of a man's laptop as part of an identity theft investigation revealed that he was in possession of the personal information of 95 people, including their credit card numbers, police said.
Tou Man "Ray" Kuan, 23, was arrested Wednesday on an $80,000 warrant at his Alameda residence and is expected to face multiple felony charges in connection with the case.
Kuan admitted to using the credit card number of at least one woman to try and purchase a $360 Sony Play Station on the Internet, police said.
Investigators are piecing together how someone acquired the information, which included people's names, addresses, credit card numbers, as well as the security number on the back of each credit card that is meant to prevent the card's misuse.
Kuan told police he received the list from an acquaintance in Japan, and detectives suspect that he may have been planning to use the credit card numbers to play online games with his friends.
Alameda police began investigating Kuan in August after they were notified by the Parker County Sheriff's Department in Texas about the attempt to purchase the PlayStation.
The victim was a 46-year-old woman who lives in the county, Alameda police Detective Greg Ella said.
"He admitted that he tried to purchase the Play Station on eBay," Ella said about Kuan. "He said he was 'testing' the information on the list to check whether it actually could be used."
tracked down Kuan through records at Alameda Power & Telecom, where his Internet account was used for the eBay transaction, Ella said.
After he was interviewed, Kuan allowed police to search his laptop, which led them to discover the personal details of 95 people, police said.
The victims live throughout the United States and include some people who live in Canada.
"In some cases they had detected fraud on their cards," Ella said. "But in most they did not know that their card was compromised and that their information was floating around the Internet."
Kuan remains in custody at Santa Rita county jail in Dublin.
In the wake of the case, police are reminding people to take steps to avoid becoming identity theft victims, including shredding old account statements and other documents that may contain personal information.
Police also suggest people regularly check their credit and bank accounts for fraudulent activity.
News Source : http://www.mercurynews.com/
Tou Man "Ray" Kuan, 23, was arrested Wednesday on an $80,000 warrant at his Alameda residence and is expected to face multiple felony charges in connection with the case.
Kuan admitted to using the credit card number of at least one woman to try and purchase a $360 Sony Play Station on the Internet, police said.
Investigators are piecing together how someone acquired the information, which included people's names, addresses, credit card numbers, as well as the security number on the back of each credit card that is meant to prevent the card's misuse.
Kuan told police he received the list from an acquaintance in Japan, and detectives suspect that he may have been planning to use the credit card numbers to play online games with his friends.
Alameda police began investigating Kuan in August after they were notified by the Parker County Sheriff's Department in Texas about the attempt to purchase the PlayStation.
The victim was a 46-year-old woman who lives in the county, Alameda police Detective Greg Ella said.
"He admitted that he tried to purchase the Play Station on eBay," Ella said about Kuan. "He said he was 'testing' the information on the list to check whether it actually could be used."
tracked down Kuan through records at Alameda Power & Telecom, where his Internet account was used for the eBay transaction, Ella said.
After he was interviewed, Kuan allowed police to search his laptop, which led them to discover the personal details of 95 people, police said.
The victims live throughout the United States and include some people who live in Canada.
"In some cases they had detected fraud on their cards," Ella said. "But in most they did not know that their card was compromised and that their information was floating around the Internet."
Kuan remains in custody at Santa Rita county jail in Dublin.
In the wake of the case, police are reminding people to take steps to avoid becoming identity theft victims, including shredding old account statements and other documents that may contain personal information.
Police also suggest people regularly check their credit and bank accounts for fraudulent activity.
News Source : http://www.mercurynews.com/
Friday, September 26, 2008
French hold out against credit crunch
Unlike Britain, the US and many other countries, France appears to be weathering the credit crunch storm in reasonable shape.
The BBC's Emma Jane Kirby asks if other nations should take a leaf out of the thrifty Gallic book?
If I had to use one word to describe France's financial system, the word I would choose would be "cautious".
French banks are immensely careful about whom they lend money to and, to limit risks, they spread their investments much more widely than those in the US or UK.
Only about a quarter of banking activity is related to investment banking and dealer-broker activity - the rest is all to do with retail banking.
This meant when the credit crunch bit, the French banks were hit a lot less hard than those in many other countries.
But it is not just about banking investments - this country as a whole simply takes far fewer risks.
