Credit card news

Barclays eyes Oyster credit card

2006-12-13T07:56:00.000-08:00

A new contactless credit card combined with a London transport Oyster card, is to be launched by Barclays bankn.

It will combine standard chip-and-pin technology for credit card payments alongside that of the Oyster card.

But it will also allow customers to pay for low-cost items in shops without the card having to touch a reader or the user having to enter a pin number.

If the trial of the new cards is successful, they will be rolled out later in 2007 to Barclaycard customers.

Limits

The idea is that users will be able to use the "wave and pay" card to in shops with special new card readers, such as newsagents, pubs, and coffee bars, as well as car parks and vending machines.

The card owners will simply have to wave the card close to the reader and will not need to use either a signature or a 4-digit pin number.

Any transaction over £10, however, will still need a pin to verify it.

"In addition, users will on occassions be asked to enter a pin for purchasers below £10," said Barclaycard's Ian Barber.

"The system is chip and pin and uses the same technological protocols as a standard credit card."

Concerns

Contactless chip cards have inspired security concerns, particularly with their use in official documents such as passports.

Some researchers claim already to have cracked the encryption used to safeguard the information on the chips to be used in US passports.

Mr Barber, however, said that the system Barclays was using - to standards established by credit card group Visa - was distinct from the US systems, and was secure.

Testing period

The trial will start with Barclays staff using the new cards and card readers inside their banks and other bank buildings. Visa Europe is helping organise the trial.

It will then be extended to a few shops such as certain coffee bars.

The trial will combine two distinct elements; one for the combined credit/Oyster card and the other for the contactless technology.

Mr Barber stressed that the Oyster and credit or debit accounts would still remain separate.

"If you tap the yellow Oyster pad at a tube station, to buy a ticket money will be deducted from the Oyster account," he said.

"But if you pay for a coffee and a newspaper in a shop that will come from your credit or debit account."

Exclusive deal

The bank is confident that the combined credit/Oyster card will be popular, particularly in London.

But it will be relying on the trials of the wave and pay option before deciding on a definite commercial launch which would have national appeal.

The bank has struck a deal to try out the new cards and contactless readers with TranSys, the company that runs the Oyster card system with Transport for London.

The deal gives it the exclusive right, for three years, to put Oyster cards on its Barclaycard credit cards and Barclays Connect debit cards.

Other banks and credit card issuers are expected to adopt the "wave and pay" technology in due course.

How To Get a Loan With Poor Credit

2006-12-13T04:35:00.000-08:00

By Michael Louis

Poor credit loans are becoming more popular. Poor credit can happen to anyone. Maybe you need a poor credit loan because you missed a couple of payments on a prior loan, let your mortgage get in arrears, had a judgment against you or maybe even problems with your credit cards. Sometimes bad credit is due to circumstances that are out of your control, such as a divorce.

Until recently, a bad credit score would have made it close to impossible to get a loan. However, an increasing number of lenders are realizing bad credit is not the end of the world. Many lenders have come up with an array of secured poor credit loans.

A poor credit history does not necessarily mean you won’t be able to obtain a loan. In fact, homeowners are very likely to obtain a poor credit loan.

Poor credit loans are easy to apply for and can even be done online. Even with a low credit score and problems with prior loan payments, poor credit loans are available to homeowners. The equity in your house can be used to secure a poor credit loan.

Your credit score, also known as a FICO score, informs lenders what type of credit risk you are. A high score says that you pay your payments on time. However, a low score says you are at a greater risk for letting payments go unpaid.

Since credit scores mainly focus on the previous two years of your credit history, you can increase your score pretty quickly. Although it can take close to a year to see good results, it will be worth the wait.

If you are looking to increase your credit score there are some easy steps you can take. First, start by contacting the top three credit bureaus, TransUnion, Experian and Equifax. Analyze each report for both accurate and inaccurate information. Often, people will find simple mistakes on their credit report. Mistakes can unnecessarily lower your credit score and cost you more money in interest. Therefore, it is very important to make sure you report is correct.

After your have your report correct, begin making monthly payments on time. This alone will improve your credit score. A late payment will quickly knock down your credit score. Therefore, always pay your bills on time.

Next, take measures to decrease your debt. At least 50% of your credit should be unused. For example, if you have a $30,000 limit on your credit cards, you do not want more than $15,000 charged on them. In fact, the less that is owed, the higher your credit score.

Even though you have a bad credit score, there are still lenders out there willing to loan you money. Although there are steps you can take to increase your credit score, a loan may be needed in the meanwhile. Therefore, poor credit loans can be very useful.

Michael Louis is always on the look out for a good deal and enjoys sharing his secrets. Did you find these tips useful? You can learn more at All About Mortgages

Lower Your Rate By Refinancing Your Car Loan

2006-12-13T04:33:00.000-08:00

By Kate Ross

Refinancing a car loan is the best thing to do for those eager to reduce the monthly payments that expensive car loans imply that sometimes force consumers to keep doing sacrifices every month in order to honor their obligations. By refinancing you can bring some ease to your budget and to your life.

Disadvantageous Car Loan Terms

Those closing on deals for people with bad credit seldom get good loan terms and instead usually have to suffer disadvantageous loan stipulations that turn car loans into very onerous transactions. That’s why refinancing is a good choice once you can improve your credit or once market conditions push interest rates downwards.

Bad credit car loans usually charge higher interest rates that can sometimes be close to abusive. Moreover, the repayment schedules are not so stretchy and thus, the monthly payments tend to also be higher than those of regular car loans. This means that the income requirements for bad credit car loans can be incredibly strict as compared to traditional car loans.

Effects Of Car Loan Refinancing

The main reason why someone would want to refinance a car loan is to obtain a lower interest rate and so, lower the monthly payments of the car loan. A single point reduction in the interest rate can save you hundreds of dollars over the year and thousands over the whole life of the car loan.

Nevertheless, you should be extremely careful as with any loan (and a refinance car loan is after all a loan), there are costs and charges associated with the approval process that need to be at least compensated with the reduction of the interest rate. Otherwise the refinancing looses the economic sense as you may be getting a lower rate but paying an overall higher price for the money due to the additional charges and administrative costs.

If there is a no-cost refinancing promotion, you should go for it since these are the best options. The rate may be a little higher than other offers but as long as it is lower than your current rate, you’ll be saving money and getting better loan terms. Besides, you won’t have to worry about additional costs and fees that can turn the refinancing process useless.

Another Reason For Refinancing

There is another reason why someone may want to refinance a car loan. Though you won’t always be able to get a lower rate by refinancing, you can still get lower monthly payments by playing with the loan extension. A new repayment program including a longer repayment schedule will provide you with lower monthly payments that can be easily afforded without hassles though the loan may turn out a little more expensive in the long run.

Kate Ross is a professional consultant with fifteen years in the financial field. She helps people in the process of securing personal loans, mortgage, refinance or consolidation loans and prevents consumers from falling into financial scams. Smart tips and interesting articles on this subject and other financial related topics can be found at Speedybadcreditloans.com

Car Loans After Bankruptcy? Is It Realistic?

2006-12-13T04:32:00.000-08:00

By Kate Ross

Undoubtedly, it is possible to get a car loan after bankruptcy. But, how long do you have to wait before applying? What are your chances of getting approved? How can you boost your possibilities of obtaining your loan? All these questions are asked by those who have gone through a bankruptcy when contacting lenders. However, answering them is not that simple.

Advantages Of Car Loans After Bankruptcy

The secured nature of car loans contributes greatly to the approval process of applicants with past bankruptcies on their credit reports. The car to be purchased is used as collateral of the loan and in case of default; the lender can recover his money by forcing the sell of the vehicle so he can claim his investment from the purchase price.

Collateral greatly reduces the risk involved for the lender in the financial transaction and thus contributes to increase the chances of getting approved. The main reason why applicants with bankruptcy get rejected is because the risk they represent is too high. Thus, anything that reduces the risk, increases the likelihood of approval.

Requisites for Approval

One of the main requisites for approval when you’ve gone through a bankruptcy process is a suitable income to face the monthly payments on the loan. You need to be able to prove that you have a steady income by showing copies of paychecks or tax presentations if you are self employed. This requisite is very important and if you can’t show proof of a steady income, forget about obtaining a car loan after bankruptcy.

Also, even though it is obvious you won’t have a good credit score or history, there will still be credit requirements that you’ll need to meet in order to get approved. From the day your bankruptcy has been discharged on, your credit history must be impeccable. Any delinquency, even if it is a small one, would otherwise scare lenders away and compromise your chances of getting approved for your car loan after bankruptcy.

Bankruptcy Requirements

As regards to your bankruptcy, a prudential time must have passed since it was discharged in order to apply for any kind of loan. Most lenders will fix this period on two years and some lenders will raise it up to ten. Nevertheless, given that these loans are secured, it is possible to bypass this requirement provided that you have a suitable income. You’ll be required, however, to face higher interest rates due to the high risk involved in the transaction.

If you are still on a bankruptcy process, it is almost impossible to get approved for any kind of loan. Unless specifically authorized by the court due to exceptional reasons, you are not allowed to take loans during a bankruptcy process. Besides, it is impossible to think of a lender that would be willing to lend to someone being currently in bankruptcy

The Truth About Equity And Repossession

2006-12-13T04:28:00.000-08:00

By Kate Ross

These questions are to be asked and need thorough explanations with many legal concepts that are beyond the nature of this article. However, we can clarify some concepts and explain the basics about equity and repossession so you are well informed when searching for a suitable loan for your budget.

Understanding Equity

Equity is the difference between the home value and the outstanding debt guaranteed by the property. A home with a value of $100,000 and a mortgage loan of $70,000 has still $30,000 worth of available equity. This ideal portion of the property’s value can be used as collateral for a home equity loan.

With only a few differences, home equity loans are almost exactly as home loans. They are secured loans which can be guaranteed by the same property as a home loan, they charge a fixed or variable rate that is usually low compared to other types of loans and also provide longer repayment programs that can last up to 15 or 20 years.

Understanding Repossession

Repossession is a legal action the lender is entitled to when a property is used as collateral for a loan. This action lets the lender claim his money by forcing the lender to surrender the property. A proper definition would be: Repossession is the legal process by which a borrower in default is deprived of their interest in a property. The process usually means the property is sold or auctioned off with the proceeds going to the lender.

Basically, the legal action is feasible only when the borrower has defaulted on the loan. As long as the monthly payments are made on time, the lender can’t do anything. Some other loan terms may trigger the availability of the action but these loan conditions are not usual.

The process provides the lender with an alternative method for recovering his money which reduces the risk of the transaction significantly with excellent consequences for the borrower: low interest rate, higher loan amounts, longer repayment programs, lower monthly payments, etc. The only risk being the possibility of loosing the property in case of default.

Difference With Home Loans

The only difference between repossession on home loans and on home equity loans is a matter of preference. Since the mortgage is logged first, in case of default, the mortgage loan lender is preferred over the home equity loan lender. Thus, the property is sold and the money is first used to repay the mortgage loan. Only after that is completed, the home equity loan lender can make use of the remaining money to recover his investment. And that’s the main reason why, though home equity loans carry very advantageous loan terms, they are still a bit inferior than home loan terms.

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Keep Away From Credit Card Debt!

2006-12-12T08:51:00.000-08:00

By Sarah Dinkins

Each day, you are bombarded with credit card offers in your mail, and every time you are drowned in debt or in scarcity of finances, you are tempted by these offers. So, you end up applying for those credit cards, as you think that they will solve all your problems. When life seems difficult and unending debts mount-up on you, applying for credit cards seems the only option to help you out in paying back the loans. But to tell you the truth, you are at a fault, as in the process of enhancing your previous debts, and in the process to afford a luxurious life style; you end up drowning in credit card debt.

Being Wise

When you apply for credit cards, the most important thing that you have to remember is to use it wisely. Credit cards often make you to spend more on luxuries, and in return you land up in heavy debts.

You can avoid credit card debt by keeping an eye on your credit card report. It is advisable to make a note of all the transactions that you have made through your credit card. Maintain a record and make a habit. This can help you to keep a check on credit card frauds and other identity thefts.

Eliminating Debt

You can clear your credit card debts by clearing your initial debts first. If you want to stay away from credit card debts; analyze your financial position before hand to see if you are in the position to pay back the monthly payments on the credit cards. If you continue making your monthly payments on time, you will never get involved in any credit card debts.

Once you establish a payment plan to pay your credit card bills, stick with the payment scheme, until all the debt is paid off. If you want to avoid falling in the trap of credit card debt, you have to take a hard look at your finances. Analyze realistically if you can use them to make the monthly payments on your credit cards each month.

The best way to escape or avoid credit card debt is not to have credit cards at all! As soon as you apply for the credit cards you are enamored by their aura, and the services that you can avail by using them, and that is the basic reason why you land up in heavy debt.

In case you find it impossible to make the entire credit card monthly payment at once, you should at least try to pay back the amount that is in excess to the minimum due. And if you are knee-deep in debt, then you can tell your credit card company to lower your interest rate. Believe it or not, your request can really help you out in reducing your debts.

Sarah Dinkins is an Expert Loan Consultant at Badcreditfinancialexperts.com where she helps people to repair their credit and to get approved for home loans, unsecured personal loans, student loans, consolidation loans, car loans and other types of loans and financial products.

Low Mortgage Rate Hunting!

2006-12-12T08:48:00.000-08:00

By Sarah Dinkins

If you want to find out all about the best mortgage rate in town there are certain easy guidelines for you. First things first: get hold of all the knowledge about mortgages you can. This has to be followed by a good round of shopping for the most competitive and best mortgage rates in town.

A Time Consuming Research

Now, this may sound quite easy. However, it is a very time consuming task and will take a lot of effort on yours. People generally come to think about their mortgages after every five years or so. Now-a-days, however, the mortgage market is constantly changing. It actually changes almost every month. This implies a lot of work for you (the average consumer). So, you better get up and hit the market for mortgages.

There is a wide range of best mortgage rates. There are a lot of factors which contribute to fixing the best home loans like the location of the home, your past credit history, etc. Even what day of the week it is will make a difference! You must look forward to bag the best bank rate, one that is most affordable and reliable. In short, the best mortgage rate money can buy. The data regarding the best mortgage rates will be helpful in spotting the info on the best loan for a homebuyer. In the old days, homebuyers hardly had a choice apart from coping with fixed pre-defined rates. However, the choices now are numerous, albeit more complex.

Let’s talk about the resources to secure the best mortgage rates as a homebuyer. You have a variety of loans, ample number of brokers, lenders, bankers, and finance companies to choose from. It will be wise to shift through the vast information to find mortgage and mortgage rate.

Different Loan Sources

You must have worked hard for that house of your dreams. However, simply finding that won’t do. You must not short-cut the process of seeking the best mortgage rates in town. Finding the best mortgage rates ensures peace, and break from stress. There can hardly be anything worse than accepting a high mortgage rate which you are unable to pay. The financial anxiety it implies is overwhelming and the home you worked hard for may also be lost.

Traditional fixed rate mortgages and adjustable rate mortgages are both a viable option. There are also graduated-payment mortgages for buyers anticipating a pay rise, graduated equity mortgages to quickly earn equity on the home, and shared appreciation mortgages for homebuyers planning to sell the home soon.

There is a wide range of mortgages: No Money down Special, Fixed ones for 30, 20, 15 and 10 years. Among the jumbo categories there are 30, 15 years Jumbo. 5/1 ARM and 3/1 ARM are available in the ARM categories. These categories are dependent on interest rate and points.

Your current bank is the usual place to start your search for the best rate. Enquire with institutions after having known their profile. Give them only the info that they need to pass on advice for the best mortgage rates. While direct lenders finally lend you the money directly, brokers offer flexibility as they can choose from a number of lenders. Research the market, be patient and think with a clear head.

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Student Credit Cards – Merits and Demerits

2006-12-12T08:46:00.000-08:00

By Jin Kim

Credit cards for students have both advantages and disadvantages. Parents and students should be aware of the pros and cons of student credit cards. Some of the merits and demerits of using a student credit card are discussed below.

Easy solution to cash crunch: If you are staying away from your parents or living in a boarding school or in hostel, the student credit card will be very helpful. It is an easy solution to an unexpected cash crunch and becomes invaluable in times of emergency. The credit card can make you more self-dependent and free from worry of funds. It is like all time money.

Put a limit on spending: Student credit cards generally have very low credit limits and this will place a restriction on the total spending, forcing the student to think and plan their expenses. It will make users/students understand budgeting and let them think what is necessary and how money can be spent judiciously.

Parents can monitor children’s expenditure: If the student credit card is opened on joint ownership between student and parents, the bill will come to both of them. This way parents can know what way their son/daughter is spending. If parents find any unnecessary expenses, they can guide their children accordingly. It will help both the parents and students.

