A new report found American consumers have avoided more than $9 billion in over-limit fees and saved more than $7 billion in late fees since the implementation of the Credit Card Accountability Responsibility and Disclosure Act (CARD Act).
CardWeb’s CardPixes database of more than 7,000 card images today features the Webster Bank Visa Signature Bonus Rewards card. The card is issued by Elan Financial Services.
CardWeb’s CardPixes database of more than 7,000 card images today features the WalMart MasterCard. The Walmart MasterCard is issued Synchrony Bank.
Fico announced the general availability of Fico Debt Manager solution 9.5, with a host of new features designed to help collectors improve productivity while ensuring they are compliant with new regulations. The solution enables collections groups to reduce operating costs, achieve score-driven increases in amounts collected, adjust to changing regulations and increase customer satisfaction. FICO Collection Scores are now available out-of-the box, giving users the ability to assign the right treatment strategy and collector to each individual account, and thereby helping to improve performance. Typical operations that adopt FICO Collections Scores see a three to five percent lift in collections. FICO Risk Intervention Manager clients report being able to handle two to four times the volume at the same cost with better right-party contact rates and improved customer satisfaction.
The average consumer will spend $7041 on holiday related purchases. Debt consolidation loans represent 51% of all loans on Prosper, and have shown consistent growth over the past 5 months. Peer-to-peer (P2P) lending can replace high credit card interest rates and constantly changing monthly payments with lower rates and fixed, predictable payment terms. Data shows that even as consumers were preparing to spend money on gifts for this year, more than 14.1 million of them were still paying off holiday-related spending from last year, up from 13.6 million in 20092. Interest rates on Prosper.com start at 6.59%4 APR for best borrowers. Fixed rates range from 6.59% to 35.84% APR.
Ink from Chase business card portfolio launched its new rewards program and enhancements to the Ink Classic and the Ink Cash cards. The rewards program offers new customers rapid accumulation of cash or points customized for the small business owner, featuring five points or five percent cash back per dollar spent on office supplies, telecommunication services and cable services. With “Ink Classic,” the new points program will allow customers to earn points quicker with five points per dollar spent on the first $25,000 in annual spend on office supplies, telecommunication services and cable services; two points per dollar spent on the first $25,000 in annual spend on fuel and lodging; and one point per dollar spent on all other card purchases, with no limits. Meanwhile, “Ink Cash” will allow customers to earn cash back as with five percent cash back on the first $25,000 in spend annually on office supplies, telecommunication services and cable services; 2% cash back on the first $25,000 in spend annually on fuel and dining; and 1% cash back on all other card purchases, with no limits.
Equifax and Fico partnered to enhance the latter’s “Triad Customer Manager,” integrating it with the former’s “Customer Insights” service. This first solution from the companies’ expanded partnership will allow lenders and card issuers to improve predictions of customer risk and behaviour and make more profitable credit management decisions. Equifax’s “Customer Insights” offering, banks, card issuers and retailers using “FICO TRIAD” Customer Manager can easily integrate a comprehensive range of customer-level data into their credit decision strategies. With the FICO “TRIAD Customer Manager,” it lets financial organisations improve credit decisions on which credit offers to make to which customers, what over-limit transactions to authorise, how to treat early-stage delinquencies in collections, and how to manage customers’ credit limits.
Consumers saw an average bank overdraft fee of $33.36 in 2009. For those
who bank with institutions with card portfolios of less than
$100million, they had to pay an average of $30.21 for each overdraft.
Meanwhile, those who elected to go with a larger institution with
portfolios of greater than $100million, were doling out an average of
$36.50 in fees. US over-limit 2009 card fees on portfolios greater than
$100million averaged $1 higher than in 2008, having peaked in September
at $38.01. Compared to September 1999, over-limit fees averaged $24.12.
The peak average of $24.96 in 1999 was in December. For bank portfolios
of less than $100million, over-limit fees in 2009 peaked in December at
$33.99 after having not topped the $30 mark until August. In 1999, the
overdraft fee high was $18.63, also in December. With Regulation E in effect, issuers expect 30% of
consumers to opt in to overdraft services. Large banks expect 20 to 40% of
their customers to opt in, while the smaller banks
expect 70% of their customers to opt in.
$100mm
JAN: $28.05 $35.92
FEB: $28.35 $35.92
MAR: $28.80 $35.93
APR: $28.83 $35.95
MAY: $28.90 $35.98
JUN: $29.30 $36.10
JUL: $29.48 $36.12
AUG: $31.35 $37.75
SEP: $31.66 $38.01
OCT: $31.56 $36.58
NOV: $32.34 $36.90
DEC: $33.99 $36.91
SOURCE: Carddata.com
MBNA Canada Bank is notifying its customers of several changes to the terms and conditions of their account, effective beginning August 7.