Take the level of household debt. In France, it is at 47% of GDP, while in the UK it is well over twice that.
Its not that temptation does not exist in France - the lure of consumerism is just as strong as it is elsewhere.
But it is very difficult to spend money you do not have in France.
French credit cards are little more than debit cards, so there is no question of simply sticking a couple of flat screen TVs on your credit card and hoping to pay for them later - if there are insufficient funds in your account, your bank will immediately block the transaction.
In the wealthy suburb of St Germain-en-Laye, just outside Paris, I met Francois Artignan, a well-to-do banker who moved back to France two years ago after a long stint of living in the UK.
Francois admits he misses the buzz of London living but says he was alarmed by the way so many British people lived on their credit cards and never saved money.
"It's true that you can note a big difference in consuming behaviours between the French and the English," Mr Artignan says.
"People here don't believe you can just put your debts together and get them refinanced... But in London... it was as if wealth was something you could get from a bank, it's a sort of miracle people seem to believe in England.
"It seems to me people there are very keen to use up all the money they have, and that's a worry when you wonder how people are going to have money for retirement for instance," Mr Artignan says.
News Source : http://news.bbc.co.uk/
The BBC's Emma Jane Kirby asks if other nations should take a leaf out of the thrifty Gallic book?
If I had to use one word to describe France's financial system, the word I would choose would be "cautious".
French banks are immensely careful about whom they lend money to and, to limit risks, they spread their investments much more widely than those in the US or UK.
Only about a quarter of banking activity is related to investment banking and dealer-broker activity - the rest is all to do with retail banking.
This meant when the credit crunch bit, the French banks were hit a lot less hard than those in many other countries.
But it is not just about banking investments - this country as a whole simply takes far fewer risks.
Take the level of household debt. In France, it is at 47% of GDP, while in the UK it is well over twice that.
Its not that temptation does not exist in France - the lure of consumerism is just as strong as it is elsewhere.
But it is very difficult to spend money you do not have in France.
French credit cards are little more than debit cards, so there is no question of simply sticking a couple of flat screen TVs on your credit card and hoping to pay for them later - if there are insufficient funds in your account, your bank will immediately block the transaction.
In the wealthy suburb of St Germain-en-Laye, just outside Paris, I met Francois Artignan, a well-to-do banker who moved back to France two years ago after a long stint of living in the UK.
Francois admits he misses the buzz of London living but says he was alarmed by the way so many British people lived on their credit cards and never saved money.
"It's true that you can note a big difference in consuming behaviours between the French and the English," Mr Artignan says.
"People here don't believe you can just put your debts together and get them refinanced... But in London... it was as if wealth was something you could get from a bank, it's a sort of miracle people seem to believe in England.
"It seems to me people there are very keen to use up all the money they have, and that's a worry when you wonder how people are going to have money for retirement for instance," Mr Artignan says.
News Source : http://news.bbc.co.uk/
Thursday, September 25, 2008
Labour's credit card slated for sky-high interest
THE cash-strapped Labour Party is urging members to sign up for a credit card that could seriously damage their wealth.
Delegates at the party's conference in Manchester are being offered the Visa card in exchange for a £15 donation.
But financial experts have warned that the 18.9 per cent APR interest rate is cripplingly high and that much better deals are availab
Labour has three credit cards, but only the most expensive was offered to delegates at Manchester.
Financial experts said consumers should shop around.
David Kuo, head of personal finance at money website Fool.co.uk, said: "We should never allow emotions to cloud our financial judgment. In the case of political affinity cards, politics and money just do not mix."
Other high street credit cards offer interest rates up to 10.4 per cent lower.
A Labour spokesman said all the main political parties in the UK offered affinity cards and that the deal was "comparable" with others.
"We offer a range of services to our members, as do almost all large membership organisations," he added.
The Labour Party still has debts of £16 million, despite a £1 million donation from JK Rowling, the Harry Potter author, which cheered delegates at the start of conference week.
Total debts have fallen by £11 million since 2005, and Jack Dromey, the party's treasurer, has said Labour is making "real progress" with its finances.
He said the party made a £7.5 million surplus last year and was no longer relying on overdrafts.
News Source : http://news.scotsman.com/
Delegates at the party's conference in Manchester are being offered the Visa card in exchange for a £15 donation.