Incentives: Student Credit card providers woo students with various lucrative offers like rebates, cash back etc on the things students buy most, like books, CDs and clothes. You can take advantages of these offers. Moreover, student cards usually have very low APRs and other fees.

Credit record: Student credit cards are great opportunities for students to start building a good credit history. If you use your card wisely then you will build up a credit history that will help you to secure loans and mortgages more easily in future life.

Safe shopping: A student credit card enables you to shop safely and securely online. It is easy to carry and there will be no fear of losing money or becoming a victim of theft if you carry a credit card to the market. Even if you lose your credit card somewhere, you can inform the card company immediately and that will be made invalid. Later you can ask the company to issue another card in your account.

Easy to obtain: The other advantages of student cards are that they are fairly easy to obtain. There are hundred of banks and lenders offering credit cards without any charge. Moreover, the card providers do not ask for credit history of the applicants. Simply apply and the card providers will do everything till you get the card at your place.

Credit card can put you under debt trap: If misused, the credit card can put you under debt trap. If you do not pay your balance, then you will be charged high levels of interest and quickly create debt for yourself. These rates on student credit cards are often higher than that on other credit cards, and can outweigh the discounts and benefits you get.

Over-spending: There is also the danger that you will just spend too much money, and put yourself into debt that will harm your credit rating rather than improve it. Once you come under the debt trap, it would be difficult to manage your finances and this would harm your studies as well as put an unnecessary burden on your normal personal life.

Therefore, if you think there is any chance that you will not be able to handle the responsibility associated with a credit card, then, probably a student credit card would not be the best idea for you.

CreditMe.com is a free online credit cards review and application website. We offer credit cards selection from visa, master cards, discover, american express and many others. We have quite some categories and hundreds of credit cards selection to fit your need. Apply for a student credit card at CreditMe.com now.

Cahoot loan rate soars by a third

2006-12-11T09:14:00.000-08:00

Clare Francis at http://business.timesonline.co.uk

Cahoot, the Abbey-owned online bank that used to pride itself on offering competitive rates, will be charging loan customers nearly three times more than Bank rate from a week on Tuesday.

The bank enraged customers last week when it announced it was increasing the rate on its flexible loan from 9.4 per cent to 14.9 per cent on December 19, having already raised it from 9.1 per cent last Wednesday. Bank rate is currently 5 per cent.

Someone with a £5,000 loan paid back over three years, will see their monthly payments jump from £158.40 to £170.82, costing them an extra £149 a year, according to Uswitch, a price-comparison site.

James Alexander of Zopa, a lending site that cuts out the banks, said: “This is another classic example of the banks doing the dirty on their customers.”

Stuart Glendinning at Moneysupermarket, a comparison site, said the move showed the downsides of flexible loans. “Providers can up the rate at any time. This move from Cahoot serves as a reminder that people should read the small print before taking up any financial product.”

In its letter to customers, Cahoot does state that they can move to a different deal without penalty. Customers can apply for an Abbey loan with a typical rate of 5.8 per cent. There is no guarantee borrowers will get this rate, though, because it will depend on your credit score.

A survey of 11,000 loan applicants who used Moneysupermarket found only 48 per cent applying for the Abbey loan had been offered 5.8 per cent. The remainder had been offered 6 per cent to 9 per cent.

The number of personal loans below 6 per cent is dwindling. Northern Rock, Moneyback Bank and the AA have all recently increased their loan rates for new customers.

Nick White at Uswitch said: “People planning to take out a loan in the next few months should act now.”

Student loan threshold changes

2006-12-11T09:13:00.000-08:00

Student loan holders will now be able to earn a little more before having to make repayments.

The Government has announced a change in the income threshold for New Zealand-based borrowers based on the annual movement in the Consumer Price Index.

Student loan holders will now have to begin making repayments once they earn $17,800 dollars, an increase of just over $700 on the previous sum.

Homeowners struggle with mortgage debt

2006-12-11T09:06:00.000-08:00

By Rebecca O'Connor

The number of homeowners struggling to meet their mortgage repayments has risen for the fourth year running as house prices continue to grow, figures revealed today.

Reports of higher levels of household debt from the Bank of England came as the Government reported that house price inflation is continuing to strengthen. The annual rate of house price inflation went up in October, from 8 per cent to 8.6 per cent, according to the Department for Communities and Local Government.

There was a slight dip in the average house price in October, down from £198,552 in September to £197,987, but analyst said this was seasonal.

Meanwhile, the Bank of England's quarterly bulletin said that borrowers, especially those on low incomes with high levels of debt, are falling behind. Rising utility bills, unemployment and unexpected shocks such as divorce were also blamed for sending 7.7 percent of mortgage borrowers over the edge.

The figures will prompt fears that households are becomingly increasingly over-stretched as interest rate rises and higher utility bills begin to bite.

The number of repossessions almost doubled last year, from 4,620 in the first half of 2005 to 8,140 over the first six months of this year, according to the Council of Mortgage Lenders.

The Bank of England also expects that the number of bankruptcies could rise, as attitudes towards bankruptcy begin to relax.

The bank said that the percentage of people who know someone who has declared bankruptcy has risen from 21 per cent to 24 per cent and that people who know a bankrupt person are more likely to consider it themselves. But only 3 per cent of households reporting debt problems admitted to considering bankruptcy or an individual voluntary arrangement.

The report found that debtors in rented accommodation are more likely to have difficulty repaying unsecured debts on personal loans and credit cards than homeowners with mortgages.

Bad Credit? How A Secured Credit Card Could Help You

2006-12-11T09:02:00.000-08:00

By Joseph Kenny

Bad credit certainly can change the way you look at things, and the pinch of not being able to get the credit needed can make you more than a little frustrated. There may be, however, some help for you - in the form of a secured credit card. Here are some reasons why you may want to your secured credit card quickly.

Guaranteed Issue - Almost

Secured credit cards are not a great risk to the credit card company so they will issue them to just about anyone. The only thing that you need is to deposit the cash in a savings account to be able to cover the limits on the card. Some companies will require you to provide as much as 150% of the card limit, and others may ask for as little as 50%.

Building Credit

Using a secured credit card to build your credit can be very helpful. The key here, like any other credit card, is to make sure that you make the payments on time. You will want to see if the credit card company reports to at least one of the major credit bureaus. If they do not, then it cannot help your credit rating at all.

Fees Will Probably Be Applied

When you apply for your secured credit card, you will want to know exactly what fees are going to be applied to the account. Some people have reported fees so high that there was virtually no credit left on the card - even before they used it! There will also most likely be an annual fee, which could be a couple of hundred dollars, and a higher rate of interest.

The Main Thing To Remember

With this secured credit card you need to remember that its main purpose – in your case, is not to load it up with purchases as soon as possible. You are getting it in order to build your credit. This means you may only want to put a few small purchases on it and pay it off in full when the bill comes.

Some Things To Watch Out For

There are a number of secured credit card scams going on so you will most likely want to stick with the major credit card companies. Their fees will also be lower and you may even get most of your initial deposit back, possibly even with interest - as long as you pay your bills on time.

Another thing to watch out for is the requirement to call some 900 number in order to apply. From this type of call, you could be charged anywhere from a couple of dollars up to $50, and some of them even require you to make a second call - scam!

Be sure to compare secured credit card offers in order to find the best for your particular situation. Also, be sure to read the fine print before you apply. Some fees may apply just from the application process. By being wise, though, you can soon start to be on your way toward a solid financial standing, again.

Joe Kenny writes for CardGuide.co.uk, offering UK credit cards, visit them today to compare credit cards. Visit today: http://www.cardguide.co.uk/

A Home Can Hatch Money For You: Homeowner Secured Personal Loans

2006-12-10T00:32:00.000-08:00

By Amanda Thompson

A home is a place, where you reside in rest and spend the most peaceful hours of your life. It is always sweet for you as it provides you shelter. Now, have you ever thought that you can use your home for earning money? If not, believe it now. Because through homeowner secured personal loans, you can always avail money with the help of your home.

Actually, a secured loan is a kind of loan, where a person needs to place any of his assets as security for the loaned amount. This security could be in the form of borrower’s car, home, any valuable paper etc. Now, in homeowner secured personal loans, a borrower can only place his home as security. Here, borrowers avail loans against the equity of their home. But what does ‘equity’ mean? Actually, the word ‘equity’ implies the current market value of a home minus the outstanding mortgage balance amount of money.

Homeowner secured personal loans allow a borrower to borrow anything between £5000-₤75000. And the repayment period varies from 5-25 years, which is of course, a comfortable duration. Again, you can avail homeowner secured personal loans for any purpose and any reason. Be it the repairing of your home, buying a car or education of your child, you are always free to use it for anything you need.

Secured homeowner loans are open for all, irrespective of credit score and credit history. If you have a good credit score, you can use it. No problem if you have bad credit also. Because people having CCJs, IVAs, defaults, arrears, bankruptcy are also eligible for this loan. Moreover, by repaying the loaned amount in time, they can even get a chance to improve their credit score also. Of course, in such a case rate of interest tends to be slightly higher.

You can get homeowner secured loans from different sources. Banks, lending organizations, financial institutions to name a few. At the same time, you can access these loans from World Wide Web, which is perhaps the best of all other available sources. Through these method you can meet a number of online lenders, who are specialized in providing tips regarding homeowner secured personal loans. They will offer you several loan terms and quotes. Now, you have to select the lender, who will meet all your requirements with sound solutions.

Amanda Thompson holds a Bachelor’s degree in Commerce from CPIT and has completed her master’s in Business Administration from IGNOU. She is working as financial consultant for chance for loans. To find Homeowner secured personal loans, Debtconsolidation loan, Cheap rates, Personal loans, Secured loans, Unsecured loan at cheap rates that best suits your needs visit http://www.chanceforloans.co.uk

The Good And Bad News About Credit Card Debt

2006-12-10T00:30:00.000-08:00

By Keith George

It's not just your card payments you have to keep up. These require minimum payments made by a certain date each month and should you be unable to make the minimum payment or if your check arrives late, you get smacked with a hefty fee – on top of the interest rates that you continually accrue on all unpaid balances.

If you have a balance, and most people do as the average credit card debt is now between 9 and 10 thousand dollars, make a plan to pay it off as quick as possible. Finding a solution to this problem requires you to not only develop a plan, but you need to stick to it. Always plan a budget according to your income and spend accordingly. If you have a problem with the plan a debt management agency can assist in making one that can work for you. On average, debt management agencies can reduce your monthly payments up to 60%, and help you become debt free within a few years.

Credit card debt consolidation loans help consumers to roll all their debts into one single loan. This leads to cutting down high interest rates and can make the loans tax-deductible. Debt consolidation loans are always beneficial for consumers who are reeling under the burden of credit card debt. Information on debt consolidation loans can be obtained by visiting credit card debt consolidation services and also online.

Having poor budget management and credit control will simply make your debt elimination strategies futile. Now you know why Credit Card Debt Management is essential. Every year, more than nine million debtors go to credit card debt management agencies to evade a financial crisis without filing for bankruptcy. Hence the need for credit card debt management for a larger section of population is gaining importance.

It also provide a history to financial institutions and banks who can decline any further issue of credit cards or refuse a loan to consolidate the debts. People do not always realise or think about it but keeping an outstanding credit card balance is one of the most expensive financial arrangements you could possibly subscribe to. There are certain things in life that you will wish to avoid if you want to have a secure financial present and future for your self and your family.

If you have the opportunity to transfer balances to lower-interest cards, go ahead and do it - but keep paying that $300 per month, and keep allocating it first to the highest rate cards. It works even better if you use the lowest interest rate loan available - 0% balance transfer credit cards. And while 0% balance transfer credit cards are a bit more scarce than they were two years ago, they do still exist - and they have been joined by other low interest balance transfer credit cards schemes.

Work out the fees and the interest of your entire current accounts to check on the final reimbursements you are making at the moment. Even without late fees, exceeding a 20 percent interest rate on your credit card debt is easy. With the late fees ($29+ for missing your payment or exceeding your maximum), the money you can pay out then progresses into loan shark territory.

If you have a home of your own you can apply for a Home Equity Loan or Mortgage Refinancing. Today, many mortgage lenders advertise their services online. When mortgage lenders compute your credit worthiness for real estate financing, they deduct points for unfavorable department store credit lines.

Also remember that debt negotiation really does work. Credit Card Debt Settlement/Debt Negotiation is something you could probably do by yourself, however in most cases hiring professional help is the best way to go. When you have saved enough money in the account, your debt negotiation company will contact your creditors and settle your debt.

Keith George always writes about valuable news & reviews. A related resource is Credit Card Debt Further information can be found at Tips & News

Beware of gift card scam

2006-12-10T00:28:00.000-08:00

By Jim Harmening

My friend in Wales sent me a warning this week. I must admit, I usually don't read all of what Kelly sends, but this was a great warning, and I wanted to send it to all of you. It is about Christmas scams.

Gift card scam

Crooks have found a way to rob you of your gift card balance.

If you buy gift cards from a display rack, you may become a victim of theft. Crooks are now jotting down the card numbers in the store and then waiting for a few days before calling to see how much of a balance is on the card. Once they find the card has been "activated," they go online and start shopping.

You may want to purchase any gift cards from a customer service person. They give you gift cards that are not viewable to the public.

Shipping error scam

This one involves your credit card number being stolen and used at an online store. The scam is that the perpetrator actually sends the item to your house. Yes, you are sent the item that they are about to steal.

The thief calls up and says he is calling from a company. He is apologetic about an item being delivered by mistake and they want you to ship it back. They have an RMA number handy and an address. You don't even have to pay for shipping because they will send you a sticker so UPS or FedEx will come to your house and pick the item up.

You guessed it, they are shipping the item not back to the manufacturer, but to their house, P.O. Box, apartment, storefront, whatever.

The next month's bill comes and the item is still on it. You contact the credit card company and the vendor and they say that they shipped it and you received it. They know nothing about the RMA number or the address that you were sent. Crazy!

Out of stock

I want to rail on a few companies -- 42nd Street Photo in New York, for one, for not knowing that an item was out of stock when I tried to order it. Circuit City did the same thing to me and it was very upsetting.

You go through the entire process of ordering an item. It gives you a price and then when it is time for checkout and, in Circuit City's case, they wanted to backorder the items.

Nope! Not me! Cancel, cancel, cancel.

42nd Street Photo was even worse, I checked out, gave my credit card info and received a generic e-mail that said they were backordered and I had 24 to 48 hours to respond to the e-mail or they would continue my order. I copied my reply to myself so I would have proof that I canceled the order!

For those of you who are still not distressed enough to not shop online, I have some organizational tips for you. Though my wife, Nancy, has much better organizational skills, I have much better computer skills, so I get to do the typing/ordering. She just makes the lists.

You should always make sure they have a physical address and phone number on the Web site. If they aren't "real," then you might want to shop elsewhere. You might even try the phone number to see if a live person answers. If they don't answer, don't buy.

If they do answer, then you can make your online order. After your order is completed, make sure you print out the order form from the Web site. You also will have to put in an e-mail address. A confirmation e-mail is usually sent. Print it out too. Keep those in a file and pull them out when your items arrive! Cross check your credit card and make sure your items were received. If they haven't arrived and your credit card has been charged, you will need to contact the company and get shipping confirmation. Otherwise contact your credit card company to cancel the payment.

Next week: I didn't get to the Nintendo DS cheats -- maybe next week!

Jim Harmening is president of Computer Bits Inc., an Orland Park computer services company. Send questions to Jim in care of Mary Beth Sheehan at info@bitsmail.com or at www.computer-bits.com. Personal responses are not always possible. Questions may be used in future columns.

Debt Consolidation Loans - When Debt and Bad Credit is No Longer a Problem

2006-12-09T06:38:00.000-08:00

By Dirk Wagner

Debt is undeniably vicious once not managed carefully, yet bad credit is more vicious than debt especially if ignored completely.

One of the two 'wildest animals' in the world of finance could be a major threat for individuals who do not know how to handle their finances carefully. In fact, there are thousands of individuals in the United States alone who have lost their home and other valuable properties because of piles of debt and lost their creditor's confidence because of poor credit management.

In other words, debt and bad credit could destroy an individual's life financially.

Debt, as we all know, could be acquired through a series of unnecessary purchases, especially if you are using different forms of credit, such as credit cards and promissory notes. Since you are aware that you can still make purchases even in the absence of cash, the tendency is that you will ignore the amount that you will spend on buying several things. After all, you will be billed at the end of the month. At that time, probably you have sufficient cash to pay to your credit card providers. Such mentality paved the way to the accumulation of tons of debts until such time that they cannot get out of the mess that they have entered.

