NACS applauded the reintroduction yesterday of the "Credit Card Fair Fee Act," bipartisan legislation introduced by House Judiciary Chairman John Conyers (D-MI) and Representative Bill Shuster (R-PA). The bill seeks to address the more than $48 billion that Americans annually pay in credit card interchange fees.
Similar to legislation alien aftermost Congress by Chairman Conyers and accurate by NACS, the bill (H.R. 2695) seeks to advice akin the arena acreage for retailers by giving them a bench at the negotiating table with banks to actuate the fees adjourned for every auction fabricated by acclaim card, and ultimately abate the costs of accustomed appurtenances for consumers.
Credit agenda altering or bash fees are a allotment of anniversary transaction that Visa and MasterCard and their affiliate banks aggregate from retailers every time a acclaim or debit agenda is used. These fees boilerplate about 2 percent in the United States, the accomplished amount in the automated world.
In 2008, acclaim agenda fees amount U.S. accessibility food $8.4 billion—compared to alone $5.2 billion in abundance profits, according to NACS data. Almost all of these acclaim agenda fees are attributable to acclaim agenda bash fees.
According to NACS, acclaim agenda altering fees are set in abstruse by the banks and hidden from view. Raising these fees is how Visa and MasterCard—which calm ascendancy added than 80 percent of the U.S. acclaim agenda market—encourage banks to affair added acclaim and debit cards, altercate critics of the acclaim agenda industry.
"We are captivated that Congress is demography a afterpiece attending at these abandoned fees on the heels of its ameliorate of the acclaim agenda industry's calumniating lending practices," said NACS Chairman Sonja Hubbard, CEO of Texarkana, Texas-based E-Z Mart Stores. "Now it's time to abode the blow of the acclaim agenda industry's calumniating practices."
"Right now bash fees are anchored by the banks, hidden from the accessible and affected on retailers in a take-it-or-leave-it offer," said Hubbard. "The Acclaim Agenda Fair Fee Act would acquiesce retailers and the agenda associations to accommodate on according footing, and we acclaim this bipartisan accomplishment to accomplish it happen," she said.
These fees accept been the accountable of assorted hearings in both the House and Senate beneath both the Republican and Democratic Congresses, and the cyberbanking industry has acutely lobbied adjoin any reform—something it continues to do.
Saturday, June 6, 2009
Tuesday, June 2, 2009
New law restricts credit card use by young adults
Parents should be particularly elated about one section of the freshly adopted credit card law that could keep young people out of debt.
The Credit Card Accountability, Responsibility and Disclosure Act prohibits credit card issuers from extending credit to a person under 21 unless one of two conditions is met. Pay attention parents, because you've been given great power — and I want you to use it.
Under one condition, the agenda issuer has to verify that a adolescent developed has the "independent" banking bureau to accord any acclaim that has been extended. One would anticipate this would accept consistently been the case. And yet we apperceive that lenders — counting on a ancestor or some added amenable developed to bond out a adolescent being — accept accepted acclaim to arrears consumers active off apprentice loans or bare assets from low-paying jobs.
Under a additional condition, a adolescent developed could get a acclaim agenda if a parent, acknowledged guardian, or an alone 21 or earlier agrees to assurance a acclaim appliance as a co-signer.
The law says you accept to accede to be accordingly accountable for the charges. Don't adapt that to beggarly you are alone accountable for half. When you co-sign, you are accordant to become absolutely amenable for all the debt.
The Credit Card Accountability, Responsibility and Disclosure Act prohibits credit card issuers from extending credit to a person under 21 unless one of two conditions is met. Pay attention parents, because you've been given great power — and I want you to use it.
Under one condition, the agenda issuer has to verify that a adolescent developed has the "independent" banking bureau to accord any acclaim that has been extended. One would anticipate this would accept consistently been the case. And yet we apperceive that lenders — counting on a ancestor or some added amenable developed to bond out a adolescent being — accept accepted acclaim to arrears consumers active off apprentice loans or bare assets from low-paying jobs.
Under a additional condition, a adolescent developed could get a acclaim agenda if a parent, acknowledged guardian, or an alone 21 or earlier agrees to assurance a acclaim appliance as a co-signer.
The law says you accept to accede to be accordingly accountable for the charges. Don't adapt that to beggarly you are alone accountable for half. When you co-sign, you are accordant to become absolutely amenable for all the debt.
Tuesday, May 19, 2009
Capitol Report: Four ways new credit-card law could hit consumers
Washington is expected to wrap up work this week on legislation that would curb credit-card practices decried by some as predatory and anticonsumer. But the credit-card industry is warning that new rules could backfire on consumers in a number of ways.
