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Latest bank fee is for paying off credit card on time every month

Thursday, October 22nd, 2009

Latest bank fee is for paying off credit card on time every month

ou floss regularly, yield to oncoming traffic and use your credit cards judiciously, dutifully paying off your balance every month.

You may believe that your exemplary behavior shields you from unexpected credit card fees. Sadly, that is no longer the case.

Starting next year, Bank of America will charge a small number of customers an annual fee, ranging from $29 to $99. The bank has characterized the fee as experimental. But card holders who have never carried a balance or paid late fees could be among those affected.

Citigroup, meanwhile, has started charging annual fees to card holders who don’t put more than a specific amount on their cards, typically $2,400 a year. Other banks are charging inactivity fees if customers don’t use their credit cards during a specific period of time. You heard that right: You could be spanked for staying out of debt.

Read more at: USA Today

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{Photography by Andres Rueda}

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Austan Goolsbee – Credit Card Bill Kicks in August 20, 2009

Friday, August 21st, 2009




Austan Goolsbee of President Obama’s Council of Economic Advisers talks about the Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009 – also known as the Credit Card Bill of Rights – which he worked hard on and which kicks in today. Watch the video to get a taste of the types of credit card headaches you won’t have to deal with anymore.

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DefCon: ‘Credit Hackers’ Win the Credit Card Game … Legally

Sunday, August 2nd, 2009

Hacking

Hundreds of “credit hackers” are legally gaming financial institutions by taking advantage of loopholes in the U.S. credit-reporting system, a security researcher says — warning that identity thieves could follow suit.

Christopher Soghoian, a fellow at Harvard’s Berkman Center, took a security expert’s eye to the tricks already in use by a healthy subculture of clever consumers who have managed to garner zero-interest loans and erase some information from their credit profiles. He’s presenting his findings Saturday at the DefCon hacker convention.

“The techniques outlined in this paper are not traditional hacking,” he said in an interview. “All that is being done is taking advantage of the formalized structure of the process.”

In his paper (.pdf), Soghoian highlights several approaches perfected by the credit hackers.

In one ploy, the consumer generates a massive amount of quick credit by carefully timing simultaneous applications from different lenders. This takes advantage of the fact that it takes several days for an inquiry to appear on a consumer’s credit report, leaving issuing banks blind to the parallel applications.

Read more at: WIRED Magazine

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{Photography by Ted Percival}

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Chase dumping former WaMu card holders

Friday, July 31st, 2009

Trash at the Curb

Steven Lobdell points out an image on Chase bank’s Web site that says “Welcome WaMu customers. We’re here for you.”

But, apparently not for him. Lobdell is one of a group of former Washington Mutual credit card customers who were abruptly dumped by Chase in recent days. He holds two Chase cards; both were canceled as of July 15.

“It’s kind of ironic, isn’t it?” he said. “I think Chase is two-faced….We were good enough for Washington Mutual, why not good enough for Chase?” Across the Internet, thousands of former WaMu customers are expressing the same outrage. They say Chase is dumping them as customers, despite their solid payment records.

JP Morgan Chase & Co. acquired Washington Mutual and its troubled portfolio of credit cards in September, at the height of the banking system collapse. While Chase has recently set about to tidy up the ranks of its credit card holders, consumers are bearing the brunt of the cleaning. Two weeks ago, Chase began forcing some customers to raise their minimum monthly payments from 2 to 5 percent. And now, it’s cutting off some customers all together. Thousands of complaints from former Washington Mutual customers can be found on personal finance blogs all across the Web.

Read more at The RED TAPE Chronicles

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{Photography by Striatic}

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Network Solutions breach exposes nearly 600,000

Wednesday, July 29th, 2009

Credit Cards

Network Solutions is investigating a breach on its servers that may have led to the theft of credit card data of 573,928 people who made purchases on Web sites hosted by the company.

Networks Solutions notified 4,343 of its nearly 10,000 e-commerce merchant customers on Friday about the breach. It affects 573,928 cardholders whose name, address, and credit card number were exposed between March 12 and June 8, said Susan Wade, a spokeswoman for Network Solutions.