Bad credit eventually came from debt itself. Once you have defaulted on several debts, there is huge tendency that it would influence your credit ratings and eventually lead to a bad credit rating. Aside from debt, other factors that can tarnish your credit rating include existing mortgage arrears, county court judgments on a credit-related case, and others. In other words, possessing a bad credit rating means you have a lesser capability in terms of making repayment. That is one of the reasons why an individual with bad credit rating is having a hard time securing loans from different financial institutions.

Despite of the negative impacts of debts and bad credit on the financial life of an individual, there is still ways to repair your tarnished credit history and eventually pay all of your debts within a specific time frame.

And that is through securing a bad credit debt consolidation loan.

Swimming in a pool of debt or possessing a bad credit does not disqualify you from getting a debt consolidation loan. In fact, there are now debt consolidation firms that offer loans to help individuals with bad credit ratings, thus paving the way to the birth of bad credit debt consolidation loans. Aside from letting you borrow money to pay off your existing debts on easier terms, you will be provided with a wonderful opportunity of repairing your stained credit record by making monthly consolidated loan payments on time. Once you have succeeded in doing this, you will be able to improve your credit status while reducing your debts at the same time. That is why bad credit debt consolidation loans are considered to be as credit repair loans.

With bad credit debt consolidation loans, debts and bad credit is no longer a problem. You will be able to fix your tarnished credit rating while at the same time reducing the debts you have incurred.

The viciousness of the two 'wild animals' in the world of finance is reduced, thanks to the bad credit debt consolidation loan.

Dirk Wagner regularly writes informative reports on information much like debt consolidation. From his works, the author demonstrated his expertise on topics related to debt consolidation loans and credit repair.

How To Improve My Credit Rating

2006-12-09T06:34:00.000-08:00

By Niall Mehaffey

Credit rating is something that many people have problems with and this is something that you should definitely be aware of as if you ever want to get a loan or new credit cards then you will need to have a good credit rating, there is no way around it. It also affects your interest rate on loans and can even affect some job applications.

Here are few ways for how to improve credit rating:

Keep your accounts in order - What do I mean by this? Simple, don't open a whole load of new accounts, instead, try to keep to as few as possible and try to resist the urge to open new ones regularly, if you have everything in order and not all over the place it will be much better.

Make payments on time, always. This is very important, you have to make the payments you are required to and make sure you make them on time, otherwise it will be reflected in your rating, if you are known for regularly not meeting payment deadlines, you will have less chance of being approved for new credit.

Your length of credit history is important. Think about this, two people want to get new credit, one has a history of five years and has been making payments on time and keeping everything in order, the other has a history of only one year and also has everything in order and payed, who is more than likely to be "trusted" in this situation? Obviously the person with the more history will be.

Don't apply for new credit with different accounts in a short amount of time. If you are opening new credit accounts within short periods of time, as in, you open three or four within a week, it will look as though you are jumping in ahead of yourself and may have problems in the future, so don't open new accounts in short periods of time.

Your debt amount. If you have a large amount of debt owed then it would be silly for companies to loan you even more money and so they more than likely won't, try your best to keep your debt as low as possible.

These are just a short few ways to improve credit rating, there are many other things you can do and I would suggest you look into these and keep yourself in a good position otherwise you might have big problems in the future.

Discover the secrets to having the best possible credit you can at:

http://the-internet-marketer.com/ImproveYourCreditEasily It is the definitive guide to credit!

You can Fly Your Flag with Sports Credit Cards

2006-12-09T06:30:00.000-08:00

By Morgan Hamilton

Do you love to express your passion for sports? If you do, then you should consider getting sports credit cards. You see, credit card companies realized that sports could attract people to their credit cards. As a result, these companies decided to create sports credit cards that allow people to express their passion for sports.

You can now showcase your love for sports on your credit card. Sports credit cards have become one of the best selling credit cards because they showcase sports logos and themes which people are passionate about. These images are printed on the credit cards. You can show your support for your favorite sport or sports team every time you use your credit cards.

You can find a card for almost every sport imaginable. There are general sports credit cards like ones for Major League Baseball, the National Hockey League and the National Football League. You can also get credit cards for individual sports teams such as the New York Yankees or Dallas Cowboys. There are also sports credit cards that are dedicated to other sports like NASCAR, hunting and even the American Quarter Horse Association.

Some people sign up for sports credit cards because of the rewards they can get through reward programs. You can appreciate the unique rewards that sports credit card offer. For example, you earn rewards for every purchase you make with the NFL Extra Points card. You can also get NFL merchandise and tickets to special football camps as rewards.

You can also get the NASCAR Race Points card that offers a special incentive along with rewards. You will get a free NASCAR licensed chair after your first qualifying purchase and earn point rewards that can later be redeemed for a NASCAR experience. The Bass Pro Shops Outdoor Rewards card offer big rewards on merchandise purchased at Bass Pro Shops and other rewards for purchases made elsewhere. These are just some of the benefits that you can get by using sports credit cards.

Morgan Hamilton offers expert advice and great tips regarding all aspects concerning Sports Credit Cards, including assistance with Chase Credit Cards Online. Get the information you are seeking now by visiting getqualitycreditcards.com.

How To Avoid Credit Card Frauds And Scams For The Holidays

2006-12-09T06:27:00.000-08:00

By JB Anthony

It is inevitable that as the season for giving – and shopping – is fast approaching, we find ourselves turning more and more to our credit cards for quick purchases. Credit cards are not only perfect for shopping in brick and mortar shopping centers but it is ideal for online shopping as well. With online shopping, you get to beat the holiday rush and you get to pick your choices from different shops with just a click of your mouse and without having to spend on gas and stilettos depreciation!

However, as shopping has become more technologically-advanced, so has fraud and theft too! And while we have pickpockets in stores, so too do we have identity theft in the online transactions and use of credit cards!

Identity theft and other fraud surrounding credit cards are inevitable. How ever, a wise credit card holder can always make identity theft and other fraudulent acts difficult to thieves, thus discouraging them to make the fraud.

Here are some practical tips on how to avoid credit card frauds during the Holidays.

1. Read about identity theft There’s nothing more powerful a tool than knowledge of what you are up against. Equip yourself with the latest weapon of know-how on how identity thieves operate and how they can get hold of your most private information: your credit card number. Reading about identity theft will make you aware of the gravity of this criminal act and on the dangers they present not only on your financial life through your credit cards but also in your personal life.

2. Secured Shopping Shop only on online stores and online merchants that require you to enter pin and passwords as you type in your credit card account number. Or, shop only on online merchants whom you have tried before and have certain security measures for their online shoppers.

3. Monitor credit reports and financial statements Always review and monitor credit reports of purchases you have made online and in actual brick and mortar store. If any suspicious transactions are made, clarify the matter immediately with your credit card company.

JB Anthony is the webmaster of http://www.guide-to-credit-cards.com. To apply for your credit card online, to have your online application instantly approved, to search for your ideal credit card, or to read more about credit and debt management, please log on to http://www.guide-to-credit-cards.com

Store worker gets prison term for credit-card fraud

2006-12-09T06:25:00.000-08:00

A former Camden County appliance store worker was sentenced to more than three years in prison yesterday for stealing 100 customer credit-card numbers, which he used to steal for himself, authorities said.

Jason Hughes, 23, of Gloucester Township, pleaded guilty in July to bank fraud charges. In addition to his 39-month prison sentence, Hughes will be required to pay $38,520 restitution to Commerce Bank, said Greg Reinert, spokesman for the U.S. Attorney's Office.

Hughes worked for Lakes Appliance in Gibbsboro when he downloaded the credit-card numbers from the company's computer, Reinert said.- Sam Wood

MoneyExpert.com - Apacs: Credit card users choose provider, not scheme

2006-12-09T06:22:00.000-08:00

Consumers who compare credit cards and intend to apply for one do not make their choice based on the scheme but the provider, it has been claimed.

According to UK payments association Apacs, borrowers are not concerned about whether the card they choose has the Visa, Mastercard or American Express symbol - as long as it is contains one of them.

Apacs suggested that the credit card user only considers this aspect when it comes to paying, which they are able to do across the globe with any of these card schemes.

"If your card is obviously badged with one or the other it means that you can use the card worldwide," said Jemma Smith, a spokesperson for the financial organisation.

"I don't think anyone can honestly say that they take which badge is on the card into consideration when they apply for a credit card," she added.

Apacs' comments come as it was revealed that Maestro debit card holders who lost money in the collapse of savings club Farepak may not be able to claim their money back, whereas those who used a credit card to deposit money into the fund may be protected.

Health Grades plans credit card offering

2006-12-07T18:41:00.000-08:00

Health Grades Inc. said Thursday it will introduce a co-branded credit card next year that will allow users to accumulate "health care points."

The Golden company (NASDAQ: HGRD), which rates hospitals, doctors and other health care providers, said the program will work similar to how someone using an airline-branded credit card can accumulate mileage points.

"This is a proven concept in other industries, but it's an absolutely new concept in health care," said Steven Wood, executive vice president of Health Grades.

Wood spoke during a conference call to investors.

He said a consumer using the credit card -- which could bear the brand of a hospital, health plan or medical practice -- could redeem health care points for discounts on prescriptions or lower co-payments, for example.

Wood said he was hired four months ago primarily to "create new things."

Health Grades, which operates online at healthgrades.com, intends to increase visibility and industry awareness of the company in 2007.

To accomplish that, Health Grades will introduce a series of new products. New in the first quarter will be ratings of oncology centers and ambulatory surgery centers. The company in February will release its first-ever ranking of the 50 best hospitals in the United States. And in the second quarter Health Grades will release its first ratings of dialysis centers.

Mboweni slams credit-card binge

2006-12-07T08:34:00.000-08:00

By Erika van der Merwe

Imagine the irony of blithely offering a central bank head a credit card, particularly at a time when he and his policy team are losing sleep over credit growth and household indebtedness.

It was an unamused Reserve Bank Governor Tito Mboweni who related the story of being offered a Voyager credit card while waiting for a flight; it seems that, like many other South Africans, he and his staff have been the target of banks’ and other institutions’ credit-card splurges.

Mboweni said that he had met with banking heads recently to discuss this “worrying trend” of the increasing availability of credit cards, and that the institutions appear to see nothing wrong with it.

He warned that if this rise in the availability of credit cards continued, the Reserve Bank may have to toughen up on its reserve requirements – the proportion of deposits that banks are not permitted to lend out.

“If moral suasion does not work, action will be taken,” he said. He refused to elaborate on the nature of the possible policy response.

Michael Power, strategist at Investec Asset Managers, says it seems the governor does not like using interest rates as his only policy tool and that he may well force banks to lift their cash ratios.

Besides, “the consumer cat is out of the bag and it is proving to be very difficult to get it back in”.

But Coronation Fund Managers’ financial sector specialist, Neville Chester, suggests that there is a more direct solution for the Reserve Bank’s concern about credit card extensions: it could increase the interest rate charged on credit cards.

A number of credit-card companies peg their interest rate at the level of the usury rate; this rate has not been adjusted this year, in spite of the 200 basis point worth of rate hikes implemented since June.

The Department of Trade and Industry sets the usury rate, which determines the maximum interest rate that financial services and retail companies can charge for credit. Micro-lenders are exempt from this rate, which will fall away with the implementation in June of the National Credit Act.

“It is no wonder that consumers are spending more,” Chester says; “the [interest rate] signal is simply not getting to consumers, which is part of the reason why we are not seeing a slowdown in consumer spending”.

One can argue that financial institutions are being given mixed signals about how they should be behaving in the lending market. While the Reserve Bank appears to be up in arms about credit growth, banks have signed the Financial Sector Charter, according to which they undertake to extend credit to a broader spectrum of South Africans.

“This is clear, for instance, from Abil’s numbers,” Chester says; “banks are attacking part of this micro-lender’s market by extending credit to lower income groups. ”

“Credit-card debt is a very attractive way to extend banking services to the lower end of the market, since this facility is cheaper than processing a personal loan application,” he says.

Listed banks lost ground on the comment by the Reserve Bank governor, on a day that the rand strengthened.

Air Deccan's `credit card masking system'

2006-12-06T20:00:00.000-08:00

The first low-cost carrier, Air Deccan, has scored another first by introducing "credit card masking system" for customers who book tickets through its call centre to offer enhanced security.

With over 10 per cent of Air Deccan's total bookings being made through the call centre, the airline thought it fit to offer extended security. Instead of providing details of the credit card to the call centre agent, the customers can now make payments through the interactive voice response system (IVRS).

The IVRS would procure the credit card details without any manual intervention making the customer feel safe. Credit card holders in the country were known to be wary of providing details of their cards to intermediaries. The new system attempts to dispel their concern as credit card details are encrypted as soon as they are punched in, eliminating all security concerns, said a release from Air Deccan.

The airline began operations in August 2003 with one aircraft and the number of calls hitting the call centre a day averaged 500. At present, the calls have gone up to 25,000 on peak days with an average of 15,000 calls a day. The 276 employees at the call centre could manage to convert 70 per cent of the callers to passengers.

Air Deccan Managing Director G.R. Gopinath said, "Using cutting-edge technology, we have introduced a unique security system which will take e-commerce to a different level in the airline industry. Apart from giving a fillip to our call centre sales, the Credit Card Masking System will provide a 100 per cent secure booking environment for our passengers."

credit card scam

2006-12-06T19:59:00.000-08:00

This one is pretty slick since they provide YOU with all the information, except the one piece they want.

Note, the callers do not ask for your card number; they already have it. This information is worth reading. By understanding how the VISA &MasterCard Telephone Credit Card Scam works, you'll be bet! ter prepared to protect yourself.

One of our employees was called on Wednesday from "VISA", and I was called on Thursday from "Master Card".

The scam works like this: Person calling says, "This is (name), and I'm calling from the Security and Fraud Department at VISA. My Badge number is 12460. Your card has been flagged for an unusual purchase pattern, and I'm calling to verify. This would be on your VISA card which was issued by (name of bank). Did you purchase an Anti-Telemarketing Device for $497.99 from a Marketing company based in Arizona?" When you say "No", the caller continues with, "Then we will be issuing a credit to your account. This is a company we have been watching and the charges range from $297 to $497, just under the $500 purchase pattern that flags most cards. Before your next statement, the credit will be sent to (gives you your address), ! is that correct?"

You say "yes". The caller continues - "I will be starting a Fraud investigation. If you have any questions, you should call the 1- 800 number listed on the back of your card (1-800-VISA) and ask for Secur ity.

You will need to refer to this Control Number. The caller then gives you a 6 digit number. "D o you need me to read it again?"

Here's the IMPORTANT part on how the scam works. The caller then says, "I need to verify you are in possession of your card". He'll ask you to "turn your card over and look for some numbers". There are 7 numbers; the first 4 are part of your card number, the next 3 are the security Numbers' that verify you are the possessor of the card. These are the numbers you sometimes use to make Internet purchases to prove you have the card. The caller will ask you to read the 3 numbers to him. After you tell the c! aller the 3 numbers, he'll say, "That is correct, I just needed to verify that the card has not been lost or stolen, and that you still have your card. Do you have any other qu estions?" After you say No, the caller then thanks you and states, "Don't hesitate to call back if you do", and hangs up.

You actually say very little, and they never ask for or tell you the Card number. But after we were called on Wednesday, we called back within 20 minutes to ask a question. Are we glad we did! The REAL VISA Security Department told us it was a scam and in the last 15 minutes a new purchase of $497.99 was charged to our card.

Long story - short - we made a real fraud report and closed the VISA account. VISA is reissuing us a new number. What the scammers want is the 3- digit PIN number on the back of the card. Don't give it to them. Instead, tell them you'll call VISA or Master card directly for verification of their conversation. The real VISA told us that they will never ask for anything on the card as they already know the information since they issued the card! If you give the scammers your 3 Digit PIN Number, you think you're receiving a credit. However, by the time you get your statement you'll see charges for purchases you didn't make, and by then it's almost too late and/or more difficult to actually file a fraud report.

What makes this more remarkable is that on Thursday, I got a call from a "Jason Richardson of Master Card" with a word-for-word repeat of the VISA scam. This time I didn't let him finish. I hung up! We filed a police report, as instructed by VISA! . The police said they are taking several of these reports daily! They also urged us to tell everybody we know that this scam is happening.

Please pass this on to all your family and friends. By informing each other, we protect each other

Top Ten List of Worst Credit Card Company Practices

2006-12-06T19:57:00.000-08:00

By Walter Burch, Editor-In-Chief
CreditLearningCenter.com

The following list will come as no surprise to those who have felt the sting of credit card industry practices– or listened to cardholders as they tell horrifying tales of exorbitant rate hikes, hidden fees, indecipherable cardholder agreements, or “bait and switch” marketing offers.

