Credit and Prepaid Card News
The latest news on the credit card and prepaid card industry from the Center for Responsible Lending.
- JPMorgan Fined $389 Million for Deceptive Credit Card Practices
Washington Post 20 Sep 2013
The Office of the Comptroller of the Currency (OCC) on Thursday hit JPMorgan Chase with $389 million in penalties for duping millions of customers into buying expensive and unnecessary services when they signed up for credit cards.
- Banks Probe Regulatory Limits of Credit Card Add-Ons
American Banker 17 Sep 2013
American Express, Wells Fargo, and Citigroup all seem to be testing how far they can go with credit card add-on services, even though regulators are preparing for another round of crackdowns on these controversial products.
- FTC Tussles With a Florida Telemarketer -- Again
Cleveland Plain Dealer (OH) 10 Sep 2013
Brett Fisher, whom the Federal Trade Commission (FTC) has just hit with a $25 million penalty for preying on consumers, is no stranger to the agency. It previously sued the Florida man and his company at the time, Group One Networks, over an advance-fee credit card scheme. A January 2010 settlement drew a $17 million fine -- of which the defendant was able to pay only $21,000 -- and prevented Fisher, among other restrictions, from marketing interest-rate reduction services. Undeterred by his legal loss, Fisher reportedly launched a new scheme almost immediately.
- Regulators Ramping Up Fair Lending Enforcement
Credit Union Times 09 Sep 2013
With the National Credit Union Administration and the Consumer Financial Protection Bureau (CFPB) zeroing in on Fair Lending laws and Home Mortgage Disclosure Act (HMDA) data collection this year, credit unions can expect to see additional rules and exams in 2014.
- A Secret That Credit Card Companies Don't Want Pa. Debtors to Know
Johnstown Tribune-Democrat 02 Sep 2013
Under Pennsylvania law, credit card companies must take action on a debt within four years. After that, the law dictates, the debt is no longer collectible. State Rep. Pete Daley (D-Allegheny) has proposed legislation that would force collection agencies to tell consumers if the debt they are pursuing is too old to legally claim and also would require the agencies to put in writing the amount they claim the consumer owes.
- Many Customers Don’t Understand Their Credit Card Rewards
Credit.com 28 Aug 2013
More than one-third of credit card users are either unaware of the benefits connected with their cards or do not completely understand them, according to the J.D. Power 2013 U.S. Credit Card Satisfaction Study.
- Zero Worship: Credit-Card Firms Compete With No-Interest Transfers
Wall Street Journal 27 Aug 2013
U.S. credit card companies, eager for new customers, are flooding mailboxes and email inboxes with offers that allow new cardholders to transfer their existing card balances from other institutions with zero interest for up to two years.
- Direct Mail Offers for Credit Cards Are on the Rise
Pittsburgh Post-Gazette 26 Aug 2013
Direct-mail solicitations from credit card issuers are on the rise this year, up by 22 percent through June compared with the same stretch of 2012, according to the market research company Mintel.
- Many Americans Don't Understand Fine Print of Credit Cards
Los Angeles Times 22 Aug 2013
A J.D. Power survey of 14,000 credit card users found that just 47 percent of those polled completely understand their credit card terms, and only 59 percent completely understand their cards' reward programs
- Ranking the States: Credit Card Debt
Washington Post 20 Aug 2013
Data compiled by credit rating agency TransUnion shows that Alaska has the highest rate of credit card debt in the United States, owing an average of $6,910 -- nearly $2,000 more than the national average.
- Credit Card Debt and Overdue Payments Both Low
Associated Press 14 Aug 2013
American consumers are doing a better job of paying their credit card bills on time, bringing the rate of late payments to the lowest level since 1994, according to credit reporting agency TransUnion.
- First Horizon, Sovereign Bank Introduce Simplified Fee Disclosures
American Banker 02 Aug 2013
Sovereign Bank in Boston and the First Tennessee unit of Memphis-based First Horizon National have joined more than 20 rival institutions in making it easier for customers to understand the terms and fees on their checking accounts. Both banks were near the bottom of Pew Charitable Trusts' ratings last week of account disclosures; but both have now adopted Pew's model, plain-language disclosure practices.
- CRL Report Targets Bank, CU Overdraft Fees
Credit Union Times 01 Aug 2013
Banks and credit unions are still charging abusive overdraft fees, the Center for Responsible Lending (CRL) declares in its report, “High Cost Overdraft Practices.” In 2010, the FDIC suggested to financial institutions that more than six overdraft charges per year is excessive.
- Judge Rejects Fed’s Cap on Debit Card Fees
New York Times DealBook Blog 31 Jul 2013
Richard J. Leon, a district court judge in Washington, has ruled that the Federal Reserve failed to follow lawmakers' intention of capping fees that banks earn from consumers' use of debit cards.
- Blog: Over a Million Are Denied Bank Accounts for Past Errors
New York Times 30 Jul 2013
Institutions like Bank of America, Citibank, and Wells Fargo insist that the use of databases that record individuals' banking mistakes, such as bounced checks or minor overdrafts, help them weed out risky customers and fight fraud.
- ATM Misusers Get Most Bang for Overdraft Fee Bucks
NorthJersey.com 29 Jul 2013
A new study commissioned by the Center for Responsible Lending (CRL) examined data from 2011 to see how banks apply overdraft fees to various types of transactions. Overdrafts from debit card purchases generated a median fee of $1.75 for every dollar overdrawn.
- Consumers Rack Up $14.3 Billion in 'Gray' Charges
USA Today 25 Jul 2013
A new study commissioned by BillGuard reveals that U.S. consumers are individually paying hundreds of dollars in extra charges every year for services they never wanted or intended to sign up for.
- ‘Unbanked’ Minnesotans Hurt Most by Predatory Lending
MinnPost.com (MN) 24 Jul 2013
More than 360,000 Minnesota households that are “unbanked” or “underbanked” do not have access to reasonably priced, basic financial services, according to a 2011 survey by the Federal Deposit Insurance Corporation.
- Big Banks Will Lose Deposits, Revenues Over Fees: Survey
American Banker 19 Jul 2013
The largest U.S. retail banks could lose $92 billion in deposits and $5.1 billion in revenues in the next year if consumers their defection to smaller banks and credit unions. Although customer frustration has declined in the last two years, 9.7 percent of account holders at large banks still might move their money to other institutions over the next 12 months, according to a study by Connecticut-based consulting firm cg42 of 3,600 customers at the top 10 retail banks.