MBNA is one of the first banks in Canada to announce that it is adopting the “high to low” method of payment allocation. That is, payments made on an MBNA credit card account will go towards paying the balance with the highest interest rate first, resulting in customers paying less interest over time. This applies to the minimum payment amount and any amounts over the minimum payment, which is better for the customer and is over and above the regulatory requirement. Other changes include: improved statement and simplified account agreements, increased minimum payments and the elimination and streamlining of certain fees. MBNA will implement these business changes at the same time that it implements the Federal Government’s new Credit Business Practices Regulations and amendments to the Cost of Borrowing Regulations, which come into force on September 1.
Pentagon Federal Credit Union (PenFed) has introduced its “PenFed Promise Card,” offering no fees and a low rate for purchases. The “PenFed Promise Card” features a 7.49% introductory purchase APR for the first 36 months, then adjusted to a variable rate of Prime (currently 3.25%) plus 6.74%. Absolutely free of the standard industry fees that traditionally accompany most cards, the “PenFed Promise Card”charges no late fees, over-limit fees, balance transfer fees, cash advance fees, foreign transaction fees, returned check fees. Pentagon Federal Credit Union, established in 1935, has more than 950,000 members and assets in excess of $14.5 billion, and provides worldwide service to Army, Air Force, Coast Guard, Department of Defense, and Department of Homeland Security personnel.
With new credit card rules in place the top issuers launched more consumer and business friendly products in 2009. Among the best new card products of the year is a truly “green” card and a debit card with discounts for teens. CardTrak.com has compiled a list of the ten best new cards of 2009. And the winners are: 1. Gconomy Visa; 2. Chase Ink; 3. BofA Basic Visa; 4. Citi Forward; 5. Chase Sapphire; 6. AmEx Gold Premier Rewards; 7. Discover Current; 8. U.S. FlexPerks Visa; 9. Priceline Visa; and 10.BBVA Compass ClearPoints. The “Gconomy Visa” offers points for each purchase, donates a portion of every purchase to a “green” schools program, and rewards households for recycling. The Chase “Ink” card is a new business card portfolio that includes four distinct cards and marks the issuer’s first introduction of a pay-in-full charge card. The “BankAmericard Basic Visa” has simplified rates and terms offering the same APR for purchases, balance transfers and cash advances. The “Citi Forward” credit card lowers the purchase interest rate by a quarter percent when cardholders use credit wisely and rewards them with points has emerged each billing period for paying on time and staying under the credit line has emerged. The Chase “Sapphire” is targeted at the upper 15% of U.S. households in income and offers no preset limit, offers personalized customer service and is linked Chase’s “Ultimate Rewards” program. The American Express “Premier Rewards Gold Card” offers the opportunity to earn triple “Membership Rewards” points on airfare purchases, double points on gas and grocery purchases, and one point for all other purchases. The Discover “Current” card isa debit card for teens that offers members-only in-store coupons and online discounts at hundreds of merchants. U.S. Bank “FlexPerks Travel Rewards” earns double points for spending on gas, groceries or airline purchases – whichever is highest for the customer during the month as well as double points on most cell phone related charges. Barclays launched the “priceline.com Visa” enables cardholders to use their points as soon as they post to the account (typically within two days). Sunbelt-based BBVA Compass introduced the “BBVA Compass ClearPoints” credit card that features clear, simple and transparent terms and conditions, as well as pricing terms that will never change.
For more details visit CardTrak.com.
The U.S. House overwhelmingly approved legislation that
would push up the date of credit card reforms scheduled for next year to be effective immediately upon the signing of the bill. By a vote of 331-92 the H.R. 3639, the “Expedited CARD Reform for Consumers Act of 2009” was passed. The Senate has also taken up a similar measure but it appears, at this point, unlikely to pass. The “Credit CARD Act” had three staged implementation dates: August 2009, February, 2010, and August, 2010. “H.R. 3639” moves up the remaining dates by which banks and credit card issuers would have to comply and applies to the largest card issuers that control over 80% of the credit card market. The House also approved an amendment, offered by Carolyn McCarthy (D-NY) and Betsy
Markey (D-CO), permitting card issuers that adopt a moratorium on interest rate increases on current balances and new balances incurred before Feb. 22 to be exempt from the earlier effective date for a provision that requires an issuer to apply customer payments to the highest rate balance. The bill exempts small credit card issuers and
gift card providers. However, both would have to comply with the later
deadlines previously laid out in the “Credit CARD Act.”