However, it bears noting that, while the credit card industry has long been attacked for its aggressive marketing and usurious interest rates, the situation today has escalated to the boiling point, and many Americans see no way out. What is most disturbing of all, however, is the fact that the credit card companies continue to send the clear message that they simply don’t care about their customers.

This statement grossly understates the real tragedy: Not only do credit card companies show little concern for customers, but they rely more and more on the financial missteps, misfortunes, and even innocent changes in a consumer’s “risk profile” to trigger a growing number of “gotcha” fees and penalties that have become financially devastating to increasing numbers of cardholders. Of course, what’s tragic for the customer is very, very “good” – and very profitable for the credit card companies.

The bottom line: You need to know the truth about the majority of credit card companies. It is by design that they are located in states with little or no restrictions on how much interest they can legally charge you (Delaware, South Dakota, etc), and they have spent great sums of money in discovering legal loopholes to separate you from yours.

Despite all of this, credit cards can be useful to carry. They can help us track expenses, establish credit, demonstrate our credit worthiness to lenders, even provide us with a shield of protection in making purchases. However, considering the growing level of interest rates, crippling and confusing fees, penalties, and other anti-consumer practices employed by credit card companies – they can also destroy the financial futures of unsuspecting cardholders and their families. Know what you’re up against.

Cardholders, then, are urged to use credit cards sparingly, check credit card statements carefully, and pay them as soon as possible to avoid late fees and penalties. Also, take the time to carefully understand the fine print that is contained in credit card agreements, and be careful not to become trapped by one or more of the following credit card company ploys that have become more and more common in the credit card industry:

1. Universal Default Interest Rate Ladder –Your credit card company can double or even triple your interest rate due to a perceived change in your credit picture even if you have a perfect payment record with them. What’s more, your jacked up rate can apply to your entire balance, not just new charges moving forward. If you see an agreement with this clause, don’t accept the card – run! Take your business elsewhere if at all possible.

Chances are, you may already have a card with this clause, so beware! Your credit card company will periodically scan your credit report for one of several Universal Default triggers: Even a single late payment on another credit card, your mortgage, or utility (phone, gas, electric); Exceeding your credit limit on just one of your cards; A credit score that declines; Taking on a new home mortgage or auto loan; Having too much overall debt; or Simply applying for additional credit. When do most consumers discover Universal Default? When they get their credit card statement and begin to hyperventilate. By then, it’s too late, and the iron door has been slammed shut.

2. Outrageously High Interest Rates– There’s gotta be a law against pillaging. No, there is no federal limitation on the interest rate a credit card company can charge. There may be a law in the state where you live, but probably not in the state where your credit card company is located and that’s what counts. Eight of the top ten credit card companies are located in states with no cap on interest rates; the other two are located in Arizona (with a cap of 36%).

3. “Please Be Late” Policy - Late fees have become a cash cow for the credit card companies. So much of a cash cow that many companies now mail your statement as close to the due date as possible. If you receive it only ten days before it’s due, you better be on the ball or you’re headed for a juicy late fee. Beyond the day your payment arrives, many set a specific time of day when your payment must arrive. One minute late and you’re hit with another late fee. The reward for card companies: Late fees, which averaged about $13 in 1995, now average $34 as one bank after another has played follow the leader and jacked up their late penalty booty to stay sharp and competitive.

4. Two-Cycle (Double-Cycle) Billing- How would you like to be charged interest on debt you have already paid off? It can happen if your card comes with double-cycle billing. This confusing two-cycle average daily balance method calculates your charges by taking the sum of the average daily balance for two billing cycles. The first balance is for the current billing cycle, the second for the previous one.

5. Confounding Cardholder Agreements – Credit card issuers go to great lengths to carefully design cardholder agreements that few people can encode. The result: The true cost of a credit card, and its risks, are hidden from the consumer – until the statement arrives. If credit card companies insist it is necessary to accommodate risk by charging exorbitant rates and fees, do they also insist that they should be carefully hidden, hard to detect?

6. Pre-Approval Scheme – What this really means is you are not approved. You may be, but you aren’t yet. However, the word, “approved” has a nice ring to consumers so it’s the perfect way to offer a low interest rate card to folks who fall for the trick. Check out the fine print in the offer and you’ll find that if you “fail to qualify” for the rate offered, you can be issued another card. Beware, that substitute card may take you to the cleaners. Furthermore, it’s likely you received this offer because you have been carefully chosen, via “predictive modeling” as having the perfect credit profile for this “bait and switch.” You can opt out of most pre-approved credit card offers by calling 1-888-5OPTOUT.

7. Customer Service Nightmare – Apparently credit card companies have designed their customer service not to assist customers, but instead the maze-like system of waiting queues seems orchestrated to break the will and spirit of consumers to the point that we often “throw in the towel” convinced that we’re engaged in a frustrating, time-consuming, and hopeless pursuit.

8. How About a Raise? Credit card companies can raise your interest rate at any time, for any reason, upon 15 days notice. Check your mail.

9. Balance Transfer Fees – Here’s an offer you may want to refuse: Transfer your balance to a card with a low introductory rate. Beware of the tricky transaction fee for transferring that balance: Normally 3% to 5%.

10. You’re Over the Limit—It used to be that credit card transactions that put you over your credit limit would be denied. Today, the credit card companies are only too happy to approve them, and then sock you with over-limit fees up to $39. Pay especially close attention to this one. This is not a one-time over the limit fee. It will chase you, month after month, until you bring your balance below the limit.

What to Do When Your Credit Card Interest Rate Increases

2006-12-06T19:56:00.000-08:00

BY Stephen Snyder

"I was just informed the interest rate on my credit card is jumping from 10% to 29%. I've never made a late payment. I called my bank and they told me it's because some of my other credit accounts were highly utilized."

That's exactly what happened to my friend Kyle recently.

Because he was close to his credit limits on unrelated accounts his bank legally jacked up his interest rate nearly 200%.

The practice is generally referred to as a "universal review." And more and more lenders are using this trick to fill their pockets at the expense of an unknowing public.

Kyle didn't have late payments with the credit card that raised his rates. In fact, he didn't have any late payments on any credit cards. However, his lender simply decided that because Kyle was using his other credit, he somehow became a greater credit risk to them—so they nearly tripled his interest rate.

This situation hasn't only happened to Kyle. You see, I have several friends that hold high positions within the banking industry. Here's a recent comment from one subscriber who works as a credit analyst for a major national bank. This information is so hush-hush he's asked us to keep his identity secret:

"...Everyday in my job as a credit analyst I see so many mistakes people make with their credit. You are right, most all lenders do a universal review, especially credit card companies. When we review a card member's credit bureau report (CBR) we are assessing risk to the bank and our goal is to reduce risk and exposure. When we find risk we either lower the credit line, increase the APR, or close the account. That is why account performance and utilization of revolving trades is so important..."

As you can see, Kyle's situation could have been worse. The lender could have closed the account or lowered his credit limit.

And the credit analyst went on to say...

"...A lot of times we are using old income information when making a decision. Usually, when we see something that doesn't fit the card member's profile, we will call to try and get updated information such as current income and reasons for recent delinquency on their credit reports or their account with us. If we can't get them on the phone the moment we call we have to make a decision with the information we have. And that information can be several years old. If the income we have on file is older than six months I can't use it and need to call. If I don't get the card member I have to make my decision right then—I can't wait as we review thousands of accounts a month. So it is in the card member's best interest to call the credit card company and give them updated income information and any explanation for delinquency or increased utilization."

So what do you do?

First of all, if this has not happened to you, I wouldn't get overly concerned just yet. Just be aware that nearly half of the credit card lenders do some sort of universal review and it's a growing trend. To be on the safe side, whenever your income increases you should call your credit card lenders and let them know—make sure they note it in your file.

If your credit card lender does conduct a universal review on you and you're negatively affected by their decision—here's what to do:

Contact your lender immediately and determine why the lender feels you're a greater credit risk...and then fix it, if it's fixable. It could be as simple as giving them updated income information.

If the lender's answers don't sit well with you, begin interviewing new lenders. Call and request credit card applications. To determine if a credit card lender uses universal review, do this: go to the disclosure form and find the headline "Other APRs," then look for the term "default rate." That should tell you what you need to know. And if you're comparing credit cards you already have, and cannot locate the original application you signed...call each lender and ask them for a copy of your application with your current account's terms and disclosures. You need to know your current terms, as they may not be the same as the original offer you received.

After you have compiled your list and found a lender that will give you acceptable terms and rates, contact your original lender and tell them you are considering closing the account.

Remember, before you begin this cat & mouse game, have a "Plan B" in place. Just make sure "Plan B" doesn't use the same or worse practices as your original lender.

Just be aware of card tricks. Not all lenders use them (thank God), but be careful of the ones that do. Lenders have lowered the bar on their ethics. It's up to us to read the fine print and play their game.

Bossier City resident accused in stolen checks, credit card case

2006-12-06T19:53:00.000-08:00

By Adam Kealoha Causey
acausey@gannett.com

A Bossier City man was arrested today after police said he bought more than $4,000 worth of merchandise with stolen credit cards and checks.

James Brett Harte, 37, was booked into the Bossier City Jail on forgery charges, among others, Bossier City spokesman Mark Natale said.

Shreveport police had recently arrested Harte on unrelated charges, he said. They then discovered he looked like a man shown in video surveillance from stores on both sides of Red River using stolen checks and credit cards.

The checks and credit cards were reported stolen Oct. 30 in conjunction with a carjacking. Bossier City officers asked for help in identifying a man who tried to use a check with a woman’s name on it at the Sears in Pierre Bossier Mall that day.

The man tried to buy a plasma television, among other items. Sears personnel refused to accept the check, and the man left the store while the employee called police.

Store personnel gave police the woman’s name printed on the check, and an investigation showed it is the name of an 81-year-old Shreveport woman.

Bossier City and Shreveport police had been conducting a joint investigation.

Eliminating Debt and Avoiding Bankruptcy - Debt Management

2006-12-06T19:50:00.000-08:00

By Johnathan T. Bakers

Americans generally have one thing in common – debt. Were you expecting something else? Sadly, whatever plans we make or whatever we claim when we are in our youth, we manage to some how get into debt. For most people, especially applies to student type loans and credit cards. Yes, college somehow changes how we do things. Next thing you know you are married with some children, a hefty mortgage, car repayments and mountains of credit card type debts. It’s now time to eliminate credit card debt today. Of course you must be asking how this can be done, and get it done today? Well, hopefully you are a movie fan because ‘Heat’ isn’t so far from the truth. Eliminating credit card debt that way is foolhardy because jail is not where you want to go. Your interest would go even higher. Ouch!

Yes, everyone wants to know the secret to getting rid of credit card debts the fastest way possible. That goes without saying. The question should be – how do we start? For some of you this will be a major challenge, but for me it’s simple. Frankly the most sensible thing to do right now is to evaluate how many cards you have and how much interest you are paying on them. Yes, write it down now! How miserable does it appear? Now you need to get onto the Internet.

The Internet is a fantastic tool for searching and researching eliminating this type of debt permanently. So open up that search engine and let’s learn how to consolidate debt. You need to understand how to consolidate all those ugly balances into one much lower monthly repayment. The trump card is the interest, lower interest than you are currently dealing with. You may need to consider getting a loan or doing a transfer of your balances onto one single low interest card. The key is APR. High interest as you know is a killer. Why pay out more than you have to, right? This exercise is about getting rid of that debt now.

The fact is that paying off this type of debt takes time. Fast is not necessarily fast, but a slower and necessary process. The important thing is to lower those payments. With the help of the Internet you can research the best ways to consolidate your credit card balances and avoid bankruptcy, maybe get some advice about debt management. No time like the present, so get to it!

Johnathan Bakers often pens informative papers on areas relating with investing and debt relief. Recording his experience in detailed writings, the author improved his capability on problems relating to how to eliminate credit card debt and investing.

Protecting Yourself from Identity Fraud

2006-12-05T22:01:00.000-08:00

By Benedict Rohan

Your identity is extremely valuable. You need it to prove who you are for various purposes in your day-to-day life, such as opening a bank account, obtaining a loan, getting a credit card, purchasing goods or services, applying for a passport or driving licence, or claiming benefits. If a criminal gets hold of your personal details, they can do exactly the same things in your name without your knowledge. And it’s not rare for this to happen – the problem of identity theft is increasing all the time and the Home Office estimates that it costs the UK economy £1.7 billion a year.

It’s therefore extremely important to keep your personal information safe. There are lots of things you can do to protect yourself from identity fraud. This practical factsheet provides some useful tips and information on how to do this.

Ways in which your identity might be stolen

A house burglary in which personal documents are stolen. Handbag or wallet theft. Fraudulent internet or phone banking scams in which you inadvertently give out personal details to fraudsters in the belief that you are being contacted by a legitimate organisation such as your own bank. Post in your name being delivered to a previous address of yours and used to commit fraud in your name. Having your post stolen or redirected without your permission. Internal systems fraud – for example, payroll data from employees of the Government Tax Credit Office was stolen in 2005 and their details used to falsely claim benefits. Criminals raking through your rubbish to find personal information.

How will you know when your identity has been stolen?

Often people first find out about it when they are refused credit because their credit rating has dropped. You’re not receiving any post at all, or key documents or letters you have been expecting do not arrive. You receive bills or invoices for goods that you didn’t purchase. There are some transactions on your bank account that you don’t recognise. You have received solicitors letters or letters from debt collectors that have nothing to do with you. You apply for benefits and are told that you are already claiming. You receive correspondence from a government agency demanding repayment of benefits when you have never claimed anything in the first place.

Who loses out?

You – your credit rating could be damaged and you might find it difficult to obtain credit in the future. You will also have to prove to the organisations demanding payment from you that you are not responsible for them. The government – the public purse suffers from billions of pounds worth of fraudulent tax and benefit claims every year. Financial organisations – the companies with whom your details have been falsely used to obtain money may never be able to recover what was stolen in your name.

How to protect yourself against identity fraud

Don’t throw anything containing your name and address and/or other personal details into the bin without shredding it first. This includes bills, bank statements, benefits statements, receipts and even unwanted post and junk mail. Always let your bank and other organisations of which you are a customer know when you move house. Don’t use your mother’s maiden name as a security password Check your credit rating with each of the three UK credit agencies at least once a year. (These are Experian, Equifax and Call Credit.) Don’t use the same password for all accounts. If you’re worried that someone else could easily intercept your post, arrange to collect important items rather than have them posted to you, e.g. credit cards or cheque books from your bank. Cancel stolen credit cards immediately. Contact the DVLA or the Passport Agency immediately if your driving licence or passport have been stolen. Don’t give out your credit card numbers or other personal information over the phone if people nearby could overhear. Check your bank and other financial statements regularly to check for suspicious transactions. If you receive a phone call or email from what seems to be a legitimate organisation requesting personal details, check it’s genuine before proceeding. The best approach is to take their phone number and call them back. Banks will never ask you for your PIN or login details for their banking system. Ensure your computer is safe for making online transactions – get anti-virus software and a good firewall for protection, and only ever enter personal details onto secure sites (with the prefix https in the address).

What to do if your identity has been stolen

Contact the organisations with whom the fraud has been committed to explain what has happened. Inform the police. Get in touch with the Royal Mail if you suspect your mail has been intercepted. Contact CIFAS, the UK’s fraud protection agency, and register with their protection service to help prevent future fraud. Get credit reports from the three credit checking agencies to identify exactly what has been done in your name.

Author: Benedict Rohan Website: http://www.mortgagenation.co.uk Benedict Rohan works as a freelance finance writer. Commercial Mortgage, Homeowner Loans, Remortgages.

British Airways takes steps to secure credit card transactions

2006-12-05T08:58:00.000-08:00

By Emma Pritchard

British Airways (BA) has implemented Chip and Pin on board all flights, making it the first UK airline to achieve "end-to-end" Chip and Pin accreditation.

From now on customers on board British Airways flights can purchase goods using the Chip and Pin system, which was first introduced throughout the country last year to allow customers to make payments without passing their credit card over to anyone else.

BA's move has made it the first UK airline to meet the stringent requirements laid out by EMV (Europe, MasterCard and Visa), PCI (Payment Card Industry), APACS (Association for Payment Clearing Services) and acquiring banks, ensuring that every step in the payment process is secure.

The new devices being used by BA, Clue Trader's SkyPort Plus, are designed specifically to fulfil on board requirements. They have an extended battery life, an integrated printer, a barcode scanner and a wireless handset to allow access to all passengers, even those sitting in window seats.

