Credit card firms to extend customer data sharing

Five UK credit card issuers - Barclaycard, Capital One, GE Money, HBoS and MBNA - will begin sharing 'behavioural data' on their customers' accounts from December.

Currently, shared credit card details include the customer's balance, credit limit and whether payments are up to date.

The new data will include the amount of their last payment checked against minimum payment amounts, as well as changes to credit limits and withdrawal limits, and whether the customer is signed up to any promotional deals.

The move is intended to identify and assist people who may be slipping into financial trouble, according to UK payments association Apacs.

But the information, which will be shared via credit reference agencies such as Experian, is also expected to offer firms more visibility into how customers use their credit cards, so that they can lend accordingly.

Credit card fraud gangs going global

These professional, well-trained gangs have a network of secret contacts around the globe and use sophisticated technology and methods to escape detection by authorities, according to the Department of Special Investigation (DSI).

Police admit it is very difficult to track down these criminals, who have had training in how to avoid detection. It usually takes police a very long time to catch them, said DSI officer Kemachart Prakaihongmani, a member of the team which arrested five members of a gang last week.

The gang members, three Thais and two Romanians, are Pol Snr Sgt-Maj Pramote Piathong, 41, Jirayos Siribawornkiat, 43, Pontagorn Deeprasert, 31, Ionut Buliarca, 28, and Robert Rotru, 29. They all had warrants issued for their arrest by the Min Buri court.

"The arrests show we're dealing with a global network which has connections in many countries. It is a cross-regional network," said Pol Col Songsak Raksaksakul, chief of the DSI's Foreign Affairs and Transnational Crime Bureau.

It took the police team one year to trace all members of this gang after receiving complaints from commercial banks in Thailand. The team started its search by checking whether the suspects had criminal records.

Investigators apparent the acclaim agenda artifice assemblage had contacts in Asia and Europe. Stolen acclaim agenda abstracts in Thailand was awash via the internet or through adaptable buzz argument letters to Europe, while the abstracts in Europe was beatific to Thailand the aforementioned way. This cross-continental barter fabricated it difficult for bounded authorities to yield acknowledged activity adjoin them because the case could not be prosecuted in Thailand, Pol Capt Kemachart said.

To get information on credit cards, the gang removed the card readers from ATMs and replaced them with similar ones called skimmers, which read the magnetic strips on the cards. Tiny cameras were also installed at the top of the ATMs to record passwords.

"Even the color of the card readers is similar to the real ones and the camera is very small and thin," Pol Capt Kemachart said.

The gang usually installed these devices at ATMs in crowded tourist spots in the Sukhumvit and Nana areas in Bangkok, as well as in Chiang Mai and Phuket provinces, he said.

Apart from the DSI, the Economic and Cyber Crime Division is also tracking down gangs involved in credit card fraud.

On Nov. 5, the agency arrested three people--Tibadi Tiraudomkul, 55, Somchai Jirapitayanon, 42, and Tawi Kongsri, 58--who made counterfeit credit cards. Among the items seized were 25 fake credit cards, mobile phones containing credit card data and a card typing device.

The arrest followed a complaint by the New Zealand embassy on July 22. It petitioned police after its ambassador became a victim of the gang, which faked his credit cards and used them in Thailand. A gang member bought the credit card data from a Malaysian for between 8,000 baht (US$240) and 10,000 baht (US$280).

On Aug. 19, the agency also arrested Taiwanese Liang Che Chih, 33, who had 62 fake credit cards and two skimmers.

He had lived in Thailand for three years, buying credit card data from the United States and selling it in Thailand. His gang caused damage worth 100 million baht (US$2.8 million) to more than 60 banks and financial institutions.

Fraud seen in in-flight credit card sales

Several Asian airlines including Japanese are seeing growing credit card fraud in the purchase of duty-free items on international flights, Japanese police say.

Such usage has resulted in losses running into millions of dollars for credit card companies, reported Kyodo news service which investigated the problem. The fraud goes on because the in-flight staff is unable to perform online authorization of credit card use, police said.

Police in Chiba prefecture, which has jurisdiction over Narita International Airport, Japan's largest international gateway, has opened an investigation into the fraud, saying they suspect several cross-border rings are involved.

Chiba police say they have identified one such ring, made up of a dozen members including Thai and Filipino nationals. Authorities are considering involving the Interpol in the investigation.