But financial experts have warned that the 18.9 per cent APR interest rate is cripplingly high and that much better deals are availab
Labour has three credit cards, but only the most expensive was offered to delegates at Manchester.
Financial experts said consumers should shop around.
David Kuo, head of personal finance at money website Fool.co.uk, said: "We should never allow emotions to cloud our financial judgment. In the case of political affinity cards, politics and money just do not mix."
Other high street credit cards offer interest rates up to 10.4 per cent lower.
A Labour spokesman said all the main political parties in the UK offered affinity cards and that the deal was "comparable" with others.
"We offer a range of services to our members, as do almost all large membership organisations," he added.
The Labour Party still has debts of £16 million, despite a £1 million donation from JK Rowling, the Harry Potter author, which cheered delegates at the start of conference week.
Total debts have fallen by £11 million since 2005, and Jack Dromey, the party's treasurer, has said Labour is making "real progress" with its finances.
He said the party made a £7.5 million surplus last year and was no longer relying on overdrafts.
News Source : http://news.scotsman.com/
Wednesday, September 24, 2008
Congressman Welch Supports Credit Card Reform; Encourages Congress to Act on Credit Card Interchange Fees that Hurt Both Merchants and Consumers
WASHINGTON, Sept 23, 2008 /PRNewswire-USNewswire via COMTEX/ -- Today, the House of Representatives passed the Credit Cardholders' Bill of Rights Act, legislation to rein in unfair and deceptive credit card company practices. Congressman Peter Welch (D-VT) made the following floor statement in support of credit card company reforms and urged subsequent legislative action on credit card interchange fees, one anticompetitive card company practice not being specifically addressed today:
"This bill is the beginning of important reforms in credit cards -- the beginning of increased protection for consumers of credit card companies. The other side of the coin, which we're not taking up today but will hopefully get to, is for merchants who pay fees to credit card companies for every single credit card transaction -- the so-called interchange fees.
Mr. Speaker, in the United States, our credit card interchange fees are the highest, the highest, in the entire world accounting for as much as 2% of the cost of every credit card transaction, in some cases a good deal more. These bloated interchange fees are passed on to the consumer. The average American family in fact pays an extra $300 a year in items they purchase as a result of credit cards.
I have introduced legislation, H.R. 6248, the Credit Card Interchange Fees Act, which would require credit card companies to disclose their interchange rates, terms, and conditions to consumers, businesses, and the public. In addition, the bill would empower the Federal Trade Commission to review these rates and rules and prohibit any practices that violate consumer-protection or anti-competitive laws. Chairman John Conyers also has important legislation - the Credit Card Fair Fee Act -- that has been passed out of the Judiciary Committee and would give merchants a seat at the negotiating table to determine the fees assessed for every sale made by credit card.
In the next Congress, I look forward to continuing to work with my colleagues on the Financial Services Committee and the Judiciary Committee to pass legislation into law that protects both the consumer and the merchant from credit card companies."
News Source : http://www.marketwatch.com/news/
"This bill is the beginning of important reforms in credit cards -- the beginning of increased protection for consumers of credit card companies. The other side of the coin, which we're not taking up today but will hopefully get to, is for merchants who pay fees to credit card companies for every single credit card transaction -- the so-called interchange fees.
Mr. Speaker, in the United States, our credit card interchange fees are the highest, the highest, in the entire world accounting for as much as 2% of the cost of every credit card transaction, in some cases a good deal more. These bloated interchange fees are passed on to the consumer. The average American family in fact pays an extra $300 a year in items they purchase as a result of credit cards.
I have introduced legislation, H.R. 6248, the Credit Card Interchange Fees Act, which would require credit card companies to disclose their interchange rates, terms, and conditions to consumers, businesses, and the public. In addition, the bill would empower the Federal Trade Commission to review these rates and rules and prohibit any practices that violate consumer-protection or anti-competitive laws. Chairman John Conyers also has important legislation - the Credit Card Fair Fee Act -- that has been passed out of the Judiciary Committee and would give merchants a seat at the negotiating table to determine the fees assessed for every sale made by credit card.
In the next Congress, I look forward to continuing to work with my colleagues on the Financial Services Committee and the Judiciary Committee to pass legislation into law that protects both the consumer and the merchant from credit card companies."