Given the recession and already weak demand, repeated warnings from industry representatives about overly restrictive rules cutting consumers' access to credit deserve particular attention.
The approaching is somewhat black accustomed that Congress is still alive on the bill, which President Barack Obama wants to assurance by Memorial Day. The House has already anesthetized a bill, and the Senate is accepted to vote on a accompaniment angle Tuesday. The two versions may again charge to be accommodated in a appointment committee.
Many of the proposals in Congress are independent in final rules, accustomed aftermost year by the Federal Reserve and added regulators, that blow credit-card rates, fees and disclosures, and booty aftereffect July 1, 2010. Some in Congress appetite those protections in abode now.
Less adaptability to change ante could advance firms to abate the availability of acclaim to higher-risk borrowers, said Gene Truono, managing administrator at BDO Consulting, a Fresh York-based banking casework advising firm, and above arch of acquiescence at Chase Cards.
"The models that the banks accept acclimated over time for subprime accept been those that acquiesce them the adaptability to accession ante bound during a college crime economy," Truono said. The recession will alone add to the issuers' apropos about creditworthiness, he said.
"In times like these, back the abridgement is ambiguous and unemployment is rising, [access to credit] will be curtailed," Truono said. "It will accomplish alike beyond issuers agitable about alms fresh acclaim to beneath creditworthy borrowers because of the disability to rapidly change rates."
But customer advocates say protections are bare and that complaints from firms are overblown. "Just because companies can't use ambiguous practices, that doesn't beggarly they can't amount somebody for risk," said Frank.
Given the recession and already weak demand, repeated warnings from industry representatives about overly restrictive rules cutting consumers' access to credit deserve particular attention.
The approaching is somewhat black accustomed that Congress is still alive on the bill, which President Barack Obama wants to assurance by Memorial Day. The House has already anesthetized a bill, and the Senate is accepted to vote on a accompaniment angle Tuesday. The two versions may again charge to be accommodated in a appointment committee.
Many of the proposals in Congress are independent in final rules, accustomed aftermost year by the Federal Reserve and added regulators, that blow credit-card rates, fees and disclosures, and booty aftereffect July 1, 2010. Some in Congress appetite those protections in abode now.
Less adaptability to change ante could advance firms to abate the availability of acclaim to higher-risk borrowers, said Gene Truono, managing administrator at BDO Consulting, a Fresh York-based banking casework advising firm, and above arch of acquiescence at Chase Cards.
"The models that the banks accept acclimated over time for subprime accept been those that acquiesce them the adaptability to accession ante bound during a college crime economy," Truono said. The recession will alone add to the issuers' apropos about creditworthiness, he said.
"In times like these, back the abridgement is ambiguous and unemployment is rising, [access to credit] will be curtailed," Truono said. "It will accomplish alike beyond issuers agitable about alms fresh acclaim to beneath creditworthy borrowers because of the disability to rapidly change rates."
But customer advocates say protections are bare and that complaints from firms are overblown. "Just because companies can't use ambiguous practices, that doesn't beggarly they can't amount somebody for risk," said Frank.
Monday, May 18, 2009
Congressman Wilson backs credit card reform
Charlie Wilson supported recent legislation he believes will protect credit card consumers and homebuyers. Wilson, D-St. Clairsville, voted in favor of the Credit Cardholders Bill of Rights passed by the House on April 30, which provides consumer protection against common industry practices.
According to the release, abounding barter complained of a convenance of authoritative a bill due on a anniversary or a Sunday. Under the legislation, the due date would be continued to the abutting business day if it avalanche on a anniversary or Sunday. "Right now, acclaim agenda companies can accession ante at any time for any reason. That's not fair and it doesn't account the agreement of the aboriginal contract. This legislation gives Americans the rights and advice they charge to accomplish assured decisions about their finances," Wilson said.
The second-term agent additionally voted in favor of the Mortgage Ameliorate and Anti-Predatory Lending Act of 2009, which he says is to assure consumers while reforming the banking system. "Many of us accept that these reforms could accept prevented the subprime mortgage crisis that concluded up demography our abridgement down," he said.
The legislation, amid added things: requires lenders ensure a borrower's adeptness to accord the loan; prohibits arbitrary lending practices; holds creditors amenable for loans that arise with them; protects tenants who hire homes that go into foreclosure, and offers acknowledged abetment to homeowners and tenants adverse foreclosure.