The SkyPort Plus can also store information from the Credit Card Hotlist, allowing all transactions to be checked against fraudulent credit cards in under a second. According to Richard Cushing, retail business manager at BA, this, together with the Chip and Pin system, has already helped "to reduce the level of fraud substantially".

Credit card with 23.5pc interest

2006-12-05T08:56:00.000-08:00

LAUREN NOVAK

PEOPLE are being warned to avoid signing up for credit cards with high interest rates to pay for their Christmas purchases.

Consumer group Choice says it is "standard practice" for credit card companies to "aggressively market" at this time of year.

One company, GE Money, has recently mailed out an offer for a card which charges between 21 per cent and 23.5 per cent interest per year.

The GE Money MasterCard offers 55 days' interest free credit, limits from $500 and access to cash.

GE Money spokesman Keith Ritchie said the card was targeted at people who had trouble gaining credit approval from banks, and he said the higher interest rate was charged because the company was taking on "more risk" with such customers. Mr Ritchie said credit card companies generally charged between 18 and 20 per cent interest and the GE MasterCard was not much higher.

Choice senior policy officer financial services, Nick Coates, said he had not come across a card with an interest rate higher than 20 per cent.

"That is a very high rate," Mr Coates said.

"We would hope to see that being clearly outlined in the advertising material.

"We don't want to see these things in fine print at the bottom of the page." Mr Coates said that credit card companies took advantage of increased shopping activity over Christmas.

"It is very concerning because we see an increase (in debt) afterwards in the hangover period," he said.

SIB hops on to co-branded card wagon with Citi

2006-12-05T08:52:00.000-08:00

Thrissur-based South Indian Bank (SIB) has announced the launch of SIB Citibank Visa Credit Card, a co-branded international credit card in partnership with Citibank.

In addition, SIB has plans to move up north and extend its base by opening new branches there.

The co-branded credit card launched in association with Visa International will be offered to SIB customers in Kerala. “We are very glad to join hands with Citibank to launch the card.

This step helps us complete the bouquet of services that we provide to our customers,” said Valsan, chief general manager, SIB.

While SIB will handle customer access, marketing and distribution, Citibank will take care of scrutiny and processing of applications.

“The customer’s financial needs have evolved beyond what a bank can provide. Considering this trend, it is a win-win situation for both SIB and Citibank,” said T R Ramachandran, business manager - cards, Citibank India.

Valsan also elaborated on the bank’s expansion plans which includes the opening of the bank’s branches in Dehradun, Jammu, Lucknow, Rajkot and Thane, among others, within a fortnight.

Of its 456 branches, around 400 are networked and plans are on to network the rest by February 2007.

The branch network will cover 23 states and the total business is expected to touch approximately Rs 20,000 crore by March 2007. SIB’s total business stood at above Rs 18,224 crore at the end of September 2006.

For the first half of fiscal 2007, net profit stood at Rs 56.72 crore, exceeding profits for the entire fiscal 2006, which were Rs 50.90 crore. The bank’s advances have increased by Rs.1,279 crore from Rs 6087 crore to Rs 7,366 crore in H1 of 2007.

Three Credit Card Cons To Avoid

2006-12-05T08:49:00.000-08:00

By Cliff D'Arcy

I've recently acquired a new credit card, so I've been pestered with unwanted sales calls.

The issuer of my new credit card has called several times to offer me various add-ons and other bells and whistles. Of course, the aim of these sales calls is obvious: to boost its profits by flogging me over-priced and over-hyped products. Being a super-sceptic, I turned down every offer flat, because I know what poor value these additional products provide to customers.

For the record, here are two products which I kicked into touch, plus one other annoying charge which catches out millions of cardholders, the three Cs:

1) Credit card repayment protection (CCRP)

CCRP is a form of payment protection insurance (PPI), which is perhaps the most expensive financial product ever developed. If you are unable to work because of an accident, sickness or unemployment, PPI pays your monthly repayments on a credit card, mortgage or personal loan until you return to work, usually for a maximum of twelve months.

My new card issuer's CCRP costs 72p per £100 of my monthly balance (the equivalent of 0.72% of my balance) and pays a monthly benefit of 3% of my balance. So, on a balance of £1,000, this cover costs £7.20 a month and would pay out £30 a month. In other words, the premium charged comes to almost a quarter (24%) of the payout. Thus, if I'm not off work for more than three months of every year, this policy is worthless.

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2) Card protection plans

My card company then tried to sell me a card protection plan which provides support and assistance if my plastic cards are lost, stolen or used fraudulently. Apparently, this valuable peace of mind was on offer at a bargain price of just £29 a year.

As it happens, one of my friends is an expert in this field, having worked in marketing for one of the leading suppliers of these plans. He told me that they were even more lucrative than CCRP, which is an amazing boast! Again, I declined this service, explaining that the law only holds me liable only for the first £50 of fraudulent transactions made before notifying my card issuer, which will probably waive this liability in any event.

3) Currency-conversion charges

Later, I found that my new card's charge for foreign-currency transactions is 2.75%. In other words, for every £500 that I spend abroad or on foreign websites, this card levies an additional fee of £13.75. Hence, I won't be using it for overseas spending! For the record, the only credit cards which don't charge this sneaky fee are those issued by Nationwide BS and the Post Office. I'd steer clear of any other credit cards when shopping in currencies other than sterling.

Santa to bring credit card debt for 14% of families

2006-12-04T19:21:00.000-08:00

More parents and grandparents regard Christmas as cynical excuse to encourage shopping than a key Christian festival, says F&C Asset Management.

New survey research undertaken for F&C Investments by 72 Point Limited has revealed that 17 per cent of parents and grandparents expect to have to fund their Christmas spending either through clocking up borrowings on credit cards that will take more than a month to pay off or by taking out a loan.

The survey of 2,194 respondents also revealed that while 56 per cent of parents and grandparents are concerned about the financial future of their offspring and a further 21 per cent haven't even thought about it, some 62 per cent of them had yet to make any provision despite the soaring costs of a higher education. Although some 45 per cent of the parents and guardians surveyed claim they cannot afford to save for their children, almost 40 per cent of respondents say they will be spending more than £100 per child on gifts this Christmas and 70 per cent will be shelling out more than £50 per child.

"While 37 per cent of respondents regard Christmas as 'all about giving to others' and a further 31 per cent look forward to it as a 'time to get presents, eat and drink too much', for a significant proportion of families the festive season represents financial hardship," said Jason Hollands, Director, Head of Communications at F&C Investments.

"As a consequence, there is an undercurrent of cynicism towards Christmas with 16.5 per cent of those surveyed dismissing it as little more than 'an excuse by companies to get us to buy things', a response which tellingly outstrips the mere 14.7 per cent who recognise Christmas as 'an important Christian festival."

"Of course it is understandable that families will want to make Christmas a special time for their kids and the pressures to buy them the latest 'must-have' toys are significant. However, there is also case for spending a little less on gifts which may have a limited shelf-life and instead to direct some of these monies into savings schemes that will help their kids have a better start to their adult lives," said Hollands.

"Surprisingly, given the mounting costs of college and getting a foot on the property ladder," added Hollands, "even among those who have started saving for their offspring only a minority of 43% wish they had started to do so earlier."

According to the research, cash accounts remain the most likely choice among those surveyed as a potential home for any children's savings with some 64 per cent stating that they were likely to choose a bank or building society account as a place to invest for their children.

Even within the Government's flagship saving scheme – the Child Trust Fund – 74 per cent of respondents believed that it would be better to invest in a cash account as 'the safest option' compared to 26 per cent who agreed with the statement that 'it is best to invest the Child Trust Fund in a stock market fund as this will generate the best returns'.

"The survey shows that there is a huge amount of work to be done to both increase awareness of the need to save more - and earlier - for children and also to better educate families on the basics of investment. While cash accounts are undeniably low risk, stock market based choices such as investment trusts have the potential to generate much higher returns over long periods of time, especially in an 18-year scheme such as the Child Trust Fund."

"F&C believes that the Government should consider building on the foundations of the CTF by extending access to these accounts to all children under the age of 18, not just new born children, so that those parents or relatives willing to fund an investment for their offspring are able to do so in a tax efficient manner."

Card payments are on the growth path

2006-12-04T19:17:00.000-08:00

By Joel Rebello

The growth bug that is running across the Indian economy has also bitten the card industry. New employment opportunities, a young population and higher salaries have resulted in large disposable incomes, making India a perfect market for credit card companies.

Visa, which accounts for 70% of the total card industry, expects its total cards in circulation (both debit and credit) to double to 100 million by 2010 from around 45 million now. Purchase volumes in the country are likely to triple to $21 billion, said Santanu Mukherjee, country manager, Visa, South Asia.

“India is among the fastest growing card markets in the world, with a total 45 million cards under circulation (13 million credit and 32 million debit) and a 40% year-on-year growth. The retail sales volume is $7 billion annually (with a 60% year-on-year growth) through 650 million transactions,” Mukherjee said.

Though credit cards (launched in the late 1980s) came to India earlier than debit cards (launched in the late 1990s), the latter have raced ahead in terms of usage.

“Given the nature of the product (buy now, pay now products), debit cards have experienced exponential growth. Today, 68% of payment cards in India are debit cards as against 2% in 1998,” said a Visa-National Council of Applied Economic Research (NCAER) study on card usage in India.

A key reason for the debit card usage overtaking that of credit cards is the fact that banks are giving them free along with a normal savings account. But while this has substantially raised the number of card users in India, it has also made the debit cards bank-centric (viz used for banking services only) and not shopping-centric.

No wonder than that most debit cards in India are used to withdraw money from ATMs. The Indian customer is still reluctant to use his/her debit card to shop.

For example, Visa’s total card sales volume (September 2006) is $37 billion, but only $7 billion is spent to make direct purchases through cards.

The first challenge is to convert people from being users of cash to users of debit cards. Card purchase volumes are only $7 billion, while cash volumes are $23 billion. The next stage is to convert debit card users into credit card users,” Mukherjee said.

Enticing customers to use cards to shop is a crucial step for card companies hoping to tap this very attractive Indian market.

Consumer awareness through direct and indirect means such as entering into partnership deals with banks and offering schemes such as “100% cash back” helps increase card acceptance, Mukherjee said.

“The focus is to broaden acceptance and usage through merchant networks.”

The airline industry is all an area where card companies are finds an attractive opportunity.

Credit card fraud concern for Kiwis

2006-12-04T19:12:00.000-08:00

Credit card fraud is the biggest concern for New Zealanders when it comes to security according to the second Unisys Security Index Survey.

Spokesman Graham Alston says close to 60% of people surveyed are either very concerned or extremely concerned about the misuse of credit card details.

But he says in reality, the level of actual incidence is very low by world standards.

Alston says the finding is interesting for banks, who may need to determine whether the level of concern is actually changing people's behaviour.

Identity theft is the leading security concern for New Zealanders, behind credit card fraud.

Alston says 100% of 18 - 34-year-olds surveyed want added techniques to protect their identity.

He says there is a high level of acceptance of newer technology such as voice recognition and finger print and eye scans.

Alston says that indicates people are willing to give up a little bit more personal information to have an additional level of security.

Source: Newstalk ZB

Credit card fraud gang goes on trial

2006-12-04T09:56:00.000-08:00

By Xu Fang

FOUR alleged members of a massive gang went on trial yesterday on charges they defrauded an undisclosed number of Shanghai residents out of nearly 10 million yuan (US$1.25 million) using cell phone short messages.

Police say the 89-member gang was led by two Taiwan natives, who were only identified in court yesterday by the nicknames Rouzong and Doujiang.

Other members of the gang will be tried later.

Prosecutors told the Shanghai No. 1 Intermediate People's Court yesterday the gang sent potential victims a short message saying their credit card had been used to make a large purchase. Those who replied to the message were then convinced to move their money into another bank account to avoid further losses, but the new account actually belonged to the gang.

Xu Yangshan, 28, told the court Rouzong and Doujiang asked him to send short messages to local cell phone users from Xiamen, Fujian Province last October. "The message content and mobile phone numbers of the victims were all provided by Rouzong and Doujiang. I was only in charge of sending the messages with mobile phones they gave to me," Xu said, adding he was never paid the 1,500 yuan a month he was promised.

After receiving the message, many credit card owners would call a phone number included in the note to say they hadn't made a large purchase with their cards. "The bank offers the service to send me a message as a reminder if I make a purchase with the credit card. So I didn't suspect fraud when receiving the message. But I was anxious because I didn't spend the money. So I called the number offered in the message," a victim surnamed Liu told the court.

The man answering the phone told Liu that her personal information might have been stolen and somebody else had applied for a card in her name. He asked her to call the police, and provided the number for her. When she called that number, a fake policeman gave her a number for the bank's credit card center. The center then asked Liu to transfer the money in her account to another account, where it would be safe.

"The money drawn out of the accounts would be remitted to Taiwan through underground banks," said Shi Wenhua, one of the four defendants along with his girlfriend Jin Yun, 30.

U.S. Bank launches contactless credit card pilot in Denver

2006-12-04T09:52:00.000-08:00

U.S. Bank is launching a contactless payment project in the Denver, Colorado that will allow a select group of its customers to use their U.S. Bank Visa contactless credit cards at more than 600 merchants in the Denver area. Customers received their new cards last month and the bank is expected to open the pilot to more consumers in the near future.

DENVER--A group of U.S. Bank customers in the Denver area will soon be able to use a new "contactless" feature with their U.S. Bank Visa Credit Cards that allows them to quickly pay for purchases by holding their card in very close proximity to a secure reader at checkout instead of swiping it or handing it to a cashier.

The new contactless technology makes it easy for consumers to use their credit cards to quickly and securely pay for simple purchases - such as fast food, movie tickets, or convenience items - and carry less cash. More than 600 merchant locations in the Denver area are ready to accept payments with contactless cards. Consumers can identify whether a merchant has a contactless reader by the symbol on the machine.

Merchants like contactless cards because it expedites the transaction and allows their employees to focus more on customer service. Visa estimates that the average transaction is 25 percent faster than using cash.

"U.S. Bank, through its partnership with Visa, has long been at the forefront of innovation in the area of cards and payments. This latest innovation and introduction of contactless is a reflection of our consumer and merchant customers' desire to pay and go quickly and securely," said Patrick Coll, executive vice president of retail payments at U.S. Bank. "We anticipate enthusiastic acceptance in Denver and look forward to expanding the program."

Cards must be held within two inches of the reader to be accepted and data is protected with encryption technology that reduces the risk of fraud. Contactless cards will carry the same zero liability protection and will have the same behind-the-scenes fraud monitoring that is standard with Visa credit cards.

Customers in the pilot will receive their new contactless credit cards in November. Customers who receive the contactless card will also be able to continue swiping the card at merchants that don't have the contactless feature. U.S. Bank expects to make the feature available to more of its credit card customers in the near future.

U.S. Bancorp, with assets of $217 billion, is the 6th largest financial holding company in the United States. The company operates 2,467 banking offices and 4,943 ATMs, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. U.S. Bancorp is the parent company of U.S. Bank. Visit U.S. Bancorp on the web at www.usbank.com.

Christmas heralds rise in card fraud

2006-12-04T09:48:00.001-08:00

By Tim Blue

CREDIT cards are more than ever set to trumpet the title of "fantastic plastic" this Christmas on predictions of a sharp increase in usage and a parallel rise in card fraud.

Spending on cards will rise by close to 25 per cent over Christmas to top the $17 billion mark for the first time, according to research house Cannex.

The sheer scale of usage could generate headaches on repayments and increase the risk of theft or fraud, simply from greater exposure.

Members Equity Bank said yesterday it was encouraging members to be extra cautious when using cards.

MEB head of workplace business Tony Beck said: "Criminals are getting smarter and the incidence of fraud is increasing."

Cannex said the country's 13.1 million-plus credit cards will each swipe about $1280.

Encouraging the use of plastic are discount deals to win debt transfers from competing cards.

In the past six months, Cannex has found eight more cards offering to transfer balances at zero interest on existing debt, making a total of 15 to do so.

A "whopping" 73 more cards offer balance transfers at an interest rate on debt of less than 5 per cent, or better than half the usual rate. A total of 106 cards will offer such a rate.

Cannex reported that "lenders are lining up with their fishing nets ready to catch customers who have maxed-out over the festive season and are searching for an escape route".

To make spending easier, 21 cards were offering an interest rate of less than 10 per cent and 54 had rates under 13 per cent - eight of which did not charge an annual fee; a total of 28 cards were not charging an annual fee.

Cannex research analyst Garfield Wright said people spent up to 25 per cent more in December than they did for the other 11 months of the year.