News Source : http://www.marketwatch.com/news/
Monday, September 22, 2008
Who will bail out American families?
The logic is impeccable.
The government bails out American International Group Inc., a private insurance company, with an $85 billion loan largely because the mortgage-related securities it insures are based on subprime loans now in default.
The government bails out Fannie Mae and Freddie Mac, which trafficked in subprime home loans, because the companies claimed to be too big to be allowed to fail.
And now we face the Mother of All Bailouts—a government purchase of dangerous financial instruments based on subprime mortgages, taking speculators off the hook and leaving taxpayers with the bill. Once again, the story is that we must do this because otherwise the worldwide financial system will crumble. And once again, the blame falls on subprime lending and the culture of deregulation that fostered it.
Lost in the headlines are the families who signed their names to subprime mortgages, not knowing or caring that the pieces of paper they signed would become one of the cards in the house of cards that now threatens the U.S. economy. No less visible are the people who have lost jobs as the economy reverses, the students who can't pay for college without taking on ruinous loans and the millions of families who turned to credit cards and payday loans as they have been caught in the squeeze between declining wages and skyrocketing costs. They are casualties of a financial system that saw them not as customers, but as prey.
The secretary of the Treasury and the chairman of the Federal Reserve have told us that now is not the time to assign blame and that we must concentrate on preserving the bedrock institutions of our economy. But the real bedrock of that economy is the American family, countless thousands now in or facing foreclosure, families falling further behind on credit cards or paying 400 percent interest to payday lenders just to keep groceries on the table.
News Source: http://www.chicagotribune.com/
The government bails out American International Group Inc., a private insurance company, with an $85 billion loan largely because the mortgage-related securities it insures are based on subprime loans now in default.
The government bails out Fannie Mae and Freddie Mac, which trafficked in subprime home loans, because the companies claimed to be too big to be allowed to fail.
And now we face the Mother of All Bailouts—a government purchase of dangerous financial instruments based on subprime mortgages, taking speculators off the hook and leaving taxpayers with the bill. Once again, the story is that we must do this because otherwise the worldwide financial system will crumble. And once again, the blame falls on subprime lending and the culture of deregulation that fostered it.
Lost in the headlines are the families who signed their names to subprime mortgages, not knowing or caring that the pieces of paper they signed would become one of the cards in the house of cards that now threatens the U.S. economy. No less visible are the people who have lost jobs as the economy reverses, the students who can't pay for college without taking on ruinous loans and the millions of families who turned to credit cards and payday loans as they have been caught in the squeeze between declining wages and skyrocketing costs. They are casualties of a financial system that saw them not as customers, but as prey.
The secretary of the Treasury and the chairman of the Federal Reserve have told us that now is not the time to assign blame and that we must concentrate on preserving the bedrock institutions of our economy. But the real bedrock of that economy is the American family, countless thousands now in or facing foreclosure, families falling further behind on credit cards or paying 400 percent interest to payday lenders just to keep groceries on the table.
News Source: http://www.chicagotribune.com/
Saturday, September 20, 2008
Better pay that credit card minimum
Dear Debt Adviser,
Can I pay less than the minimum payment on my credit card? I am finding it difficult to pay the monthly payment. Thank you.
-- Nor
Dear Nor,
Your question reminds me of Sunday dinner when I was a kid. My mother, Grace, was a great cook and I'd often ask, "Can I have seconds?"
Her response was, "Of course, you can, but may you?"
Can you pay less? Sure! But may you? Now that's the real issue.
According to the cardholder agreement you signed when you accepted the credit card from the lender, the answer to your question is "No, you may not." You must make at least the minimum payment due on your statement or you are violating the terms of the agreement.
When you make less than the minimum payment, the result is not pretty.
First, you are assessed a late fee, which is typically $30 or more per month. Also, expect to move to a penalty-interest-rate status. Your new annual percentage rate could be as high as the mid-30 percent level.
Next, if you are close to the credit limit on your card, the late fee and additional interest charges added to your balance may push you over your limit. And yes, you are correct -- another fee is added to your account. This time, an over-the-limit fee of -- you guessed it -- $30 or more.
Next month, your minimum payment, which you couldn't afford to begin with, will go up to include the late fee, the over-limit fee and the higher interest charges. This makes no sense from your perspective, but it does from the lender's point of view. You are a higher risk and the lender needs to be compensated for it.