Credit card fraud, check forgery increasing

As the strength of the nation's economy remains in question, one expert said she believes an increase in credit card fraud and check forgery will continue through rough economic times.

Ellen Hein, manager and CEO of the Texas Tech Federal Credit Union, said she has seen an increase in the unauthorized use of credit cards and an increase in counterfeit checks that look like cashier's checks.

Hein said two cases of counterfeit checks were discovered in Lubbock during the last three weeks. Normally, it is common to see about one to two cases per year.

One of the most commonly seen scams, she said, is an e-mail stating the recipient was the winner of a lottery or similar contest.

Given the weakened economy, she said, she believes such cases will continue to increase.

Chief Ron Seacrist of the Tech Police Department said he also has noticed an increase in the number of reports of credit card abuse.

When a credit card is stolen and used, he said, the person normally will use the card within 24 hours, because after that time they may be unable to use the card.

Because of this, the department advises students to cancel as soon as possible, Seacrist said, and if the person uses the card before it is canceled, the department can use that location as a lead to find the person.

Disney-JCB Card, Japan's First Disney-branded Credit Card

The Walt Disney Company (Japan) Ltd. a global leader in the entertainment business, and JCB Co., Ltd. (JCB), a pioneer of Japan's credit card business and brand holder of Japan's only international credit card brand, have teamed up to develop and issue Japan's first Disney-branded credit card, the Disney-JCB Card.

The Disney-JCB Card offers a generous package of attractive, exclusive cardmember benefits to help make cardmembers dreams come true through membership in the Disney Card Club. Membership entitles cardmembers to a number of special offers at Tokyo Disney Resort(R) courtesy of Urayasu, Chiba-based Oriental Land Co., Ltd.

Disney fans and many other customers are sure to love the Disney-JCB Card for the great services and special offers it provides. These include six card designs and Disney Points for the whole family redeemable for Disney merchandise and One Day Passports at Tokyo Disneyland(R) and Tokyo DisneySea(R).

Cardmembers will also be able to share their points with the whole family, including their children through the Disney Kids Point Card. As a special benefit, cardmembers will have the chance to attend a private character experience at Tokyo Disney Resort. Disney Points is the first-ever loyalty-point program available for use at Tokyo Disney Resort.

The Disney-JCB Card helps make cardmember dreams come true. The Walt Disney Japan and JCB will continue to work together to increase customer satisfaction by developing new services and benefits that attract many more customers.

Target's credit-card profit drop raises questions

Target Corporation's big drop in credit-card profit in the third quarter has raised questions about whether the retailer may ultimately turn certain parts of the operation over to partner J.P. Morgan Chase & Co.

Target in May sold 47 percent of its stake in the card unit to J.P. Morgan Chase for $3.5 billion and, under terms of the sale, the portfolio's performance must remain "sufficiently strong."

If "substantial unanticipated portfolio deterioration" occurs, J.P. Morgan Chase would gain the right to direct Target's credit-card team to put in place alternative underwriting and risk-management practices until sufficient improvement is seen.

While it isn't clear whether J.P. Morgan will eventually take over management of certain parts of Target's credit-card portfolio, the portfolio's deteriorating performance since May shows how quickly the economy's woes have rattled even recent financial plans.

Target on Monday posted a 24 percent drop in net income on reduced profit from the credit-card division. Bad-debt expense more than doubled to $314 million from a year earlier as more customers defaulted on card bills. The deteriorating economy hurt the card division's performance.

Some stores hit with more credit card delinquencies

Many retailers have a store-branded credit card, a strategy to encourage shoppers to spend more in their stores. The majority, though, have unloaded their credit card portfolios to banks in recent years, meaning that much of the profits and the risk on the store-branded card belong to the partner bank.

Yet, Target and Nordstrom, a part of a scattering of added retailers, defied this trend, which looked like a acute move if times were good. Retail acclaim cards about allegation absorption ante of 20% of more, abundant college than added acclaim cards, says Curtis Arnold, architect of CardRatings.com, a website that ante acclaim cards. The college ante accommodate a bigger addition to issuers' profits.

But when the economy sours, these rates can make it harder for consumers to pay their bills, pushing charge-offs -- when banks give up on collecting debt -- on retail cards higher and faster than on general purpose cards.

