Credit and Prepaid Card News
The latest news on the credit card and prepaid card industry from the Center for Responsible Lending.
- 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.
- Push to Ban Credit Card Surcharges Sputters
American Banker 11 Jul 2013
Legislation that would prohibit merchants from charging customers to pay with credit cards has stalled in about 15 states, marking a setback for credit card issuers and a victory for merchants.
- Woodstock Institute Defends CFPB Data Depot
Housing Wire 10 Jul 2013
The Consumer Financial Protection Bureau is catching flak from some corners because of its efforts to gather consumer financial data. While the agency is collecting information for the purpose of shaping policy to help protect the public, some view the campaign as a privacy issue.
- Swipe-Fee Battle Moves to States as U.S. Banks Fight Surcharges
Bloomberg 09 Jul 2013
Banks and payment networks are calling on state lawmakers to prevent retailers from imposing surcharges for customers who pay with credit cards instead of debit cards or cash. Surcharges already are banned in Utah, and a similar law may soon be passed in New Jersey.
- Credit Unions Raising Overdraft Fees Faster Than Banks, Report Says
Washington Post 08 Jul 2013
Although the overdraft fees charged by credit unions are lower than those charged by banks, a new report from Moebs Services, based on overdraft data from close to 3,000 banks and credit unions, reveals that credit unions have increased overdraft fees at a faster rate.
- Consumers Break Out the Credit Cards in May
USA Today 08 Jul 2013
A new report from the Federal Reserve shows an 8.3 percent annualized gain in consumer credit to a seasonally adjusted $19.6 billion in May, indicating a rise in consumer confidence as the job market picks up steam.
- Credit Card Delinquencies Lowest Since 1990
CNNMoney 07 Jul 2013
A new report from the American Bankers Association (ABA) shows a decline in delinquencies on bank-issued credit cards to 2.41 percent in the first quarter, marking the lowest level in more than two decades. The delinquency rate is down significantly from a record of 5.01 percent in 2009 and the 15-year average of 3.87 percent.
- OCC Pressures Banks to Clean Up Card Debt Sales
American Banker 03 Jul 2013
Already under scrutiny by state attorneys general over sales of defaulted credit card debt, big banks now may be facing an even more pressure from the federal Office of the Comptroller of Currency. Earlier this year, the OCC began issuing its bank examiners a four-page set of "best practices" to be used in assessing banks' sales of delinquent consumer debts to third parties.
- Traveling Abroad This Summer? Watch Out for Bank Fees
Fox News Latino 02 Jul 2013
U.S. travelers could end up paying extra, unexpected fees on their debit or credit cards, including for transactions that occur abroad and withdrawals at out-of-network ATMs. The biggest banks here charge customers as much as $3 to use an out-of-network ATM in the country and as much as $5 to use one beyond U.S. borders.
- Downfall of Subprime Cards Spawns Opportunity
American Banker 28 Jun 2013
he subprime credit card market has plummeted in the past six years, with credit card issuers in the first quarter sending out just 21 million direct mailings for cards that carried fees and offered no rewards.