I strongly suggest you do all you can to avoid paying less than the minimum due. Start by taking a look at your discretionary spending, like meals out or entertainment, and cut back enough to try to cover your minimum payment.
You can also try to get some more income from a part-time job or by having a garage sale.
If you need a longer-term solution -- aside from cutting back on lattes or trips to your favorite ice-cream place -- call your credit-card issuer and ask for a hardship program. You should expect to be asked to document why you can't make your payment, what you are doing to correct the situation and how long you will need a reduced payment.
News Source : http://www.abcactionnews.com
Can I pay less than the minimum payment on my credit card? I am finding it difficult to pay the monthly payment. Thank you.
-- Nor
Dear Nor,
Your question reminds me of Sunday dinner when I was a kid. My mother, Grace, was a great cook and I'd often ask, "Can I have seconds?"
Her response was, "Of course, you can, but may you?"
Can you pay less? Sure! But may you? Now that's the real issue.
According to the cardholder agreement you signed when you accepted the credit card from the lender, the answer to your question is "No, you may not." You must make at least the minimum payment due on your statement or you are violating the terms of the agreement.
When you make less than the minimum payment, the result is not pretty.
First, you are assessed a late fee, which is typically $30 or more per month. Also, expect to move to a penalty-interest-rate status. Your new annual percentage rate could be as high as the mid-30 percent level.
Next, if you are close to the credit limit on your card, the late fee and additional interest charges added to your balance may push you over your limit. And yes, you are correct -- another fee is added to your account. This time, an over-the-limit fee of -- you guessed it -- $30 or more.
Next month, your minimum payment, which you couldn't afford to begin with, will go up to include the late fee, the over-limit fee and the higher interest charges. This makes no sense from your perspective, but it does from the lender's point of view. You are a higher risk and the lender needs to be compensated for it.
I strongly suggest you do all you can to avoid paying less than the minimum due. Start by taking a look at your discretionary spending, like meals out or entertainment, and cut back enough to try to cover your minimum payment.
You can also try to get some more income from a part-time job or by having a garage sale.
If you need a longer-term solution -- aside from cutting back on lattes or trips to your favorite ice-cream place -- call your credit-card issuer and ask for a hardship program. You should expect to be asked to document why you can't make your payment, what you are doing to correct the situation and how long you will need a reduced payment.
News Source : http://www.abcactionnews.com
Tuesday, September 16, 2008
School’s In Session On How To Choose, Use Credit Cards
College students, listen up - especially freshmen. On campus this semester, credit-card companies are going to hunt you down. They will send credit-card solicitations to your dorm mailbox, staff tables around campus and offer you cool handouts if you apply for their card.
Fifty-five percent of college students get their first credit card in their freshman year, said Clearpoint Financial Solutions spokesman Bruce McClary in Richmond, Va.
Bill Hardekopf, co-author of “The Credit Card Guidebook,” available free at http://www.lowcards.com, said an incoming freshman with no debt in September will have about $1,500 in credit-card debt by May.
Many students graduate with an average balance of $2,785 on their credit cards, according to US PIRG, the federation of state public interest research groups in Washington.
Do you want to sink that far into debt before you graduate? Your first credit card is the gateway to a good or bad financial future. Before saying yes to one, follow this advice from experts who know how fast you can mess up if you don’t pick the right credit card and use it responsibly:
# Shop for the best card. Look for the lowest interest rate and best terms. Avoid cards that have an annual fee. Compare cards at http://www.lowcards.com, http://www.indexcreditcards.com, http://www.bankrate.com or http://www.creditcards.com.
# Use the free online calculators. They will show you how much you will repay the issuer of one card versus another when their interest rates and terms differ. There’s a calculator at http://www.bankrate.com.
# Credit is not intended to pay for things you can’t afford. If you can’t pay off your credit-card bill every month, you probably can’t afford what you bought, said Maxine Sweet, spokeswoman for the Experian credit agency in Texas. If you carry over charges for whatever reason, devise a plan to pay it down and get back to paying it off every month.
# Don’t make an on-the-spot decision. Take the application and disclosure statement back to your dorm and read it carefully. Don’t sign your name to a mystery product that you don’t understand, McClary advised. Don’t make a hasty decision to get that really cool iPod offered free for signing up. Call Clearpoint at (877) 877-1995 and run the rates and terms by one of its credit counselors for free.
