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).
Despite, the lowest levels of delinquencies and net charge-offs, US credit card asset quality are expected to weaken modestly in 2016. The slowdown in asset quality improvement does not signal material credit deterioration over the near to intermediate term, but portfolio seasoning and recent growth will also weigh more heavily on credit quality metrics in 2016.
YapStone announced RentPayment, its online and mobile payment solution for the apartment rental industry, will now report rental payment information using TransUnion’s Resident Credit. The integration with ResidentCredit will offer a prompt, seamless reporting process for property managers and residents.
The inclusion of home rent payments in Vantage Scores is having a significant positive impact for subprime consumers as well as consumers with thin files such students and recent graduates.
A new study finds that by including on-time utility payments in credit reports, there was nearly a 50 percent drop in subprime consumers with credit scores between 300 and 600.
Consumer holiday spending drove total credit card debt to its highest level in nearly five years, hitting $642 billion in December, a 6% gain over the prior year.
Credit card portfolio valuations are set to decline and the value reductions will appear in earnest by 2017. Driving the change are both changes in card business models as well as regulatory and accounting rule changes.
A new report suggests late stage delinquency metrics may be signaling a possible inflection point in credit loss performance. Credit loss metrics will begin to weaken throughout 2015 as more recent vintages begin to season.
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.
An increasing number of U.S. issuers are bottom fishing for new cardholders with a secured credit card. The target market is not limited to the financially challenged but also includes prepaid card users.
ACI Worldwide (ACIW) announced Southern Auto Finance Company (SAFCo) has selected its UP Bill Payment Solution to increase consumer convenience and reduce payment processing costs. SAFCo customers will be able to pay their loans electronically on a mobile device, computer or via phone with a debit card or ACH (Automated Clearing House). Recently named to SubPrime Auto Finance News’ list of Top 100 sub-prime auto lending, recovery and financial service providers, SAFCo is a leading automotive financing company that operates in 14 states. As the company expands its national reach, it is constantly working to improve processes and offer innovative solutions, including bill pay advancement. After conducting a broad vendor evaluation, SAFCo chose ACI’s comprehensive and integrated electronic bill payment solution.
In their series of weekly year-end card industry trend reports R.K. Hammer now discusses how fee income continues to perform in terms of top line revenue contribution. For decades, interest income on prime/super prime cards had always contributed the largest portion of the card industry’s revenue streams; just the exact opposite for subprime cards, though, where fees have always been the higher piece of total income. As reported earlier, the line between interest income and fee income for prime/super prime accounts has been narrowing substantially in recent years; with lower revenue in many cases coming from interest and an increasingly higher portion derived from fees. That trend continued again in 2013.