"For the past three years, Australia's annual pattern of credit card usage has been predictable, with spending soaring in December as credit cards are well and truly given a workout," Mr Wright said.

January, however, was a different story as consumers came to terms with the credit card debt that needed to be paid off.

"There will be a completely different kind of New Year's resolution made this January."

The Australian Bankers Association reminded consumers yesterday that any debt on a card needed to be repaid.

But it said most borrowers did so, pointing to Reserve Bank of Australia figures for the past three Christmas periods that showed borrowers repaid 99.6 per cent of their debt over December and January.

Last Christmas was a good one, with RBA figures showing credit card holders made repayments that exceeded transactions by $638 million.

How your credit card balance can be calculated

2006-12-04T06:30:00.000-08:00

Although the price of a credit card is usually determined by its APR and fees, there are other things that you need to consider when looking for a card. One such thing is the way in which your credit card balance is calculated. Unless you pay your balance off in full each month, it is important to understand the way in which your bill is calculated. Getting the wrong type of card with a harsh calculation system can cost you a lot of money, so it really does pay to know how your balance is worked out.

Average daily balance

The most common way that your balance will be calculated is the average daily balance method. This type of calculation means that your balance is calculated daily, so any payments or refunds are credited to the account each morning. Also, it is possible that any new purchases might be added as well. At the end of each billing period, the daily balances are added up and divided by the number of days in the billing period. This leaves you with the average daily balance. This method is not the most advantageous for cardholders, but it is the most common and is by no means the worst method used. If you find a card with a great package that uses this method, then it would be a good choice.

Adjusted balance

Perhaps the best method for cardholders is the adjusted balance method. This means that payments or credits you make during the billing period are taken away from the balance at the end of the previous billing period. Any new purchases are not included, meaning that you have until the end of a billing cycle to pay for those purchases without paying any interest. This is particularly good if you can continually pay off any new purchases that you make each month. If possible, find a card that uses this type of balance calculation method.

Two-cycle

Although there are some good methods used like the adjusted balance method, there are also bad methods like the two-cycle balance method. This method calculates the average daily balance over two billing periods rather than one. This means that if you don’t pay the balance in full, your grace period can be wiped out for months. Also, the finance charges are likely to be higher because you will be paying interest on items for two months rather than one. For example, if you do not pay the balance off in full on the first billing then the interest will become retroactive back to the purchase date. If you are someone who doesn’t pay their balance off in full, then you should definitely try and avoid cards that use this balance calculation method as it could cost you a lot of money in extra interest payments.

Paying off the balance

Although the way your balance is calculated will be a factor for most people, if you make sure that you pay your balance off in full each month then you don’t have to worry. Paying your balance off in full means that the way your balance is calculated is less important, as you won’t be subject to the interest. However, if you are looking for a card you should try and find one that uses the adjusted balance or average daily balance methods.

High debt prompts credit card warning

2006-12-03T19:26:00.000-08:00

Tim Blue

KEEP an eye on your credit cards this Christmas, in more ways than one.

Spending on cards will rise by close to 25 per cent in the Christmas period to top the $17 billion mark for the first time, according to research house Cannex.

The sheer scale of useage could generate headaches on repayments and increase the risk of theft or fraud simply from greater exposure.

Cannex said the country's 13.1 million plus credit cards will swipe about $1,300 each.

Cannex research analyst Garfield Wright said people spend up to 25 per cent more in December than they do for the other 11 months of the year.

“For the past three years, Australia's annual pattern of credit card usage has been predictable, with spending soaring in December as credit cards are well and truly given a workout,” Mr Wright said.

January, however, is a different story with consumers come to terms with the credit card debt that needs to be paid off.

“What is certain is that there will be a completely different kind of new year's resolution made this January and if a reshuffle of the cards is needed, there are 15 credit cards on the market offering zero interest on balance transfers and 106 offering under five per cent,” Mr Wright said.

MembersEquity Bank said it was encouraging members to be extra cautious when using cards.

Tony Beck, head of workplace business at Members Equity, said: "Credit cards are great for convenience, but criminals are getting smarter and the incidence of fraud is increasing.

“Consumers need to protect the security of their card and PIN to ensure they have ultimate control over their accounts."

In short:

- Memorise your PIN

- Never leave cards exposed to unauthorised accees

- Always watch a sales assistant swipe the card

- Get a receipt if the swipe fails and the purchase is cancelled

- Look out for unusual reader devices

- Keep all receipts.

Christmas credit card splurge hits $17bn

2006-12-03T19:25:00.000-08:00

AUSTRALIANS will give their credit cards a going over this Christmas, toting up more than $17 billion in the shops, according to research out today.

Research group Cannex said the country's 13.1 million plus credit cards would swipe about $1300 each.

Cannex research analyst Garfield Wright said people spent up to 25 per cent more in December than they did for the other 11 months of the year.

"For the past three years, Australia's annual pattern of credit card usage has been predictable, with spending soaring in December as credit cards are well and truly given a workout," Mr Wright said.

"This year, though, the figure will be through the chimney and well into the $17 billion realm."

January, however, was a different story with consumers coming to terms with the credit card debt that needed to be paid off.

"What is certain is that there will be a completely different kind of new year's resolution made this January and if a reshuffle of the cards is needed, there are 15 credit cards on the market offering zero interest on balance transfers and 106 offering under five per cent," Mr Wright said.

Airlines add credit-card incentives

2006-12-03T05:22:00.000-08:00

Washington Post

Heated competition among airlines that have affiliated with credit card companies means consumers can get some great deals right now.

• US Airways' credit card, free for the first year, comes with 15,000 bonus miles after the first purchase plus 10,000 additional miles if you transfer a balance from another credit card, plus coupons for two $99 companion fares when a full-fare ticket is purchased, and access to the quickie lines normally reserved for elite and first- or business-class fliers.

• American is waiving the fee for the first year and offering 20,000 bonus miles, a $50-off certificate and a certificate for a free domestic companion ticket when you buy a full-fare ticket for $299 or more.

• United is waiving the first year's fee and offering 21,000 bonus miles after you spend $250, plus an upgrade to business or first class for flights up to 1,000 miles.

• Continental is offering good benefits on several cards, including 15,000 bonus miles and 5 percent off flights, but is not waiving its fee.

• Northwest is offering 15,000 bonus miles and the chance to get frequent-flier tickets for 21,000 miles instead of the usual 25,000.

A caution: Interest rates on the credit cards are high if you run up big bills you can't pay off monthly. For details and expiration dates on these offers, check each airline's Web site.

$9 fee just for paying credit card bill online

2006-12-03T05:19:00.000-08:00

By David Lazarus

Look beneath the hood of your typical credit card and you'll find unexpected fees -- and, sometimes, more.

Our story today begins with Foster City resident Harvey Silverman, who wanted his teenage son to develop good financial habits. So he shopped around before settling on plastic that he hoped would serve as the foundation of a sterling credit record.

Silverman picked a Visa card from 1st Financial Bank USA, a South Dakota company that specializes in issuing plastic to college students. Silverman liked that 1st Financial's card came with no annual fee and provided only a modest credit limit of $250.

Then a problem arose. Silverman's son, Ross, was injured playing rugby in Santa Barbara, where he's attending school. What Ross thought was only a minor scrape turned into a serious infection, and he remained hospitalized for about a week.

"His roommate was supposed to pay his credit card bill for him, but he forgot," Silverman told me. "We discovered this on a Sunday morning, so we figured we could just go online and make the payment."

And they could -- for a price. Turns out 1st Financial charges a $9 fee for any payment made online or by phone, including use of the bank's automated phone system.

And that fee jumps to $12 next month for payments by phone involving a service rep.

"This is absurd," Silverman said. "Students spend most of their time online. This just takes advantage of them."

In any case, he and his son agreed that a $9 online fee would be better than a $37 late fee, so they made the payment over the Internet. The bank's site said the payment would go through on the next business day, which would just hit the deadline.

Ah, but not so fast. The $9 online fee showed up on the next bill, but so did a $37 late fee. Silverman said a bank rep explained that "the next business day" in fact means "the next business day after a business day."

In other words, his son's Sunday payment didn't go through until Tuesday, a day late. (To its credit, the bank subsequently waived the late fee.)

I didn't know much about 1st Financial, except that it was founded in 1910 and is said to be the eighth-oldest national bank in the country. I went to the bank's Web site (1fbusa.com) but, weirdly, couldn't get in.

Turns out 1st Financial won't issue plastic to just anyone. You have to be invited to apply for their Visa cards and MasterCards, and if you don't have a special nine-digit "invitation code number," you can't even access the bank's lending terms.

This is the first time I've ever encountered a credit card issuer that turns potential customers away at the door.

When I called the bank to see if there was a technical problem with the site, a service rep explained that the invitation-only system is "how we do it" and said that invitations are mailed out to thousands of college students nationwide.

She said the names and addresses of students are obtained from "companies that get them from the colleges."

Well, that raises all sort of questions -- not least, what are colleges doing selling their students' contact info to marketers?

But there's more. Dig a little deeper and you discover that 1st Financial also runs a Web site called CollegeData, which provides high school seniors with extensive information about how to apply for a suitable college.

To register for the free service, you're instructed to provide your name, address, phone number, birth date and, yes, Social Security number -- pretty much everything that a financial institution might want to know in seeking credit card customers.

After leaving voice messages with several 1st Financial execs and sending an e-mail to CollegeData (the only way the service can be contacted), I finally reached Wayne Nesje, 1st Financial's vice president of customer service.

He declined to discuss any of my concerns over the phone but agreed to respond by e-mail to any questions I cared to submit.

As for why the bank charges a fee for electronic bill payments from its young, computer-savvy customers, Nesje replied that "online payments are not the preferred means of bill payment by our customers."

He said 1st Financial's Web site operates on an invitation-only basis because "the bank wants to encourage applications from those consumers whose identities and qualifications can be verified and evaluated."

"By issuing special invitation numbers in the mail, the bank also has an opportunity to provide clear and full disclosures about rates and fees, in writing, that the customers can keep for their files," Nesje said.

He confirmed that contact info for potential customers is obtained from "independent companies that specialize in collecting the required information" but declined to specify how many invitations are mailed out annually or how many credit card accounts 1st Financial has.

Similarly, Nesje declined to say how many young people have registered for CollegeData. He said only that 1st Financial "considers CollegeData a service to future college students that also builds the bank's name recognition with that group."

Less than 1 percent of 1st Financial's credit card customers come from CollegeData, Nesje said.

He also noted that the space on CollegeData's online registration form for people's Social Security number doesn't have an asterisk next to it, and thus this information is provided "solely at the option of the user."

Linda Sherry, a spokeswoman for San Francisco's Consumer Action, said she is wary of Nesje's responses, not least concerning the connection between 1st Financial and CollegeData.

"These are two businesses you wouldn't necessarily want to be linked," she said. "One collects data from young people. The other issues credit cards to young people.

"This appears to be a rich cross-marketing opportunity for the bank," Sherry added. "It's kind of like the fox guarding the hen house as far as all this data on young people goes."

And that's something all college-age hatchlings should keep in mind.

David Lazarus' column appears Wednesdays, Fridays and Sundays. Send tips or feedback to dlazarus@sfchronicle.com.

Deputies searching for credit card criminal

2006-12-01T09:23:00.000-08:00

A bank customer foiled a plan by a crook to steal peoples account information when police say he found a device called a skimmer attached to an ATM.

It happened Wednesday night at the Wachovia Bank branch in North Naples at the corner of US 41 and Immokalee Road.

The ATM security camera shows a man in a floppy hat attaching the skimmer at 6:10 p.m. At around 9:30 p.m. a customer noticed that something looked strange on the ATM. He pulled off the skimmer, which was only attached with tape.

A skimmer is a device that fits over the card reading slot on ATMs and gas pumps. When you slide in your card it captures your account and pin numbers. The criminals then have access to your money.

Detectives say four or five customers used the machine before the skimmer was removed, but their information is safe because it never got in to the hands of crooks.

Authorities say skimming is more common than you might think. In fact they investigate 400 to 500 skimming complaint a year in Collier County alone.

Tonight on our 6:00 news we will have advice on how to protect yourself from this growing crime.

Source - http://www.nbc-2.com/

Credit Card Fees. The credit card companies strike back

2006-12-01T09:19:00.000-08:00

Spending on plastic has never been more popular as more and more rely on cards instead of cash. Indeed experts believe carrying cash could soon become a thing of the past. High Street spending on debit cards outstripped cash for the first time in 2005 according to Precious Plastic 2007, the latest study of the UK consumer credit market from accountants PricewaterhouseCoopers.

Our reliance on cards comes at a price though. The PwC research also revealed that credit card firms are feeling the pinch and their profits continued to this year as the industry came under unprecedented scrutiny from watchdogs such as the Office of Fair Trading, the Competition Commission and the Financial Services Authority.

Growth in credit card debt eases

2006-12-01T07:04:00.000-08:00

By Brian O’Mahony

THE pace of growth in credit card debt slowed in the year to end October from 18% per annum to 16.9% as private sector credit growth eased to its lowest level since July 2005.

Central Bank credit figures said the adjusted annual growth rate fell to 27.7% in October, down from 28.1% in September. Credit growth hit a six-year peak of 30.3% in June.

Despite indications of a slow down, consumers and business are still borrowing heavily.

Overall, the private sector incurred a total debt of €6.3 billion in October, pushing the total out to €309bn, still preserving our status and the most heavily borrowed country in Europe after the Dutch.

By the end of the period, total mortgage debt had hit €119bn, with mortgages responsible for up to 80% of all consumer debt in this economy.

While indications suggest the speed at which we are going into debt is easing somewhat, October still delivered the second-largest monthly increase in borrowing in the year to date of 27.7%.

Today’s figures show that for the fifth month in a row, the growth rate of non-mortgage credit exceeded the growth rate of private sector credit and residential mortgages. The adjusted annual growth rate of non-mortgage credit was 31.5% in October, down from 32% in September.

The adjusted annual growth rate of non-mortgage credit was 31.5% in October, down from 32% the previous month.

The Central Bank said that lending to non-financial corporations accounted for three quarters of the monthly change in non-mortgage credit.

Commenting on the figures Bloxham Stockbrokers chief economist Alan McQuaid said the rate of Irish sector credit growth was still running at two-and-a-half times the eurozone average.

He warned that if the euro continues to appreciate, the ECB could halt the present cycle of interest rate hikes, which could see borrowing surging ahead again in 2007, he said.

At this stage the level of borrowing by Irish households for house purchase remained steady in October, with the month-on-month change of €2bn in residential mortgages slightly above the September change, he said.

While that pushed total residential mortgage debt to just under €120bn “the annual growth rate [adjusted for securitisations and reclassifications] continued to ease slightly, to 26.5% in October, from 26.9% in September”.

Credit Card Thefts on the Upswing

2006-11-30T08:10:00.000-08:00

Police are advising people to watch your wallet this holiday season. They are reporting a significant increase in credit card theft. Thieves tend to go after distracted customers, but experts say there are some things you can do to protect yourself.

Don't take your credit card out until it's time to pay. -Be aware camera phones can capture your information. But most importantly, watch your belongings at all times. >>CHIEF TED KOHUTH: 547 "When we think of all the distractions out there, the shopping lists and getting the best deal and running from here to there but all the same we need to stay focused and reduce our vulnerability." >> If your credit cards are stolen contact the police and your financial institution immediately.

An Ill Wind for Credit Card Companies

2006-11-30T08:06:00.000-08:00

By Elizabeth Warren

Is the wind blowing from a different direction on credit card issues? Today the Center for American Progress is hosting a program called “Who’s in Charge?” CAP doesn’t spend much time on lost causes; this is their second major event on consumer debt in less than six months.

The CAP event showcases strong, new voices in the consumer credit fights. CAP is also using the event to unveil an innovative idea to make credit safer for consumers using rating systems modeled on car safety systems. The people are terrific and the policy proposal is interesting, but what interests me most is whether middle class economic issues are beginning to take hold on the political agenda. Today a powerful senator, backed up by a professor and a GAO official presenting two pieces of solid research on credit cards, will be turning up the heat under the credit card issuers. A single conference won't spell the end of credit card influence, but it may signal that the climate for the card issues will not be so favorable in the future.

Over the past twenty-five years, the credit card industry has grown like the blob, sucking up money from working families across the country. New tricks, traps and tickles have left millions of families mired in debts they may never pay off. Even as the industry "innovates" with cross-default clauses, double-cycle billing, multiple low-balance cards, and a dozen other practices designed to deceive, there hasn't been a whiff of new regulation. But some new players are taking the field.