# Don’t believe everything you hear. A credit-card marketer may offer you a zero percent credit card, said Cherry Hedges, financial education director for the Virginia Credit Union in Richmond. When you get the card, the disclosure statement may reveal an 18 percent APR.
# Don’t use it if you don’t like it. “Once they use the credit card, they’ve agreed to what is in the disclosure statement,” Hedges said. “See if you can get a better rate or cancel the card.”
# Miss payments and you’re a dead duck. “Even if you’re just a minute late, you possibly could be hit by much higher penalty rates,” said Linda Sherry, national spokesperson for San Francisco-based Consumer Action. Your rates could zoom from 18 percent to 32 percent. Worse, if one credit-card company raises your rate, another can, too. Sign up for payment alerts.
News Source : http://www.tricities.com/
Fifty-five percent of college students get their first credit card in their freshman year, said Clearpoint Financial Solutions spokesman Bruce McClary in Richmond, Va.
Bill Hardekopf, co-author of “The Credit Card Guidebook,” available free at http://www.lowcards.com, said an incoming freshman with no debt in September will have about $1,500 in credit-card debt by May.
Many students graduate with an average balance of $2,785 on their credit cards, according to US PIRG, the federation of state public interest research groups in Washington.
Do you want to sink that far into debt before you graduate? Your first credit card is the gateway to a good or bad financial future. Before saying yes to one, follow this advice from experts who know how fast you can mess up if you don’t pick the right credit card and use it responsibly:
# Shop for the best card. Look for the lowest interest rate and best terms. Avoid cards that have an annual fee. Compare cards at http://www.lowcards.com, http://www.indexcreditcards.com, http://www.bankrate.com or http://www.creditcards.com.
# Use the free online calculators. They will show you how much you will repay the issuer of one card versus another when their interest rates and terms differ. There’s a calculator at http://www.bankrate.com.
# Credit is not intended to pay for things you can’t afford. If you can’t pay off your credit-card bill every month, you probably can’t afford what you bought, said Maxine Sweet, spokeswoman for the Experian credit agency in Texas. If you carry over charges for whatever reason, devise a plan to pay it down and get back to paying it off every month.
# Don’t make an on-the-spot decision. Take the application and disclosure statement back to your dorm and read it carefully. Don’t sign your name to a mystery product that you don’t understand, McClary advised. Don’t make a hasty decision to get that really cool iPod offered free for signing up. Call Clearpoint at (877) 877-1995 and run the rates and terms by one of its credit counselors for free.
# Don’t believe everything you hear. A credit-card marketer may offer you a zero percent credit card, said Cherry Hedges, financial education director for the Virginia Credit Union in Richmond. When you get the card, the disclosure statement may reveal an 18 percent APR.
# Don’t use it if you don’t like it. “Once they use the credit card, they’ve agreed to what is in the disclosure statement,” Hedges said. “See if you can get a better rate or cancel the card.”
# Miss payments and you’re a dead duck. “Even if you’re just a minute late, you possibly could be hit by much higher penalty rates,” said Linda Sherry, national spokesperson for San Francisco-based Consumer Action. Your rates could zoom from 18 percent to 32 percent. Worse, if one credit-card company raises your rate, another can, too. Sign up for payment alerts.
News Source : http://www.tricities.com/
Monday, September 8, 2008
Credit card proposal may get vote in Congress
Legislation reining in credit card practices may get vote this year as Congress returns
NEW YORK (Associated Press) - Deepening economic distress and concern over consumer debt could help legislation that would overhaul practices of credit card companies get voted on in Congress as lawmakers return this week from summer recess.
In the waning weeks of this Democratic-controlled Congress, with lawmakers looking to show consumer-friendly results to voters before the November election, there could be momentum for the credit card legislation _ more likely in the House than the Senate, backers of the proposal say.
"It's a sign that the lock that the credit card industry has had on Congress is loosening," said Travis Plunkett, legislative director for Consumer Federation of America. "I think there's a very good chance it will pass the House this month."
Yet some congressional aides say chances remain slim of passage in the short time remaining in the session, and that a bill may have to await the new year and new Congress.
The legislation has drawn the strong support of consumer groups and vigorous opposition by the banking industry.
