John Caroll

Credit Card Spending Declines as Non-Revolving Borrowing Rises

After two months of increased credit card spending, consumers are pulling in the reins once again. According to data from the Federal Reserve, credit card spending decreased by $3.44 billion during the month of July. It is now 17.2 percent lower than it was when credit card spending peaked back in 2008. This is in stark contrast to an increase in non-revolving borrowing, which rose by $12 billion.

Congress Investigates Identity Theft

The House of Representatives heard testimony from the Federal Trade Commission (FTC) on Friday that a critical component of their consumer protection mission is to protect consumers -- especially children -- from identity theft. The FTC informed the House Committee on Ways and Means Subcommittee on Social Security that they are devoting significant resources to the problem, including law enforcement, complaint management, and education.

Michigan Students/Alumni Give Back With Credit Cards

Thanks to branded credit cards, Michigan universities and alumni associations made $2.7 million in commissions and royalties. These special cards have not been banned under the tightly regulated rules on marketing to students. These cards generally offer better terms than with regular cards.

Security Flaw Found in Chase/BOA Credit Cards

A disturbing security loophole has been found in the 24-hour automated telephone account information systems used for both the Chase and Bank of America credit cards. According to Boston consumer advocate Edgar Dworsky, these systems are easily vulnerable to hackers.

Capital One Offers Cash Back to Business Owners

A new offering by Capital One, called the Capital One Business No Hassle Cash Premier credit card, will allow business owners to receive 2% cash back on purchases. Cap One has also taken a lot of the complexities out of the rules of the card, making it easier for business owners to manage.

Bank of America Unloading International Credit Card Biz

In an effort to comply with the Basel Committee on Banking Supervision standards, Bank of America’s new CEO Brian T. Moynihan has been selling off the lending institution’s international consumer card business.

Bank of America Reaches Debit Card Settlement

If you had a debit card with Bank of America during the decade-long period of January 2001 and May 2011, you will be hearing from them soon -- with a refund! The bank has established a $410 million fund in settlement of a class action lawsuit over debit card "reordering," which was done intentionally to increase bank revenue.

Credit Downgrade Won't Hurt Consumers, the Downer is Still the Economy

It's not that nasty rating, no. The savvy customer will know it's the economy, in all its rotten glory; he/she has to watch out for.

New Mobile Wallets Have Hidden Costs

With new technologies, there are new surprises. According to Consumer Reports, services that connect to mobile wallets are not totally clear how much these services will cost consumers. There also isn't clarity as to what happens if fraudulent charges occur.

Debit Card Scammers Lose Big in Court

Short-term loan peddlers Matthew Patterson, Mark Benning, and Jason Strober, of Swish Marketing Inc., were recently ordered by a Federal court to shell out over $4.8 million. Reportedly, they swindled thousands of payday loan applicants who were hoodwinked into purchasing a debit card during the loan application process.

Banks Not Suffering as Much as Expected from Debit Card Reform

After an analysis of their second-quarter earnings results, consumer bank giants Wells Fargo & Co and Bank of America Corp both recalculated their estimates of expected revenue loss as a result of the Dodd-Frank Financial Reform Act and arrived at a lower figure than initially forecasted.

Consumers Pay More in Credit Card Payments than Purchases

A recent analysis run by the third largest credit bureau in the United States, TransUnion, reveals that consumers have been hard at work paying down their credit card debt.