Carl Levin, D-MI, the senator who will be kicking off the CAP event, has a perfect background for wrestling with the credit card companies. He jumped into the Enron mess and led efforts to control money laundering, showing that he isn’t buffaloed by complex financial issues. He’s launched investigations on gas price manipulation, suggesting an interest in consumer issues. He also led the effort to ban Senators’ acceptance of gifts and honoraria, which may have given him a little practice in dealing with his colleagues who take money from the groups under investigation. Now he’s sinking his teeth into consumer credit issues.

The CAP program will be long on solid research. Ronald Mann, Professor of Law at the University of Texas, will be talking about his new book, Charging Ahead! Mann pulls together comparative data on credit card and other payment use around the globe, pushing on the US policies that have caused Americans to sink much deeper into debt than their counterparts in Europe, Japan and Australia.

Adding to the hard data at the event will be David G. Wood, Director, Financial Markets and Community Investment of the GAO. Mr. Wood is responsible for a powerful GAO report that shows that most consumers don’t understand the terms of the credit cards. The book lays a solid foundation for better regulation of credit card disclosures.

CAP also adds its own proposal to the mix, initiating a discussion about whether evaluations of credit card safety would have the same benefits that evaluation of car safety produced.

Visa named 'World's Leading Credit Card'

2006-11-29T19:31:00.000-08:00

For the ninth consecutive year, the World Travel Awards has named Visa International the "World's Leading Credit Card."

Over two million votes were cast during a five-month independent survey period and the fact that no-one has been able to knock Visa International off the top spot for nearly a decade, is testament that it has a credit card offering that is unbeatable, said an official spokesman.

This achievement is attributed to Visa International's continued focus, its commitment to excellence, the value-added services it provides for travellers, and its innovative online travel portal.

"Visa International is delighted to receive this award on behalf of our member banks. The firm continues to grow with the travel industry. It achieves its success by providing merchants with access to millions of Visa cardholders as well as by providing cardholders with unsurpassed acceptance worldwide along with travel and entertainment programmes linked to Visa payment cards," said executive vice-president for global marketing partnerships and sponsorships at Visa International Top Shepard.

The online voting took place throughout the year 2006 at www.worldtravelawards.com. This website enabled travel agents and professionals in over 200 countries worldwide to let the world know who they thought was the best in the travel industry.TradeArabia News Service - Amman

3 sought in credit-card thefts

2006-11-29T07:18:00.001-08:00

Seminole County sheriff's investigators are looking for three women they think stole credit cards from purses in a Sanford area real-estate office while an employee was showing some of the women a model home.

The thefts occurred this month at KB Homes on Habitat Way. They were not discovered until the next day when the victims were contacted by their credit-card companies about the number of charges being made on their cards. The cards used were at stores throughout Seminole County.

Warrants have been issued for the arrest of Winshenia Renee Lamarr and Denise Blanche Fuller, both 24 and from the Sanford area, Seminole County sheriff's spokeswoman Carrie Hoeppner said. Investigators still are trying to identify the third suspect.

A similar theft occurred at a company office in Lakeland about two weeks later, and a worker at a Poinciana office ordered some women to leave after she became suspicious, said KB Homes spokeswoman Cara Kane. In both instances, the women matched the description of those involved in the Sanford theft, she said.

Denise-Marie Balona, Rene Stutzman, Rich McKay and Gary Taylor of the Sentinel staff contributed to this report.

Police: Woman used stolen credit card

2006-11-29T07:17:00.000-08:00

A Utica resident was arrested last week after she allegedly used a stolen credit card, town police said Tuesday.

Stacey L. Miller, 22, of Seward Avenue in Utica, was charged with 11 counts of second-degree forgery, one count of fourth-degree criminal possession of stolen property and one count of petit larceny, police said.

Police said an investigation showed Miller used the stolen credit card at the Utica and New Hartford Wal-Marts between Sept. 16 and Sept. 18.

Police said Miller also used the card at area restaurants.

Police said they started an investigation after the owner of the card found charges on his bill statement that he did not recognize.

Miller was released on an appearance ticket, police said, and she will return to New Hartford Town Court at a later date, police said.

Credit-card top rate raised

2006-11-28T18:58:00.000-08:00

Maximum interest rates for new credit card users will increase to 20% per year from 18% starting next month, the Bank of Thailand announced yesterday. Existing cardholders with outstanding balances will be given a seven-month adjustment period, with the new rate taking effect on June 30. New outstanding debt, however, can be charged at the new rate starting next month.

Krirk Vanikkul, an assistant central bank governor for financial institutions policy, said the seven-month adjustment period was to ease the burden cardholders would face, particularly those who took out cards before April 2004.

Cardholders before 2004 were granted until April 2007 before facing an increase in minimum monthly payments to 10% from 5% now. Cardholders after 2004 already face the higher rule.Mr Krirk said that to minimise the impact on older cardholders from higher minimum payments, as well as higher interest rates, the central bank decided to give borrowers additional time to clear existing debts before the new rate takes effect.

''We expect old debt to decrease significantly after six months, particularly once the 10% minimum monthly payment rule takes effect,'' he said.

Mr Krirk noted that some banks may not raise rates for new spending despite the higher rate ceiling. ''If the banks can bear with the higher costs, they might not raise rates. We will leave this to market competition.''

Other banks could face technical challenges in calculating multiple rates for new outstanding credit versus debt outstanding before Dec 1, and thus decide to delay a rate hike until next June.

The adjustment followed a petition from card issuers earlier this year seeking permission to raise rates to reflect higher interest expenses in the market.

Mr Krirk defended the central bank's move even as interest rates have stabilised and are expected to fall in 2007.

''Issuers requested that the maximum rate be raised at a time when the 14-day repurchase rate stood at 4.5%. The rate now has increased to 5%, compared with just 2% in 2002,'' he said.

The 18% maximum ceiling was first imposed in 2003.

''Thailand ranks among the countries with the lowest interest rates for credit cards,'' he said. ''Japan, for instance, has a ceiling of 29%, and most range between 20% and 36% per year.''

The new rate rules were published in the Royal Gazette last Friday.

The central bank also eased rules on card applications, with issuers allowed to evaluate the financial position of companies rather than individuals for corporate cards. Applicants with investments in debt instruments issued by banks, government agencies and state enterprises can also be considered in setting credit lines.

Mr Krirk said the central bank was not considering changing the rate ceiling for unsecured personal loans, now set at 28%.

Overall asset quality for credit card receivables also remains strong, with non-performing loans at just 3% of total loans. Outstanding credit card loans stand at 20% of total transaction volume, a ratio unchanged from 2004 and half that reported in 2002.

Growth of non-bank consumer finance issuers has slowed in recent quarters. But banks had seen growth increase to about 10% compared with 7% last year.

Kattaya Indaravijaya, a first senior vice-president at Kasikornbank, said the new rules would help ease margin pressure on the bank, which currently had funding costs of 5%.

She said Kbank planned to increase minimum monthly payment requirements gradually from 5% now to 6% in January to 10% in April.

''The new rules will affect only certain cardholders. Some could face a double burden of higher monthly payments and higher interest rates,'' Mrs Kattaya said.

Thawatchai Thitisakdiskul, a senior executive vice-president at Krungthai Card, said funding costs at the country's largest card issuer had increased to 6% now from 2% several years ago.

''But only 40% to 50% of card users run credit balances from month to month, so the measures won't affect everyone,'' he added.

By PARISTA YUTHAMANOP & DARANA CHUDASRI

Credit cards can lead to a lot of debt

2006-11-27T23:32:00.000-08:00

Spencer Jones has had a credit card since he was 18 years old.

But he hardly ever uses it.

“I’m afraid to because I don’t want to run the balance up,” said Jones, a Kentwood sophomore.

Not enough people utilize Jones’ philosophy, said Charles Walmsley, financial planner and finance and law professor.

College students often run into problems with credit card debt because they use them for everyday expenses, Walmsley said.

“The biggest mistake college students make when it comes to credit cards is living beyond their means,” he said. “They tend to spend more money than they have.”

The average college freshman carries $1,500 worth of credit card debt, according to a 2005 study by student loan company Nellie Mae, and 56 percent of undergraduates have obtained their first credit card by the age of 18.

“Credit cards are very easy to acquire for college students, making credit card debt prevalent for them,” Walmsley said. “Credit card companies will relax credit standards to take on more customers at a higher rate, like college students.”

For complete story http://www.cm-life.com/vnews/display.v/ART/2006/11/27/456a6439d2d3d

How to survive Christmas credit card spending

2006-11-27T05:58:00.000-08:00

By Ariane Buteux

Around this time of year, letterboxes are likely to become inundated with mail from major credit card companies offering spectacular introductionary deals or exciting freebie offers, with recent research suggesting that between October and December 2006 the average UK adult will charge £1,270 to their ‘flexible friend’.

Rather than getting seduced by fancy marketing ploys and trapping yourself in a web of debt, if you’re pretty sure you will be spending on credit this Christmas, make sure you don’t grab at the first card available and instead really investigate what’s about. Depending on the reasons for adding another bit of plastic to you wallet, spending that little extra can actually go a lot further than you might think.

Compare credit cards

Transfer your existing balance

If you already have a balance amount running into the hundreds on one or more cards, you could save yourself money by switching them all to one single one which offers a much more attractive interest rate.

Cards like Marks & Spencers’ &More card and Sainsbury’s Bank Platinum card offer very low interest rates (3.9 per cent and 5.94 per cent respectively) for the life of the balance as well as a fee free transfer over to them. The only thing to bear in mind with these type of cards is that the typical APR on any purchases you make on top of this is 15 or 16 per cent, roughly triple the special balance transfer rate.

Get the most from your credit card

If transferring money to a card with a ‘life-long’ low interest rate on the balance and a fairly low interest rate on the purchases you make, make sure you don’t get caught by excessive transfer fees. Lloyds TSB’s Advance card offers a very competitive 11.90 per cent APR on purchases and 5.5 per cent on balance transfers, but it will cost you 2.5 per cent of the amount you want to transfer over when you come to do so.

Interest free deals

If you are looking to buy your presents on credit before Christmas but intend to clear the balance once you get your wages at the end of the month, then it’s definitely worth making the most of an interest-free offer.

Cards from Sainsbury’s, M&S, Halifax, Mint, Nationwide, NatWest, and RBS all offer 0 per cent interest on purchases for between 9-12 months depending on the card, but bear in mind that the longer the initial 0 per cent period, the higher the standard fall back interest rate tends to be.

Find a best-buy credit card

The Bank of Scotland One and the Co-operative Bank Clear cards both offer a 59 day interest-free period which will take you right through December and well into January, and if you go over this then you will only accrue 9.90 per cent interest on your purchases.

Store cards

The same principles apply to store cards. They typically offer a 56 day interest-free period and an attractive introductionary discount on your purchases of around 10 or 15 per cent which can be really worthwhile, but almost all have a crippling APR in the region of 25 – 30 per cent so be wise and pay it off during the interest free period.

Some supermarkets and larger retailers also offer own brand credit cards which can be useful to make the most of their reward schemes – a good example of this being Sainsbury’s. The supermarket is known for it’s Nectar Reward Card but they also offer a range of Sainsbury’s credit cards, allowing customers to accrue points to then spend on their shopping.

Get the best from your bonus scheme

However a new type of credit card has been launched by American Express and provides Sainsbury’s customers with a new way to save Nectar points by spending money on their everyday shopping. It gives customers the opportunity to earn up to 4 loyalty points for every £1 spent at participating stores which can then be cashed in for luxury treats or money off shopping as part of their Nectar reward scheme.

Get a card with cashback

The final option for credit-happy big spenders this Christmas is a card with a cashback facility. These are a really good option if you are a stickler for paying your balance off in full each month, as you can dodge harsh interest rates while getting something back in return. Companies like Egg, Morgan Stanley and American Express all offer cards with very competitive rates, giving you a rebate of anything up to 3 per cent cashback on the purchases you make with it.

As the credit market is increasingly competitive towards the end of the year when us Brits struggle to cover the cost of Christmas, some cards combine the advantages outlined above so you don’t have to take out 4 different credit cards to address your different financial needs, but still get a fantastic deal to suit you.

One big thing to remember however is that, when committing to a card with free balance transfers, low interest deals or an interest-free period, make sure you are aware of the standard APR. This means that when the special interest-free periods finish or if you spend over a particular limit, you don’t end up feeling the sting in the tail if you have balance left on it.

Most importantly, resist using it to withdraw cash from an ATM as it will cost you an average of £2.50 every time you do so. This means just 4 trips to the cashpoint will cost you a tenner, with the apparent ease of getting ‘free money’ causing your well-planned finances to spiral out of control.

Surprises in your credit card bill

2006-11-27T05:54:00.000-08:00

By Carl Levin

WASHINGTON — When you get your credit card bill this month, take a good look at the fine print. Are there any charges or fees you don’t recognize? Is it difficult to find details on what you’re being charged for and why? If so, you are not alone. Credit card companies are making more and more of their money off of hidden and unfair fees, complex interest charges and poor disclosure practices that take advantage of working families.

Millions of Americans use their credit cards every day to purchase essentials like groceries and gas. In fact, Americans used nearly 700 million credit cards last year to purchase more than $1.8 trillion in goods and services, a 25-fold increase since 1980. Credit cards make it easier to purchase the things we need, but there are also traps that can be difficult to avoid.,/p>

Not surprisingly, this increased use of credit cards has put many families in debt. The Federal Reserve estimates that the average American household owed about $5,100 in credit card debt in 2004. I often hear from constituents that they are having a hard time figuring out their credit card bill and climbing out of that debt.

With that in mind, I asked the Government Accountability Office (GAO), the investigative arm of Congress, to look into the billing practices of credit card companies. The GAO report helped to shine a light on several abusive or confusing practices that are hurting Americans’ efforts to pay off debt and ought to be stopped as a matter of simple fairness.

First, the practice of so-called “double-cycle” billing is particularly galling. With double-cycle billing, practiced by a third of the credit card issuers studied by the GAO, consumers are charged interest on debt that has already been repaid. As an example, imagine a cardholder who begins a billing cycle with a zero balance, charges $500 on his or her credit card and makes an on-time payment of $450. Under double-cycle billing, he or she would be charged interest on the full $500, rather than on only the $50 that is still owed. This is a dishonest way to make a few bucks at the expense of a responsible and unwitting consumer.

Second, the GAO found that the account information provided to consumers is often inadequate or confusing. Current fee disclosures are difficult to understand and poorly organized, with much of the important information buried deep in the fine print, and it is often unclear when or under what circumstances late fees or penalty interest will be charged.

Third, some fees are plain unfair. For instance, some card issuers charge a fee of $5 to $15 to make an on-time payment by telephone without any mention of this fee in the account materials. This means that some families are being charged $15 to pay their bill over the phone before the due date. It is inexcusable to charge families a fee to pay their bill on time.

Finally, penalty interest rates and fees are higher now than they ever have been. In 2005, the average fee was $34 for a late payment and $31 for going over a credit limit. Both fees have more than doubled from $13 in 1995. In addition, interest rates for those who pay late or exceed their credit limit can reach over 30 percent. These are hefty penalties that can take a real bite out of the family budget and hinder a good faith effort to pay off debt.

It is outrageous for credit card companies to use hidden fees, penalty interest charges and unfair practices to exploit consumers. American families simply cannot afford to hire a lawyer to decipher their credit card statements, and they shouldn’t have to. If credit card companies do not take the initiative to clean up their act, I will introduce legislation to ban these abuses.

Story source Surprises in your credit card bill

Customer’s anger over credit card

2006-11-27T02:53:00.000-08:00

A TWYFORD man was left furious when supermarket staff destroyed his credit card after he left it in a store.

Steve Harris, 58, went shopping at Sainsbury's in Badger Farm late on Wednesday evening, but noticed his credit card was missing at lunchtime the next day, He called the store to find out whether it had been found.

But the journalist and importer of fine wines said he was angry to be told that his card had been destroyed for security reasons.

Sainsbury's store policy is to destroy any credit or debit cards found in store after 24 hours, but in Mr Harris' case, it was destroyed much earlier.

Mr Harris said: "I find this quite mindless, not least because I am now being put to a lot of inconvenience.

"We're very loyal customers of Sainsbury's, so it's a poor reward to our loyalty."

In a letter to the supermarket's head office, he complained of the "ill thought-out policy".

He said he would check to see if other supermarkets did the same, and if not, he would take his custom elsewhere.

Mr Harris spent the rest of the week without a credit card, although a replacement arrived a few days later.

A spokesman for Sainsbury's, said: "The company policy is we will keep any card we find for 24 hours and destroy it after that. In this case it seems it was destroyed before that.

"We're sorry he was upset, but it was as a precaution for him."

