Credit and Prepaid Card News
The latest news on the credit card and prepaid card industry from the Center for Responsible Lending.
- 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.
- Payroll Debit Cards on the Rise, And So Are Hidden Fees
AOL Jobs 27 Jun 2013
A growing number of employers -- particularly those with seasonal or transient workers -- are using debit cards to pay the help. A 2012 report from the Aite Group estimated that $42.8 billion dollars will be loaded onto these cards this year...
- Check Cashing Shops Expensive, Banks Better, According to Massachusetts Division of Banks Study
The Republican (MA) 24 Jun 2013
A report from the Massachusetts Division of Banks concludes that signing up for a checking account at a bank or credit union is a more affordable alternative for consumers than using check cashing shops, which could charge them $200 to $1,300 in annual fees for services that would cost nothing -- or next to nothing -- at a traditional financial institution.
- 5 Secrets Credit Card Companies Don't Want You to Know
Fox 7 (Austin, Tex.) 20 Jun 2013
Credit card holders can reduce unnecessary penalties by examining the fine print of their user agreements. Many cards allow for interest-free purchases if they are repaid within a grace period; but spenders should know that providers are abbreviating that period from 30 days to 20-25 days, or eliminating it completely.
- More Young People Ditching Credit Cards
New York Times 20 Jun 2013
In 2012, 16 percent of adults aged 18 to 29 did not have a single credit card -- up from 9 percent in 2005. That is one of the findings of FICO's new analysis of data on millions of consumers...
- Credit CARD Act: The Next Generation
CreditCards.com 18 Jun 2013
The Credit CARD Act of 2009 helped to curtail consumers' penalty fees and surprise interest-rate increases, but the law may be due for an update already due to new consumer complaints.