Mysterious code was discovered in early June on servers hosting e-commerce customer sites during routine maintenance, she said. The company called in a third-party forensics team to help with the investigation, and the team was able to crack some of the code on July 13, determining that it could be related to credit card data, she added.

Credit card transactions were intentionally diverted by an unknown source from certain Network Solutions servers to servers outside, Network Solutions wrote in an e-mail to merchant customers.

“So we notified law enforcement and began the process of notifying our customers,” Wade said. “At this point, we don’t have a reason to believe that (the data) has been used, but we are working with the credit card companies,” nonetheless.

Network Solutions also is paying to have credit-monitoring specialist TransUnion help the merchants notify their customers according to data breach notification laws in effect in certain states. Affected consumers will get 12 months of free credit-monitoring services.

It’s unknown how the malicious code got onto the system and where it came from, Wade said. (Read more at: cnet)

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{Photography by Andres Rueda}

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Colleges Pimping Their Students

Thursday, July 9th, 2009

Students on Campus

Students go to universities to gain an education, to discover their interests, to network, and to pursue degrees in their chosen fields of study. It should be a time to focus on academics and perhaps to have some fun. However, students are increasingly being targeted by predatory credit card lenders. Moreover, instead of safeguarding our students, universities and their alumni associations have elected to assist these card-issuing banks in exchange for additional revenue.

Some Universities in Bed Credit-Card Companies

Recently, BusinessWeek has uncovered over two dozen secret contracts between card-issuing banks and public universities. The main offense is universities are selling students’ personal information, typically to the highest bidding credit-card companies. This allows for the card-issuing banks to target their marketing campaigns to students. For example, the Ohio State alumni association worked out a seven-year, multimillion dollar deal with MBNA where the association provided the bank with email addresses, home addresses, and phone numbers for their 55,000 undergraduates. Under the contract, the card company was allowed to send at least 5 direct-mail marketing campaigns each year and contact students at least three times by phone each year. (Read more at: Watson Inc)

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{Photography by Euthman}

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Barclaycard cuts minimum repayment on credit cards

Friday, June 26th, 2009

Cutting

Barclaycard extended to some of its customers a lower minimum repayment – 1.5% Vs. the prior 2.25% of the remaining balance. This will give some of its customers additional flexibility in these tough economic times. A Barclaycard spokesman said: “We are doing this to help customers. This is an option we are giving to selected customers for them to be able to make a reduced minimum repayment for a limited period if the customer chooses to do so. We understand that some customers may appreciate this additional flexibility during the current economic circumstances.” (Read more at: Compare Top Cards)

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{Photography by Gregg O’Connell}

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Hidden Credit Card Fees

Thursday, June 25th, 2009

Hidden

Credit card debt is one of the main concerns the average American household is faced with today, but before one can make an efforts to reduce credit card debt, it is important to look at some of the ways the credit card companies trick the public into paying more than they should by sticking them with those credit card fees and rates that are covertly hidden within the fine print.

There are many fees that can be found within the credit card terms and conditions, fees such as late fees, overlimit fees, balance transfer fees, and ATM cash advance fees. Yes, these are hidden fees and must read very carefully, but let’s face it; we all know about those tricky fees. Let’s talk about some ways that the credit card companies really trick the average card holder: . . . (Read more at: Professional Debt Advisor)

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{Photography by: Faithful Chant}

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Recession likely to change credit card habits

Monday, June 1st, 2009

Shopping Mall

For decades, the credit card has symbolized the American way of life, but this recession may force both the symbol and the reality to change.

Spooked by plunging home prices and mounting job losses, consumers have cut back on credit card use, pumping less cash into an economy that depends on their ability and willingness to spend.

Meanwhile, Congress, reacting to complaints about credit card marketing practices, has tightened the rules on penalties and fees – spurring bankers to warn that consumer credit will become more costly and difficult to obtain.

The credit card issue is part of a larger problem of how to ensure that the financial system supplies enough credit to keep the economy moving without providing so much that it overheats and collapses. (Read more at; SFGate.com)

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{Photography by Retinafunk}

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