Amid the stumbling economy, many consumers are using credit cards to pay the higher costs of groceries and gasoline, and Americans now are weighed down by about $900 billion in credit card debt, according to Federal Reserve figures.
A bill authored by Rep. Carolyn Maloney, D-N.Y., cleared the House Financial Services Committee in July and pointed toward the floor of the House. It would, among other things, require credit card issuers to give account holders 45 days notice of any increases in interest rates. Monthly bills would have to be mailed at least 25 days before the due date, up from the current minimum of 14 days, and fees could not be charged on the remaining interest-only balance of a customer who has paid their bill on time.
A similar yet more stringent Senate proposal, by Sens. Carl Levin, D-Mich., and Banking Committee Chairman Christopher Dodd, D-Conn., faces dimmer prospects because of the slimmer Democratic majority in that body.
Five big financial companies _ Discover Financial Services LLC, Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Capital One Financial Corp. _ issue around 80 percent of all U.S. credit cards, according to congressional investigators.
The financial institutions fiercely compete with each other and more than 6,000 other institutions that issue credit cards, the American Bankers Association says.
News Source : http://money.cnn.com/news/newsfeeds/articles/apwire/a67c758c66f6e7182f1a3d129d8cbc52.htm
NEW YORK (Associated Press) - Deepening economic distress and concern over consumer debt could help legislation that would overhaul practices of credit card companies get voted on in Congress as lawmakers return this week from summer recess.
In the waning weeks of this Democratic-controlled Congress, with lawmakers looking to show consumer-friendly results to voters before the November election, there could be momentum for the credit card legislation _ more likely in the House than the Senate, backers of the proposal say.
"It's a sign that the lock that the credit card industry has had on Congress is loosening," said Travis Plunkett, legislative director for Consumer Federation of America. "I think there's a very good chance it will pass the House this month."
Yet some congressional aides say chances remain slim of passage in the short time remaining in the session, and that a bill may have to await the new year and new Congress.
The legislation has drawn the strong support of consumer groups and vigorous opposition by the banking industry.
Amid the stumbling economy, many consumers are using credit cards to pay the higher costs of groceries and gasoline, and Americans now are weighed down by about $900 billion in credit card debt, according to Federal Reserve figures.
A bill authored by Rep. Carolyn Maloney, D-N.Y., cleared the House Financial Services Committee in July and pointed toward the floor of the House. It would, among other things, require credit card issuers to give account holders 45 days notice of any increases in interest rates. Monthly bills would have to be mailed at least 25 days before the due date, up from the current minimum of 14 days, and fees could not be charged on the remaining interest-only balance of a customer who has paid their bill on time.
A similar yet more stringent Senate proposal, by Sens. Carl Levin, D-Mich., and Banking Committee Chairman Christopher Dodd, D-Conn., faces dimmer prospects because of the slimmer Democratic majority in that body.
Five big financial companies _ Discover Financial Services LLC, Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Capital One Financial Corp. _ issue around 80 percent of all U.S. credit cards, according to congressional investigators.
The financial institutions fiercely compete with each other and more than 6,000 other institutions that issue credit cards, the American Bankers Association says.
News Source : http://money.cnn.com/news/newsfeeds/articles/apwire/a67c758c66f6e7182f1a3d129d8cbc52.htm
Tuesday, August 26, 2008
Apply: Application For a Mbna Zero Apr Credit Card
Whan it comes to credit card applications, charging it to the Plastic is a term which although prevalent doesn’t do justice to the service a credit card supplies. Generally speaking, it is the ease with which we can all now obtain credit which has helped fuel the economy all around the world. That’s why a lot of businessmen, young professionals, big bankers and even well-off students are lining up inside their trusted banks, credit card application in one hand and the need to have instant credit on the other.
Who can really be blamed when this is now the norm in society to have at least one credit card even though it means that eventually, cash will become extinct. Great care is required when you have a credit card as it is an easy service to misuse and misunderstand.
source : http://www.google.co.uk/news?
Who can really be blamed when this is now the norm in society to have at least one credit card even though it means that eventually, cash will become extinct. Great care is required when you have a credit card as it is an easy service to misuse and misunderstand.
source : http://www.google.co.uk/news?