Twentysomethings battle debt

2006-11-26T23:34:00.000-08:00

Nearly two-thirds carry some debt

Thirty years ago, the "generation gap" reflected the cultural gulf between World War II-era parents and their children. Parents then just didn't get sex, drugs and rock 'n' roll.

Today, the gap is about debt.

This generation of twentysomethings is straining under the weight of college loans and other debt, a crushing load that separates it from every previous generation.

Nearly two-thirds carry some debt, and those with debt have taken on more in the past five years, according to an analysis of the credit records of 3 million twentysomethings that Experian, the credit-reporting agency, did for USA Today. Their late payments are rising, and they're more likely to be late than other Americans are.

Nearly half of twentysomethings have stopped paying a debt, forcing lenders to "charge off" the debt and sell it to a collection agency, or had cars repossessed or sought bankruptcy protection.

For complete story visit Twentysomethings battle debt

Credit Card Alarm: for slow consumers everywhere

2006-11-25T09:47:00.000-08:00

Are you an idiot? Sure, you might make excuses for your blatant lack of acumen, claiming that you're "absent minded" or "flakey," but we all know what that means. You're dumb. Stupid. Not the sharpest arrow in the quiver. But hey, don't despair; technology is here to pick up where Mother Nature so cruelly left off. Like that problem you have of always leaving your debit card in the ATM, even when you're just supposed to slide it in and out quickly. You might have gotten flustered trying to remember your four-digit PIN (here's a hint: it's your birthday), but the Credit Card Alarm is paying attention for you. Once your card is out of it for a few moments, it sounds the alarm to remind you that you really should be taking that connection to your bank account with you. Sure, the alarm is pretty simple and its $55 price tag is kind of ridiculous, but the price is less ridiculous than you leaving your credit card somewhere every couple of weeks, you big dummy. — Adam Frucci

Collegians and Credit Card Debt

2006-11-24T09:42:00.000-08:00

Those offers you get in college sound great, but you could end up paying for them for a long time.

If you have children nearing college age, how can you effectively warn them about the dangers of credit card debt? Let's review a few things you might want to mention.

Your kids already know college can be great. They won't have parents nagging them with curfews. They can eat ice cream for breakfast and popcorn for dinner if they want. And America's banks keep offering them credit cards!

Now, fast-forward your kids to their graduation. They've racked up $5,000 in debt on one of those credit cards. Of course, they aren't worried -- their minimum monthly payment is only 2% of the balance, or just $100 per month. But have them consider a few things: When they signed up for the card, it offered a low 6.9% interest rate. But did they notice that the rate swelled to 18% after six months? Sneaky devils, those card companies.

Now, even if they don't accumulate any more debt on that card, it can take more than 40 years to pay off the balance if they make only the minimum payment. Holy guacamole! All told, they will have paid nearly $18,000 just for the privilege of charging $5,000. No wonder the banks keep sending them unsolicited credit card applications.

Here's another danger. Let's say your kids are fired up to invest in stocks, but they still owe that $5,000 and are paying 18% annual interest on it. If a $5,000 stock investment nets them an 11% return, they're still losing money -- 11% in, 18% out. Investing doesn't work well if you're deep in debt at high interest rates.

Don't worry, though. We're not going to tell anyone to use credit cards only as shoehorns, eye patches, and after-dinner snacks. It's OK to have a credit card. Just make sure (and this goes for everyone) that you're charging only what you can afford to pay and that you pay the bills off in full each month. Choose your cards carefully. Use an electron microscope to read all of the fine print. Look for cards that offer a low interest rate, no annual fee, no unreasonable penalties, and a protected, interest-free grace period. Then, when the bill arrives, take five minutes and scrutinize your statement for any mysterious charges.

Finally, if you find it difficult to manage a revolving-debt card, consider getting the type of charge card that requires full payment each month -- like an old-fashioned American Express card.

The typical American household owes thousands of dollars on credit cards. Be above average, college-bound Fools. Graduate without credit card debt.

You can learn much more about the surprisingly interesting credit card industry by taking a peek at our Credit Center, which also features tips on getting out of debt, along with guidance on how to manage your credit effectively. Really. I mean it. There's some great stuff in our Credit Center, and it's all free reading.

By Motley Fool Staff

Credit card Cash costly at Christmas

2006-11-23T04:52:00.000-08:00

With the peak shopping season on our doorstep, it's not unusual for many Christmas shoppers to turn to their credit cards to get some extra cash for that perfect present. But getting cash this way could cause long term financial pain, warns MoneyExpert.com. The average annual percentage rate (APR) on cash withdrawals is 21.27 per cent, making this a costly way to boost the Christmas coffers.

Only 11 providers charge less than 15 per cent for cash withdrawals. Even for those who pay off the balance, the costs are still high, with the charge for withdrawals at an average of £2.60 or 2.46 per cent for larger sums. That means you pay £2.60 up front plus £21.82 in interest for the first year. Even for small sums the fee is the same, so a £20 withdrawal could still cost you 13 pence for the withdrawal.

So what's the best move for shop-happy consumers? Whatever they do, they shouldn't withdraw cash with their credit cards unless it's a real emergency. Instead, debit cards are best as most banks and building societies don't charge customers to withdraw their own cash.

Credit cards, on the other hand, are an expensive form of borrowing, with most providers charging a premium. In addition, because of the way debts are repaid on credit cards (the most expensive paid off first), you could be paying for that Christmas shopping cash for a long, long time.

APACS research suggests that Brits are using their credit cards to withdraw £750 million a month from cash machines. That added up to £9.2 billion last year, with another £1 billion withdrawn abroad. That could cost them dear once payback time comes around.

Instead, consumers should take MoneyExpert's advice that 'there's never a good time to withdraw cash with your plastic' unless it's a real emergency, in which case you may not worry about the cost.

MoneyExpert.com - Credit card users given tips to fight fraud

2006-11-23T04:50:00.000-08:00

Consumers who use debit or credit cards have been alerted to a number of tips from the British Bankers' Association (BBA) to help tackle financial fraud.

The BBA states that although users have a "low" chance of being victims of card fraud, many people are not taking sufficient care to ensure that their personal details are kept safe.

Some tips offered by the financial body include shielding your hand when typing in a pin number, never keeping passwords or pin numbers written down and making sure there is adequate security software installed on a computer if you plan to shop online.

"The banks have a duty to protect their customers…but people have to take responsibility for their own security too," said Angela Knight, chief executive designate of the BBA.

In related news, Apacs has found that overall levels of card fraud have fallen since the chip and pin system was implemented throughout the UK.

Mark Bowerman, spokesman for the UK payments association, said: "It's definitely had a positive impact.

"Our cards are definitely safer than they were pre-chip and pin."

BBA offers tips to beat card fraud

2006-11-23T04:40:00.000-08:00

The British Bankers' Association (BBA) has said that customers and banks need to "work together to fight financial fraud" and offered some guidance to consumers to help them avoid being a victim of crime.

Firstly, customers should make sure they do not let their cards or card details out of their sight when making a transaction.

All documents or receipts that contain personal information should be destroyed and details such as pin codes and login details should not be written down.

Customers should not reply to unsolicited emails that claim to be from a bank or the police and ask for bank details. Personal information should only be supplied over the phone if the cardholder has instigated the call.

It is important to ensure security when using a computer, which should have anti-virus software and a firewall installed. Details should only be entered on secure websites which display a padlock or unbroken key symbol at the foot of the page.

Angela Knight, chief executive designate of the BBA, said: "Everyone has a responsibility to fight financial fraud. The banks have a duty to protect their customers and to keep information safe. They are good at it but isolated incidents can crop up.

"These are fully investigated and procedures changed where necessary. But people have to take responsibility for their own security too."

The BBA stressed that, while there are some risks, cards are still safer than cash, as plastic can be frozen if it is lost or stolen. If a purse or wallet with cash in it goes missing, however, there is a high chance that the money inside will never be seen again.

Credit card parking meters included in 2007 budget

2006-10-23T23:04:00.000-07:00

Drivers could use credit cards in new parking meters that would replace more than one-third of Milwaukee's downtown meters next spring, a city official said Monday.

The Department of Public Works is preparing to review proposals to install at least 100 of the new devices, said Dorinda Floyd, public works finance chief.

Because each unit would handle payments for up to 15 parking spaces, they would replace 1,500 of the 4,000 meters downtown, Floyd said.

Plans for the new meters are included in Mayor Tom Barrett's 2007 budget. Floyd discussed the budget's parking provisions with the Common Council's Finance & Personnel Committee.

In 2004, an Australian company provided four of the devices for a three-month test along a one-block stretch of N. Jefferson St. Each meter took coins, credit cards and debit cards as payment for five to nine spaces.

Drivers would punch the number of their space into the meter's keypad, then insert coins or swipe their cards.

Flashing lights told parking checkers which spaces were out of time.

Parking revenue for the block rose 3% during the test, and public reaction was positive, officials said.

The devices also provide much more information about how people use parking meters, which eventually could be used to come up with different rates for different times of day, Floyd said.

Although the city has 6,300 parking meters, the devices accepting credit cards make more sense downtown where parking is $1 an hour than in neighborhood business districts where parking is as little as 25 cents an hour, because the minimum credit card charge is $1, she said.

Also Monday, Floyd said a $5 increase in parking ticket late fees would produce $600,000 a year.

Unpaid tickets now rise $5 after 10 days, another $5 after 28 days and another $15 after 58 days. Barrett's budget would change the increase after 28 days to $10.

The parking fee boost is the largest of several fee increases that will be considered by the full council today.

Fee increases are often considered before the rest of the budget, to give the city comptroller time to verify they will produce the revenue projected by the administration. Other fee increases on the agenda are aimed at businesses.

Wal-Mart, GE launch Chinese credit card

2006-10-23T23:02:00.000-07:00

BEIJING Wal-Mart Stores Inc. and General Electric Co.'s finance arm are joining the race for a share of China's growing consumer credit market by launching their own credit card this week, a Wal-Mart spokesman said Tuesday.

The card is to be formally launched on Friday but the companies began taking applications on Monday, said Jonathan Dong, a spokesman for Wal-Mart China. Wal-Mart's partners are GE Money and China's Shenzhen Development Bank Ltd.

The card will be part of the Visa network and can charge purchases in China's currency, the yuan, or a foreign currency such as the U.S. dollar, Dong said.

"It can be used throughout the country as well as overseas," Dong said.

Chinese and foreign banks and credit card companies are expanding in China in hopes of tapping its growing consumer market as Beijing eases restrictions on their operations.

Chinese banks that have taken on foreign banks as strategic investors have cited their expertise in issuing credit cards as a key reason for seeking them out as partners.

Wal-Mart's new credit card is the second issued by the Bentonville, Arkansas-based company in China in as many months.

In September, the company issued a card with British-owned HSBC Corp. and China's Bank of Communications Ltd., according to Dong. That card is part of the Mastercard network.

The cards, which bear the Wal-Mart logo, are both a marketing tool for the company and a service to customers, Dong said.

"It gives us a great branding advantage. The card I carry has the Wal-Mart logo on it. People are surprised to see it," he said by phone from the company's China headquarters in the southern city of Shenzhen.

Wal-Mart has been expanding rapidly in China, where it opened its first outlet in 1996. The company now has 66 stores with 36,000 employees and news reports say it is bidding to buy a Taiwanese-owned chain of hypermarkets in a US$1 billion (€700 million) deal.

The credit card with GE will be issued in southern China, while the card with HSBC was issued in the north, Dong said.

The strategy reflects the limitations of China's developing banking and credit industries, where most companies lack a nationwide service network.

Online Secret: Credit Cards for Everyone

2006-10-22T23:18:00.000-07:00

Credit cards popularity has increased over the last 20 years. There is a wide range of credit cards available out there and they are now accessible almost for everyone. There are unique cards that offer lots of benefits to the holders.

Some cards have small fees and offer a pack of rewards in exchange, but there are also cards with no fees, no charge for balance transfers and you’ll even find 0% interest rates offers for a period of time.

Wide range of Credit Cards

You can’t even begin to imagine how many options are out there. There is a huge variety of cards ranging from Business credit cards, Rewards credit cards, Low interest credit cards, Student credit cards, Airline Rewards credit cards, Sub-prime credit cards, Secured and unsecured credit cards and so on. There are so many options that sometimes it can become very difficult to choose a particular one or compare the options to see which one best suits your needs.

The credit card industry has grown outstandingly in the last decade, since the market keeps growing everyone wants a share and new companies continue to add options to the already crowded market. Also taking this into account long-established credit card providers are offering better terms on their traditional cards. Thus, the key to getting the right card for you is to get an organized comparison of what the market has to offer and see which credit card has the most advantageous terms. This is best done by searching online for sites comparing different type of credit cards. These sites will also let you apply for the cards online so you won’t even have to move from your home in order to get approved.

Shopping online

Overcoming common but unjustified fears, more and more people are shopping online. Online shopping has become safe and regular practice for young people who feel more comfortable shopping online than in regular stores. Credit cards have a lot to do with this new approach to shopping and you can easily notice that’s almost impossible to find an online store that doesn’t have credit cards as a payment option, furthermore in many cases it’s the only payment option available.

Most credit cards have a number of customer protection programs to make sure their clients are not victims of fraud or identity theft by the use of credit cards in online stores. Moreover, through some insurance policies, the credit card companies or their affiliate insurance companies take responsibility for frauds and unsuccessful transactions and compensate the client with a reimbursement.

Traveling Abroad

Credit cards have also become a reliable aid when traveling abroad. Paying with a credit card saves you from the trouble of exchanging currency and the dangers that this transaction implies when you don’t do it on a well known institution which are not easily found everywhere. Many Credit cards also offer medical aid when abroad and free emergency telephone calls. Also when lost or stolen you can easily cancel them to prevent them from being used by calling a toll-free telephone number. Since most credit card companies have offices all over the world, you can get personalized assistance everywhere and your cards can be replaced if stolen, lost or damaged.

Seoul Taxis to Accept Transit Cards

2006-10-22T08:06:00.000-07:00

The Seoul metropolitan government said yesterday that transportation cards including pre-paid, T-money and credit cards can be used in taxis starting next year.

According to the plan, about 3,500-5,000 taxis will be equipped with the transportation card device for a three-month trial operation, and the city will install the devices in all taxis in Seoul during the first half of the year.

Currently, Seoul has 72,000 taxis and they accept only cash. After receiving feedback from citizens, the city government will consider making it compulsory for taxi drivers to install the card devices.

``Although using cards became the norm, Seoul taxis doesn’t accept cards inconveniencing passengers,’’ said a Seoul City official. ``The plan will revitalize the use of taxis by improving the payment system.’’

However, it is questionable whether the new system will be smoothly adopted in Seoul, considering many troubles occurred in Inchon. Three years ago, the city of Inchon introduced the card payment system in taxis for the first time nationwide, but it had caused ceaseless problems both for drivers and passengers due to defects in the card devices.

The devices often failed to read the cards and imposed double-payments on some passengers. The city made it compulsory for taxi drivers to accept cards and fined those who didn’t install the card device in 2004. In response to the city’s policy, a driver even committed suicide.

Top two banks charge the most for credit cards

2006-10-22T08:04:00.000-07:00

The country’s top two banks, AIB and Bank of Ireland, are the only credit card providers that charge customers interest on money paid off their credit card if the bill is not repaid in full, according to a survey by The Sunday Business Post.

The survey asked providers whether a customer with a €1,000 bill would be charged interest on the €1,000 if they repaid €900 by the repayment date, or if the customer would only be charged interest on the outstanding €100. Only AIB and Bank of Ireland said the customer would pay interest on the €1,000.This means customers of the two banks could pay more than 18 per cent interest on money they have already repaid to their bank, simply because they did not repay in full.

Bank of Scotland, EBS Building Society, First Active, National Irish Bank, Permanent TSB, Tesco and Ulster Bank said the customer would only pay interest on the outstanding €100.

Barclays and MBNA said the customer would pay interest based on the average amount owed on their credit card each day. A spokesman for AIB said it charged interest in this way ‘‘as an incentive to customers to pay off their bill in full and on time’’.

‘‘If a customer made €1,000worth of credit card purchases on March 17 and did not repay their bill by May 16 when the payment was due, they would be charged interest of €21.88,” said the bank’s spokesman.

David McCarthy, managing director of Galway financial consultants McCarthy and Associates, said: ‘‘Credit card providers are charging what they like. Charges for credit card transactions outside the eurozone can be very prohibitive and you often don’t notice them because they’re built into the exchange rate.”

When customers use their credit card to buy something or withdraw cash in a non-euro currency, the credit card provider provides a foreign exchange service.

‘‘The rate offered by credit card providers is substantially lower than the market rate,” said McCarthy.