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Credit card reforms big topic in Congress

February 17, 2009 | USA Today, alternatives, industry, media coverage | Comments (0)

From USA Today:

As credit card fee increases squeeze more consumers, lawmakers are stepping up efforts to reform criticized practices.

In the latest round of fees, Capital One (COF), Citibank (C) and HSBC are raising interest rates for millions of credit card borrowers. Chase (JPM) is tacking on a $120-a-year fee and raising the minimum payment from 2% to 5% of the balance for hundreds of thousands of consumers with low interest rates. The actions come as unemployment rises and more consumers struggle to pay their bills.

A fee + interest

February 9, 2009 | alternatives, industry | Comments (0)

That’s the new credit card policy of JP Morgan Chase.  From USA Today:

In the latest fee rolled out by a bank, JPMorgan Chase, the nation’s largest card issuer, has begun charging hundreds of thousands of borrowers a $10-a-month, or $120-a-year, fee. Industry watchers say the fee is unusual because of its size but also because Chase is adding it to borrowers’ monthly balances, where it accrues interest. The bank is also raising the same consumers’ minimum payments to 5% from 2%.

THE CREDIT TRAP: Changing terms squeeze credit card customers

The change affects consumers with low promotional rates who have carried a large balance for more than two years and made little progress paying it off, says Chase spokeswoman Stephanie Jacobson.

Sign of the times

February 5, 2009 | alternatives, industry, media coverage, personal finance | Comments (0)

USA Today reports on the record number of credit card deliquencies: 

The amount of credit card debt delinquent at least 60 days reached 3.75% in December, the latest month available, surpassing the previous high of 3.73% set in February 1998, according to Fitch Ratings, which rates corporate debt. Late payments on credit cards, a precursor to charge-offs, rose during most of 2008 before sharply accelerating in the fourth quarter.

If you own bank stocks, you’re in big trouble.