Now, analysts say Target and Nordstrom would be hard pressed to get decent offers on their card portfolios, though Target sold just under half its card business earlier this year.

Melbourne Beach police looking for credit card thieves

Police are looking for two credit card thieves who took them from a vehicle parked at Ocean Park in Melbourne Beach on Thursday afternoon and then used the cards to buy nearly $3,800 worth of goods, police said.
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The men were seen on surveillance cameras in various Melbourne stores, said Cpl. Melanie Griswold of Melbourne Beach police.

While at the store, the duo purchased a 95-gallon fuel tank and a hand pump worth $720.78.

Citigroup raises credit card interest rates

Citigroup Inc. is raising rates for some of its U.S. credit card customers after losses in its global card division skyrocketed.

Earlier, The Wall Street Journal reported that Citigroup is telling some credit card customers that their rates are being raised by an average of three percentage points and that less than 20 percent of the bank's customers could be affected, citing a person familiar with the company's strategy.

The move comes as the financial services giant looks for additional ways to return to profitability, including continuing to cut jobs under a previously announced plan.

The downturn in the economy has led to rising defaults on all types of loans this year, such as credit cards. Credit losses in Citigroup's global card division rose to $1.59 billion in the third quarter from $1.05 billion during the same quarter in 2007, as more customers missed payments. Credit losses include loans written off as not being repaid. Overall, the card division lost $902 million in its card division during the third quarter. It earned $1.44 billion in the unit during the third quarter in 2007.

Customers will be able to opt out of the changes and instead use their cards until they expire. People who opt out can pay down balances under the old terms, the company said.

The company is dealing with broader problems in its operations amid the ongoing credit crisis. It has reported an overall loss each of the last four quarters, including a loss of $2.8 billion during the third quarter.

Regulators nix credit card debt forgiveness plan

Federal bank regulators have rejected a request by banks and consumer advocates for a program to let lenders forgive huge portions of credit card debt.

The Office of the Comptroller of the Currency alone the appeal for a appropriate affairs that would acquiesce as abundant as 40% of acclaim agenda debt to be forgiven for consumers who don't authorize for absolute claim plans.

An unusual alliance of financial industry interests and consumer advocates, represented by the Financial Services Roundtable and the Consumer Federation of America, made the request to the Treasury Department agency on Oct. 29. It demonstrated the urgency of the situation in a deepening economic crisis: consumers — even those with strong credit records — defaulting at high levels on their credit cards, while banks battered by the credit crisis bleed tens of billions from the losses.

An agency said the government objects to allowing banks to defer losses for several years on the forgiven debt, as would occur in accounting by lenders under the special program.

The biggest credit card lenders include Discover Financial Services, Bank of America, Citigroup, JPMorgan Chase, Capital One Financial, American Express and HSBC Holdings.

Credit card charge-off rates, balances written off as unpaid, rose to 6.8% in August, up 48% from a year earlier, according to Moody's Investors Service.

Americans are weighed down by about $900 billion in credit card debt, according to the latest available Federal Reserve figures.

Credit One Bank launches card personalisation service

Credit One Bank has launched Design My Card, a new program that lets customers use personal photos and images to design their own Credit One Bank credit card.

Current and prospective customers can experience the program at CreditOneBank.com.

Credit One Bank is one of the first credit card issuers in the United States to offer this unique design service. Design My Card has a simple, easy-to-use interface that allows visitors to upload and customize their photos on a Credit One Bank credit card. In addition to photos, users can select from an image gallery featuring nature scenes, abstract imagery, patriotic photos, animals, and sports. The intuitive technology helps users to easily resize, rotate, flip and move photos and images to meet their needs.

Credit card firms attacked for hiking rates to 17%

Credit card companies are being told to end sudden rises in charges after Gordon Brown criticised some of them over claims that they were exploiting the vulnerable during the recession.

Mr Brown, who is said to be deeply concerned about the behaviour of some companies, called yesterday for a “new responsible approach” to lending as the companies were summoned to talks with the Government.

Lord Mandelson, the Business Secretary, called on companies last night to pass on rate cuts and treat their customers fairly and sympathetically. He wants the companies to work with the Business Department on how to deal with debt.

A survey of more than 200 cards by Defaqto, a banking research group, found that although the Bank of England reduced its rate to 3 per cent, the cost of borrowing on cards rose to 17.6 per cent and rates on store cards rose to 25 per cent.