Wednesday, August 20, 2008
Visa Piloting Electronic Alert Program to Help Identify Suspicious Transactions
Visa announced yesterday the launch of a pilot program for delivering real-time alerts to consumers based on triggers that may indicate when a credit card transaction is fraudulent. The alerts identifying potentially suspicious activity would be sent to consumers via e-mail or cell phone text messages.
Visa will be working with a number of major banks during the testing of the system, including PNC Bank, SunTrust Bank, U.S. Bank, Wachovia, and Wells Fargo in the United States, and Royal Bank of Canada, TD Bank Financial Group, and Vancity in Canada. The test will include up to 2,000 total credit card customers who will receive the alerts.
The program would not alert a consumer after every credit card transaction, but only after those meeting certain criteria that might raise suspicion. Those criteria could include transactions that exceed an amount the card holder has chosen as a “trigger”, transactions from outside the customer’s home country, Internet or telephone transactions, or a cash withdrawal from an ATM machine.
Customers receiving an alert could then either verify the transaction in question or contact the bank to stop further transactions on the card.
Source : www.news.google.com/Tuesday, August 19, 2008
Target to Slow Expansion as Net Falls
Discount retailer Target Corp. will curb store expansion and tighten credit-card terms after reporting fiscal-second-quarter net income fell 7.6% because of credit-card write-offs and weak sales.
The Minneapolis store chain said profit from credit-card operations fell sharply for the fiscal quarter ended Aug. 2 as a result of write-offs and the sale earlier this year of a half-interest in its credit-card receivables.
The operation, which had been delivering strong profit, reported income tumbled 65% to $74 million, from $213 million a year earlier. In May, Target sold a half-interest in its card receivables to J.P. Morgan Chase & Co. for $3.6 billion.
The company said it is slowing the growth of its credit-card portfolio and revising credit terms to counter higher bad-debt expense. Credit losses this year will run between 8% and 9% of loans, higher than its spring forecast, and higher than the 5.9% of loans in the last fiscal year.
It said growth in credit-card receivables, which increased at an about 27% rate in the second quarter, will moderate into the teens by the fourth quarter.
Target has successfully managed inventories and labor expense controls to avoid profit-sapping mark downs and expenses, Gregg Steinhafel, chief executive, told investors Tuesday. Retail gross margin, a measure of profitability, rose slightly in most areas, he said.
Net declined to $634 million, or 82 cents a share, from $686 million, or 80 cents a share, in the year-earlier quarter. Per share profit increased as a result of stock repurchases that reduced the number of shares outstanding.
Revenue rose 5.8% to $15.47 billion. Retail sales, excluding credit-card revenue, rose 5.6% to $14.97 billion, from $14.17 billion boosted by new store openings. Sales at stores open at least a year, a measure of retail-market share, declined 0.4% in the quarter.
source : http://www.google.com/news?
The Minneapolis store chain said profit from credit-card operations fell sharply for the fiscal quarter ended Aug. 2 as a result of write-offs and the sale earlier this year of a half-interest in its credit-card receivables.
The operation, which had been delivering strong profit, reported income tumbled 65% to $74 million, from $213 million a year earlier. In May, Target sold a half-interest in its card receivables to J.P. Morgan Chase & Co. for $3.6 billion.
The company said it is slowing the growth of its credit-card portfolio and revising credit terms to counter higher bad-debt expense. Credit losses this year will run between 8% and 9% of loans, higher than its spring forecast, and higher than the 5.9% of loans in the last fiscal year.
It said growth in credit-card receivables, which increased at an about 27% rate in the second quarter, will moderate into the teens by the fourth quarter.
Target has successfully managed inventories and labor expense controls to avoid profit-sapping mark downs and expenses, Gregg Steinhafel, chief executive, told investors Tuesday. Retail gross margin, a measure of profitability, rose slightly in most areas, he said.
Net declined to $634 million, or 82 cents a share, from $686 million, or 80 cents a share, in the year-earlier quarter. Per share profit increased as a result of stock repurchases that reduced the number of shares outstanding.
Revenue rose 5.8% to $15.47 billion. Retail sales, excluding credit-card revenue, rose 5.6% to $14.97 billion, from $14.17 billion boosted by new store openings. Sales at stores open at least a year, a measure of retail-market share, declined 0.4% in the quarter.
source : http://www.google.com/news?
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