Wilson additionally accurate the Artifice Enforcement and Recovery Act of 2009 that creates a bipartisan agency to investigate the problems in the banking arrangement that contributed to the accepted recession and creates laws to arraign the accumulated and mortgage artifice he says occurred. He said this is annihilation added than "re-instituting the affectionate of reforms we charge to clean our abridgement in a way that's fair to business and consumers."
Finally, Wilson alien a bill -the Rural Career and Abstruse Education Expansion Act -to animate the assimilation of abstruse agents in rural areas. Under the bill, any abecedary who completes bristles years of teaching career and abstruse coursework on a full-time base could accept up to $17,500 to accord their apprentice loans.
According to the release, abounding barter complained of a convenance of authoritative a bill due on a anniversary or a Sunday. Under the legislation, the due date would be continued to the abutting business day if it avalanche on a anniversary or Sunday. "Right now, acclaim agenda companies can accession ante at any time for any reason. That's not fair and it doesn't account the agreement of the aboriginal contract. This legislation gives Americans the rights and advice they charge to accomplish assured decisions about their finances," Wilson said.
The second-term agent additionally voted in favor of the Mortgage Ameliorate and Anti-Predatory Lending Act of 2009, which he says is to assure consumers while reforming the banking system. "Many of us accept that these reforms could accept prevented the subprime mortgage crisis that concluded up demography our abridgement down," he said.
The legislation, amid added things: requires lenders ensure a borrower's adeptness to accord the loan; prohibits arbitrary lending practices; holds creditors amenable for loans that arise with them; protects tenants who hire homes that go into foreclosure, and offers acknowledged abetment to homeowners and tenants adverse foreclosure.
Wilson additionally accurate the Artifice Enforcement and Recovery Act of 2009 that creates a bipartisan agency to investigate the problems in the banking arrangement that contributed to the accepted recession and creates laws to arraign the accumulated and mortgage artifice he says occurred. He said this is annihilation added than "re-instituting the affectionate of reforms we charge to clean our abridgement in a way that's fair to business and consumers."
Finally, Wilson alien a bill -the Rural Career and Abstruse Education Expansion Act -to animate the assimilation of abstruse agents in rural areas. Under the bill, any abecedary who completes bristles years of teaching career and abstruse coursework on a full-time base could accept up to $17,500 to accord their apprentice loans.
Thursday, May 14, 2009
KTC establishes long-term relationship with hi-end credit card members
KTC created VIP society to establish long-term relationship with hi-end credit card members of both KTC VISA Infinite and KTC World MasterCard by offering them valuable exclusive experience.
KTC first cooperates with ISOPTIK, the leader of lens structure design and producer of hi-end world class progressive glasses, to organize a special workshop under the concept "The Revolution of Vision," which suggests the eyeglasses for personality improvement, introduces how to select the lens that makes vision superior to normal eyesight and offers various gifts and privileges at ISOPTIK on the 4th Floor of Erawan Shopping Center, Bangkok.
KTC spends long time to study customers' spending behavior to evaluate the need and lifestyle of each member as the guideline to organize the marketing activity to establish long-term relationship with customers. Therefore, since the 2nd quarter KTC will plan the exclusive activity to offer the valuable experience that members have not yet found anywhere, especially for the members of KTC VISA Infinite and KTC World MasterCard credit cards in order to establish relationship and return benefits to the hi-end customers. At present, KTC has over 1,000 members holding hi-end credit cards.
KTC VISA Infinite" and "KTC-Royal Orchid Plus VISA Infinite" credit cards were initially launched in 2006 with the major aim of offering superior privileges to those of any other credit cards to VIP members consisting of top administrators, business owners, politicians and celebrities. They are also the highest level of VISA credit cards of which members must be exclusively invited to apply. At present, there are total 493 members.
KTC-Royal Orchid Plus World MasterCard" credit card was initially launched on 30 October 2008. It was and remains the first card in Thai credit card business that members can order the precious gem-decorated credit card "The Jewel" which is specially decorated with three cut diamonds weighing 0.06 karat in total and 6K gold valuing over 10,000 Baht. It is also the first and highest level MasterCard credit card in Thailand and offers membership via invitation only. At present, there are total 358 members.
KTC first cooperates with ISOPTIK, the leader of lens structure design and producer of hi-end world class progressive glasses, to organize a special workshop under the concept "The Revolution of Vision," which suggests the eyeglasses for personality improvement, introduces how to select the lens that makes vision superior to normal eyesight and offers various gifts and privileges at ISOPTIK on the 4th Floor of Erawan Shopping Center, Bangkok.
