The Network Branded Prepaid Card Association (NBPCA) and NetSpend urged the CFPB to show restraint in its final rule and avoid imposing overly broad restrictions on prepaid accounts, which could destroy the market.
Consumer debt in the UK hit a seven-year high during the fourth quarter topping £1.25 billion. Borrowing on credit cards, loans and overdrafts by Brits is now growing at an annual rate of 6.9%.
While most segments of the payment card issuing business are saturated with targeted products, there remains a potentially lucrative market segment that has not been fully developed. The “Near Prime” segment represents new card account applicants who live on the border of becoming prime, but they are just not yet there.
Paysafecard.com now offers a prepaid MasterCard that provides paysafecard customers with an even greater range and choice of where they can pay. The card is topped up with paysafecard credit to offer both the advantages of a prepaid system combined with the strength of a credit card accepted worldwide. This innovative product is now available to all customers for paying both online and offline at millions of shops. Thanks to paysafecard, even those without a bank account now have access to a credit card. paysafecard MasterCard is only topped up with paysafecard, which is available at local sales outlets such as petrol stations and newsagents. paysafecard MasterCard is then available as a physical card topped up with this amount and ready to use everywhere in the world MasterCard is accepted: This includes shops, hotels and restaurants, as well as online vendors. Plus, it can be used to make cash withdrawals from any ATM. paysafecard MasterCard can be topped up with paysafecard at any time.
The Financial Conduct Authority (FCA) has confirmed the final rules that will govern the consumer credit market which will result in changes for how payday lenders and debt management companies treat their customers. The FCA will take a tough approach to consumer credit with stronger powers to clamp down on poor practice than the previous Office of Fair Trading regime. Our supervision of firms will be hands on and we will closely monitor how providers treat their customers, in particular those operating in higher risk sectors such as credit cards, debt management and payday. We will respond quickly to any issues that are identified and there will be swift penalties for any firm or individual found not to be putting consumers’ interests first, including possible enforcement action and consumer redress. The biggest changes come for payday lenders and debt management companies, which include limiting the number of loan roll-overs to two; restricting (to two) the number of times a firm can seek repayment using a continuous payment authority (CPA); a requirement to provide information to customers on how to get free debt advice; and requiring debt management firms to pass on more money to creditors from day one of a debt management plan, and to protect client money.
BS Citizens Financial Group, Inc. announced the launch of Bank Better, a company-wide program to make banking simple, clear and personal for Citizens Bank and Charter One customers. Bank Better launches with a signature approach to overdrafts — no overdraft fee for transactions of $5 or less – and several other significant updates to the bank’s offerings.This feature applies to an unlimited number of transactions of $5 or less. Replacement of a tiered system of overdraft fees with a simple flat fee of $35 per item for overdrafts and returned items greater than $5. There are no changes to Sustained Overdraft Fees, which apply when an account is overdrawn by any amount, for three or more consecutive days. Complete overdraft policies will be available online starting November 8 when the simplified policies take effect.
Akimbo remittance is now accepting enrollments. Combining electronic money transfers with the Akimbo Visa Prepaid Debit Card, users can send funds instantly for use at ATMs and POS anywhere Visa is accepted. Akimbo also enables sharing via Facebook, email, and text (SMS). The recipient must enroll for an Akimbo Card to collect the money, but once the account is created they are sent a pre-loaded card. Akimbo’s iPhone app also lets you add photos, notes, and ratings to purchase transactions. Akimbo provides more than just convenient money transfers. At its core, the Akimbo Card is a full service bank account alternative, offering direct deposit capabilities, transfers to and from other bank accounts, and even bill pay functionality.
Compass Plus electronic payment solutions and retail banking systems has completed scalability and performance tests on HP servers for their “TranzAxis” Open Development Banking Platform. A specialist, integrated platform created for the development and support of cards and payments, transaction switching, retail banking and other systems and applications in the domain linked to the automation of retail banking activities, “TranzAxis” was tested through a simulated issuing and acquiring setup that required it to drive 20,000 terminals (10,000 ATMs and 10,000 POS devices). TranzAxis also acted as an issuing system that included 10 million accounts with overdrafts and 10 million cards linked to them. The platform reached a sustained peak of 1066 transactions per second (TPS) during testing and remained stable at that high capacity.
DataArt software development firm completed its Kindle Fire mobile banking application for Plastyc for “UPside” Visa cardholders, which can now can be downloaded from Amazon. The new Kindle Fire application has been designed to optimize the tablets’ 7-inch screen resolution and provides a range of services for personal banking. These services include new account activation, signing up for direct deposit, redeeming cash back points, bill payment, funds transfers, issuing paper checks and balance checking, transaction history. Users can also tap into MoneyPak retail locator searchable by zip code.
The law firm of Baron and Budd is investigating excessive bank overdraft fees charged by regional banks. Through the firm’s work on national litigation concerning allegedly manipulative bank overdraft fees practices, Baron and Budd has exposed an overdraft fee charging scheme perpetrated by large national banks, such as Bank of America and JPMorgan Chase, designed to maximize the overdraft fees charged. Through a system designed to maximize the overdraft charges, usually $30 to $35 each, the banks reap huge profits. According to one media report, overdraft fee revenue reached an all-time high of $37.1 billion in 2009, and in 2011 alone, banks reported $29.5 billion in profits from overdraft charges.
Michael R. McCoy has been appointed Chairman of the Board of Directors and Chief Executive Officer with BillMyParents payment solutions. Having most recently served as the President and Head of Wells Fargo Consumer Credit Cards, McCoy’s appointment follows a series of high profile marketing campaigns targeting parents of teens and tweens with particular emphasis on moms. BillMyParents entered into a partnership with Procter & Gamble’s marketing agency Tremor, whose Vocalpoint network of 600,000 interactive moms is expected to give BillMyParents brand exposure to as many as 2.5 million moms in the US. He previously served as Executive Vice President, Human Resources and Communications for the Wells Fargo Home and Consumer Finance Group, where he led major administrative functions for all businesses associated with the 50,000-member organization focused on mortgage banking, credit cards and consumer finance.
Parents can now track their childs’ allowance with the BillMyParents instantly track-able, reloadable “SpendSmart Card.” With instant text alerts to both parents and teens showing real time transaction details each time the teen uses the card; the ability for parents to instantly lock or unlock the card at any time from their mobile phone, smart phone or online; and the ability for parents to instantly load funds on the card at anytime the card provides a tool for the real world. In addition to these features, the “SpendSmart Card” lets parents instantly add funds and because it is preloaded puts users at no credit risk.