Credit and Prepaid Card News
The latest news on the credit card and prepaid card industry from the Center for Responsible Lending.
- Nebraska Bill Targets 'Hold' Charges on Debit Cards
Associated Press 24 Feb 2014
The Nebraska Legislature is considering legislation that would force hotels, gas stations, and restaurants to notify customers if they place temporary hold charges on their debit cards.
- U.S. Studies College Card Regulations
Wall Street Journal 21 Feb 2014
The U.S. Department of Education in coming months will propose new consumer protections for college students who receive financial aid through school-branded debit and prepaid cards, if consensus is ...
- Late Payments on Credit Cards Go Up
Associated Press 19 Feb 2014
U.S. consumers took on more credit card debt and made more late payments in the final quarter of 2013, when many consumers use their cards and suspend timely payments in order to supplement holiday ...
- For Many, Credit Card Debt Outweighs Savings
CNBC.com 18 Feb 2014
A new survey from Bankrate.com finds that 28 percent of Americans say they owe more in credit card debt than they have in their emergency funds or savings accounts.
- Prepaid Cards Often Used to Manage Funds
Boston Globe 08 Feb 2014
Prepaid debit cards are widely considered an alternative for consumers who do not qualify for traditional checking accounts, but the Pew Charitable Trusts has discovered that most Americans who use ...
- Why You Should Keep Your Debit Card at Home
Washington Post 07 Feb 2014
Hearings on Capitol Hill in response to recent retail data breaches shone a spotlight on the unequal treatment of debit cards compared to credit cards.
- T-Mobile Enters Prepaid Card Market
Washington Post 22 Jan 2014
T-Mobile introduced a prepaid card on Jan. 22, following other retailers like Wal-Mart, Walgreens, and Target into the banking world.
- 'No-Interest-Now' Deals Can Be Risky
USA Today 26 Dec 2013
Many shoppers can save money in the long run by avoiding zero-percent, "no-interest-now" deals during the busy holiday season. Odysseas Papadimitriou, founder and CEO of the personal finance websites CardHub and WalletHub, notes that deferred-interest-rate deals are an extremely popular offering right now. Consumer watchdogs, however, warn that there are many ways for shoppers to end up paying more than what they anticipated under these deals.
- Amex Fined After Staff Misled Customers
Financial Times 25 Dec 2013
American Express (Amex) has agreed to $75.7 million in fines and reimbursements to customers after regulators discovered that its sales staff misled customers about the benefits of many credit card insurance products.
- Signature Cards More Prone to Fraud
Fox Business 20 Dec 2013
Credit counselors say credit card cash advances should only be a last resort, and their advice is backed by a new CreditCards.com survey of cash advance rates and fees on the top 100 credit cards.
- How Strict Limits on Debit-Card Fees Created More Free Checking
Bloomberg Businessweek 11 Dec 2013
Five years after the financial crisis, researchers now have enough data to better understand how reforms to consumer finance have produced intended and unintended consequences. A recent paper found that the 2009 CARD Act, which banned some profitable but abusive credit card practices, has saved consumers $20.8 billion a year. Banks argued that it also tightened access to credit, but a new analysis from the Federal Reserve Bank of Kansas City suggests that caps on swipe fees for debit cards have widened consumer access to free checking accounts.
- Consumer Bureau Hits Medical Financing Company CareCredit With $34.1 Million Action
Washington Post 11 Dec 2013
The Consumer Financial Protection Bureau (CFPB) has ordered medical financing company CareCredit, an arm of General Electric, to pay $34.1 million for providing inadequate disclosures and using deceptive enrollment practices. The funds will help reimburse more than 1.2 million CareCredit customers who incurred credit card penalties and fees since 2009.
- Credit Card Delinquency Rate Declines
Central Valley Business Times (CA) 20 Nov 2013
Figures compiled by TransUnion LLC show that both the credit card delinquency rate and the average credit card debt per borrower declined on a annual basis during the third quarter. Card delinquency fell to 1.36 percent, down 14 basis points from 1.50 percent a year earlier.