KTC spends long time to study customers' spending behavior to evaluate the need and lifestyle of each member as the guideline to organize the marketing activity to establish long-term relationship with customers. Therefore, since the 2nd quarter KTC will plan the exclusive activity to offer the valuable experience that members have not yet found anywhere, especially for the members of KTC VISA Infinite and KTC World MasterCard credit cards in order to establish relationship and return benefits to the hi-end customers. At present, KTC has over 1,000 members holding hi-end credit cards.
KTC VISA Infinite" and "KTC-Royal Orchid Plus VISA Infinite" credit cards were initially launched in 2006 with the major aim of offering superior privileges to those of any other credit cards to VIP members consisting of top administrators, business owners, politicians and celebrities. They are also the highest level of VISA credit cards of which members must be exclusively invited to apply. At present, there are total 493 members.
KTC-Royal Orchid Plus World MasterCard" credit card was initially launched on 30 October 2008. It was and remains the first card in Thai credit card business that members can order the precious gem-decorated credit card "The Jewel" which is specially decorated with three cut diamonds weighing 0.06 karat in total and 6K gold valuing over 10,000 Baht. It is also the first and highest level MasterCard credit card in Thailand and offers membership via invitation only. At present, there are total 358 members.
Tuesday, May 12, 2009
Senate Deal Could Lower Credit Card Rates
Consumers who are paying more in interest because they have fallen behind on their credit card bills could regain their older, lower rates if they pay their bills on time for six months, under a compromise proposal reached by senators seeking changes in laws governing the credit card industry.
The Senate proposal was brokered between Republicans, who say lenders should be able to take into account a person's behavior, and Democrats, who contend that the practice of hiking rates on past balances prevent consumers from climbing out of debt.
The acceding was included as allotment of a broader amalgamation on acclaim agenda reform, appear Monday by Senate Banking Committee Chairman Chris Dodd, D-Conn. The bill was accepted to canyon this anniversary with President Barack Obama's support.
Dodd had originally proposed an absolute ban on attendant amount increases. But afterwards Republican support, his bill was advised absurd to affected procedural hurdles in the Senate.
The most contempo angle would prohibit lenders from accretion absorption ante on accomplished buys unless the cardholder has collapsed at atomic 60 canicule behind. At the aforementioned time, lenders would be appropriate to analysis a cardholder's agreement every six months.
The bill would go into aftereffect nine months afterwards enactment. The House anesthetized its own adaptation of the bill in April by a 357-70 vote.
Wednesday, May 6, 2009
U.S. House approves credit card protections
The House last week passed new consumer protections for credit card users, including restrictions on how banks can charge fees and raise interest rates.
The House voted 357-70 for a bill that offers a salve to borrowers in the midst of a recession, when many people have turned to their credit cards to help meet expenses.
The bill is accurate by President Barack Obama, and was fabricated stronger through amendments appropriate by the White House. Democrats accept said they achievement to canyon it through the Senate and get it to Obama's board by Memorial Day.
Among its provisions, the bill would anticipate lenders from abruptly adopting absorption ante on absolute balances except beneath bound circumstances, and requires them to accord 45 canicule apprehension of any amount hike. It adds restrictions on acclaim cards offered to academy students, and forbids companies from giving cards to anyone beneath 18. Most of the protections would not go into aftereffect until July 2010, in bike with authoritative changes actuality put in abode by the Federal Reserve.
Supporters said they aimed to accord consumers a fair agitate adjoin what they alleged bloodthirsty practices by agenda issuers. Others said they afraid that banks adeptness accomplish beneath acclaim accessible as an adventitious aftereffect of the fresh rules. It may drive abate banks out of the acclaim agenda market, some said
The House voted 357-70 for a bill that offers a salve to borrowers in the midst of a recession, when many people have turned to their credit cards to help meet expenses.
The bill is accurate by President Barack Obama, and was fabricated stronger through amendments appropriate by the White House. Democrats accept said they achievement to canyon it through the Senate and get it to Obama's board by Memorial Day.
Among its provisions, the bill would anticipate lenders from abruptly adopting absorption ante on absolute balances except beneath bound circumstances, and requires them to accord 45 canicule apprehension of any amount hike. It adds restrictions on acclaim cards offered to academy students, and forbids companies from giving cards to anyone beneath 18. Most of the protections would not go into aftereffect until July 2010, in bike with authoritative changes actuality put in abode by the Federal Reserve.
Supporters said they aimed to accord consumers a fair agitate adjoin what they alleged bloodthirsty practices by agenda issuers. Others said they afraid that banks adeptness accomplish beneath acclaim accessible as an adventitious aftereffect of the fresh rules. It may drive abate banks out of the acclaim agenda market, some said
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