Credit Card Stimulus

There’s a good documentary out there, made in 2006 and released nationally in 2007. It’s called “Maxed Out”, and it has some poignant and fitting commentary about credit card companies, debt, and how many Americans, from first-year college students to widowed retirees, are affected by predatory lending practices.

A main thread throughout the documentary is an interview with Elizabeth Warren, Harvard Law School professor and head of the Congressional Oversight Panel created to investigate the US bank bailout (formally known ..read more

When it comes to major changes that consumers have seen in recent months, there is no doubt that cardholders have seen plenty. While some changes have been publicized more than others, each has affected the view that many people perceive when it comes to credit cards. One of the changes that seem to be a growing trend among credit card issuers is the annual fee and by the looks of it; we may see annual fees continue to find their ..read more

When it comes to default rates, there is no argument that issuers have it bad even as recent reports have shown that they may be stabilizing. For some it is worse than others, and it now seems that those whom are getting hit the hardest are none other than retailers. While they have not been as publicized as many of the major issuers in the country; retailers have seen defaults on their credit cards rise much higher their well known ..read more

With the CARD Act implementation date looming, many changes will be set on the way issuers are able to do things. Under the new law, those that are under the age of 21 will soon be required to have a co-signer, pass a financial literacy course, or show that they have the ability to re-pay amounts that are borrowed. While many students will be able to get a traditional credit card there will still be others that will not. For ..read more

On Friday the 29th I made a CARD Act presentation at the Federal Reserve Bank of Atlanta. One of the CARD Act provisions requires that credit card issuers notify their cardholders at least 45 days in advance if the terms of their account are going to adversely change. Specifically, if your interest rate is going to be increased or an annual fee is going to be implemented the notice is required.

My hypothesis is that the notice is irrelevant because ..read more

Here’s an interesting approach to buying a car, created by Bruce Bueno de Mesquita, a professor of politics at New York University and a Senior Fellow at the Hoover Institution at Stanford University. The professor says he has used his method “to buy eight or nine cars in the past, saving myself thousands of dollars.”

It works like this: he first decides on a make, model, and trim. The he gets on the phone and calls every dealer in his area ..read more

Not too long ago the word was out from researchers and experts that consumers could probably look forward to seeing less solicitation mail when it comes to credit card issuers. It now seems that tune has changed according to direct mailing intelligence company, Mintel Comperemedia, which says that their data shows that in the last quarter of 2009 mail from your issuer rose for the first time in three years.

 

So how large of an increase did we see, and what ..read more

Odds are you've probably heard a mention or two about the Credit Card Accountability Responsibility and Disclosure Act (CARD Act). The CARD Act was signed into law by President Obama in May 2009 and was scheduled to roll out in three phases over a 15-month period. The first phase went into effect on August 20th and included the new 45-day advance notice to cardholders regarding significant account changes or interest rate increases. It also required that issuers mail out statements ..read more

On Friday, January 29th, John Ulzheimer of Credit.com presented a CARD Act summary to 100 members of the Georgia Consortium for Personal Financial Literacy at the Federal Reserve Bank of Georgia. In attendance were college students, large and small lenders, credit reporting agencies, credit counselors, college professors, bankruptcy judges and Federal Reserve employees.

The summary included a review and discussion of the August 2009 provisions, the February 2010 provisions and the August 2010 provision.

Credit.com and IdentityTheft911 were ..read more

I have a strong belief that when a consumer is researching buying a product or service that he can rely upon the provider to give him accurate information on which he can make a decision.  That's not always true, hence the concept and term "buyer beware."

Nordstrom, probably the most trusted name in retailing, got their exalted position by earning it year after year, customer after customer. But you don't know anything about the street vendor and if you buy a purse ..read more