U.S. Purchase Dollar Volume (PDV) for Visa and MasterCard (credit + debit) in the fourth quarter (4Q/15) grew at an annual rate (YOY) of 8.6%. Visa U.S. payment card (credit + debit) PDV for 4Q/15 was up 9.5%. MasterCard U.S. payment card (credit + debit) PDV for 4Q/15 was up 8.8%. U.S. PDV for Visa…
American Express (AmEx) fourth quarter (4Q/15) profits rose year-on-year (YOY) by 20.0% to $799 million. U.S. credit card outstandings declined 18.0% YOY to $51.4 billion, compared to $62.1 billion in the prior quarter and $62.6 billion in year ago quarter. U.S. credit card Purchase Dollar Volume (PDV) rose 5.0% YOY to $152.3 billion, compared to…
More than half of holiday shoppers expect to shell out the same amount on gifts as they did last year. Fourteen percent expect to spend more, while 30% say they’re cutting back this holiday season.
According to new data from Chase and its “Freedom Lifestyle Index,” overall spending remained flat compared to the first quarter of 2012 and down nine percent from the previous quarter. Despite having increased credit card use gradually over the past 12 months- according to federal reports- Chase asserts consumers are demonstrating ‘wait-and-see’ spending behavior in…
A new survey shows 21% of consumers said they were treated unfairly by
card companies and 32% have paid off and closed a card since January
2008. The research also found that half of those that canceled did so in
direct response to the actions of credit-card issuers, such as cutting
limits, hiking rates, or imposing fees. Consumer Reports says its poll
reveals only 41% said they were highly satisfied with their card issuer,
making credit cards one of the lowest-rated services the firm covers.
The survey also found that 45% of respondents say they are charging
less, 43% say they are spending about the same, and 11% are charging
more than they did a year ago. The surveys found that one-third of
Americans say they don’t own a credit card. Of those Americans who use
them: 54% pay their balances in full each month; 13% carry balances over
$10,000 (Median $17,366); and 33% carry balances up to $10,000 (Median
A new consumer survey has found 38% of Americans experiencing at least one major negative personal finance event in the past 30 days. The negative events include: the inability to pay medical bills or afford medication, missed mortgage payments, home foreclosure, interest rate
increase, penal fees, reduced lines of credit or other changes in credit card terms, job loss or layoffs, reduced healthcare coverage, or the denial of personal loans. The latest “Consumer Reports Index,” which includes the “Sentiment Index,” the “Trouble Tracker Index,”
“Stress Index,” the “Retail Index,” and the “Employment Index,” concluded that Americans feel far worse about their financial situation than they have in the past seven months. The “Sentiment Index” dropped to 38.1 in September from 41.1 in the previous month. The “Trouble Tracker” continues to creep upward from its low point in May of 48.5, but it remains steady, only 60 basis points above the prior month.
In July the “Stress Index” rose slightly to 58.4 and has continued to increase to 65.7 in September. The “Retail Index” for the past 30 days collapsed in August last month, falling to 9.5 from 13.0 in July, has
stabilized in September at 9.7. The “Employment Index” improved significantly in September to 50.3 from 48.0 last month.
Consumer Reports has released the third installment of its credit
education campaign to provide guidance for holiday spending. A recent
survey from the Consumer Reports National Research Center found
that 12 million Americans are still in debt from last year’s holiday
season with 38% of Americans who plan to use credit cards this
holiday season compared to 35% who used credit last year. Consumer
Reports will run a series of
online ads across highly trafficked or influential personal finance and
consumer blogs including Consumerist.com, Yahoo Shopping, and
Bargainist.com. The online ads will highlight the Consumer Reports
“Tightwad Tod” blog.
A new report has determined that the best credit cards for low pricing are Capital One’s “Platinum Prestige,” American Express’ “Clear,” and Iberiabank’s “Visa Classic.” The worst include credit cards issued by First Premier Bank, the HSBC “American DreamCard” and the New Millennium Visa/MasterCard. The study by Consumer Reports also listed
the best cash-back cardsas Capital One’s “No Hassle Cash Rewards,” the Chase “Freedom Visa,” and Discover’s “More.” Among the best gas cards
were the Chase “PerfectCard MasterCard,” Discover’s “Open Road,” and the Hess “Platinum Visa.” CU says it examined hundreds of product offerings. The list of the 12 best and three worst credit cards is in the October issue of Consumer Reports.
A new survey concludes that about 85% of U.S. households participate in at least one rewards program. However, the Consumer Reports research says finding real savings can be tough, and even the more generous programs have limits on how much consumers can earn. CU says some rewards cards do double duty as credit cards. Cash-back, gas, and grocery rewards credit cards can offer some relief for costly essential items, but often carry higher rates than traditional credit cards. Looking at some of the more generous credit card rewards programs, CR found that rates varied from 9.74% to as much as 19.99%. About 41% of the newsletter’s subscribers carried three to five such cards, 9% had six to nine of them, and 3% carried 10 or more.
A new poll finds that 96% of American women who have shopped online in the past 12 months have purchased at least one product over the Web. Most online shoppers do both their product research and shopping online while 31% do their research online and then go to a store to buy. The poll conducted by Consumer Reports National Research Center for ShopSmart magazine also found that women spend an average of 1.2 hours per week shopping online. Despite the amount of time women are spending online, one-third said they had a negative online experience. Among those women, 20% said they never got the item they ordered. Another 13% said the merchandise was very different than represented. And, 451,588 American women claimed to have had their credit card number stolen online in the last 12 months.
Among credit card asset-backed securities, recently reported excess spread levels on several fixed-rate, high-coupon transactions are now thin, and could trigger early amortization. At the end of May, six credit card ABS fixed-rate series reported three-month average excess spread below 2.00%. Fitch Ratings says this noncredit-related early amortization risk has also caused investors to gain a greater appreciation for trust structural nuances, particularly the prepayment protection offered by the various socialist, semisocialist, and nonsocialist structures. Fitch says that although limited, issuers maintain some flexibility in managing performance and prepayment risk. However, these options are broader portfolio management initiatives that would likely boost performance over time, including re-pricing accounts to boost portfolio yield, accelerating receivable growth in an attempt to dilute reported losses, and adding newly originated or better performing accounts to the trust. Fitch says that a relatively simple way to protect against the excess spread margin compression in these fixed-rate deals is to incorporate interest rate swaps into the transactions. A good example is MBNA Master “Credit Card Trust II,” which has several high-coupon, fixed-rate deals but has effectively hedged against the falling rate environment by employing interest rate swaps and their payments within the trust. As such, excess spread for MBNA fixed-rate transactions has remained relatively strong.
Fitch Ratings is maintaining its negative rating outlook on U.S. consumer finance companies in 2003, although the pace of negative rating actions is expected to slow, as rating outlooks are becoming more stable, according to a new report published this week by the rating agency titled ‘U.S. Consumer Finance: A Light at the End of the Rating Tunnel in 2003’.