Credit and Prepaid Card News
The latest news on the credit card and prepaid card industry from the Center for Responsible Lending.
- 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.
- Millennials Big Fans of Prepaid Cards, Payday Loans
USA Today 13 Jun 2013
A Think Finance survey of more than 1,000 Millennials, ages 18-34, reveals that they are willing to pay for convenience when it comes to financial products. Although 92 percent of respondents use...
- U.S. Bank Overdraft Settlement Drags On
Minneapolis Star Tribune (MN) 11 Jun 2013
Almost a year ago, U.S Bank agreed to pay $55 million to settle accusations that it overcharged customers by reordering debit card and ATM overdrafts by size rather than when the overdraft occurred...
- Beware of Credit Card Checkout Fees
wfdd.org 10 Jun 2013
Although credit cards can be convenient, help build credit, and earn rewards, users also need to keep an eye out for a new surcharge. Under a 2012 settlement with Visa, MasterCard...
- Banks Seen as Aid in Fraud Against Older Consumers
New York Times 10 Jun 2013
Federal authorities say it is an all-too-frequent occurrence that reputable U.S. banks are used as gateways between fraudulent Internet merchants and their victims—often seniors...
- A.G. Targets Exorbitant Credit Card Rates
Westfair Online 04 Jun 2013
New York State Attorney General Eric T. Schneiderman reached a settlement agreement with GE Capital Retail Bank and its CareCredit LLC unit. The agreement requires new protections for consumers...
- Credit-Card Option That Travelers Should Avoid
Seattle Times 22 May 2013
With a service called "dynamic currency conversion," overseas merchants can process a credit card charge in the cardholder’s native currency rather than in the merchant’s currency; but it could cost travelers extra. Companies that allow merchants to run DCC transactions promise increased revenue, because merchants can charge for making the conversion...
- Credit Card Debt Causes People to Forgo Medical Care
CreditCards.com 21 May 2013
New research out of the University of Michigan suggests that credit card debt prevents ill borrowers from seeking treatment. More than 64 percent of study participants who were sick but had not visited a healthcare provider because of the cost were buried under credit card debt, and almost 58 percent of sick people who declined to seek medical attention were already burdened with medical bills...
- Households Cut Overall Debt, But Student Loans Jump
Wall Street Journal 14 May 2013
U.S. households lowered their debt loads during the year's first quarter, although student loan borrowing continued to climb, according to a report from the Federal Reserve Bank of New York. Total indebtedness fell by 1 percent from the previous quarter to $11.23 trillion. Total mortgage debt was down to $7.93 trillion, from $8.03 trillion in the three months prior; while credit card balances fell by $19 billion to $660 billion. Auto loans, however, were up by $11 billion; and student loan borrowing snowballed by a staggering $20 billion...
- Card Add-on Products Stage a Comeback
Fox Business 08 May 2013
Credit card "add-on" products suffered from regulatory restrictions last year; but analysts say they could bounce back, with tighter marketing pitches and lower price...
- Credit Cards Are Offering Lower Interest Rates and Higher Cash Back Bonuses to Those With Good Credit
New York Daily News 17 Apr 2013
Due to an improving economy and more competition among credit card issuers, card holders with good credit are being rewarded with lower interest rates and more generous sign-up bonuses, according to a new report from CardHub.com. For those with the best credit, the average interest rate was 12.79 percent in the first three months of 2013, down 1.69 percent from the last quarter of 2012...
- N.Y. AG Lawsuit Says Credit Card Scam Targeted Union Members
Reuters 16 Apr 2013
New York Attorney General Eric Schneiderman has sued Dallas-based Union Workers Credit Services, claiming that it bilked union workers with false credit card offers. The lawsuit, filed April 12, accused the company of targeting union members with a pre-approved platinum credit card, for a fee...
- Paying Your Taxes by Credit Card? Beware the Fees
Salt Lake Tribune (Utah) 10 Apr 2013
Filers who wind up with a tax bill instead of a return have the option of using plastic to settle up with the IRS. Although doing so is perfectly safe, it is not free...
- Senators Seek to Cap Interest Rates on Consumer Loans
The Hill 09 Apr 2013
Senate Majority Whip Dick Durbin (D-Ill.) and several other Democratic colleagues have proposed a bill to set an interest rate and fee limit of 36 percent for all open- and closed-end consumer credit transactions...
- Credit Card Delinquencies Reach 18-Year Low
CNN Money 02 Apr 2013
Delinquencies on credit cards issued by banks hit the lowest point in 18 years after plummeting to 2.47 percent in the fourth quarter, reports the American Bankers Association (ABA). The decline throughout 2012 sends a signal that consumers are attempting to get debt under control...