LowCards.com Weekly Credit Card Update December 21
Consumer Group Warns of Card Surcharges
Credit cardholders must be on the watch for new check-out fees that merchants will be able to impose starting in January under a class-action settlement with Visa and MasterCard. But merchant trade groups say they don’t expect many retailers will start charging new “checkout fees,” noting it could alienate customers and drive business to their competitors. They note that 10 states have bans against surcharges, so merchants there would not be able to impose them. Story by Andrew Johnson for the Wall Street Journal.
U.S. to Review Consumer Credit Reporting Complaint
The CFPB is reviewing whether credit-reporting agencies are breaking the law by not doing enough to correct potentially erroneous consumer credit reports. An assistant director at the CFPB told a Senate panel that some firms are failing to pass along to creditors all of the documentation that consumers provide when disputing information in their reports. Story by Sarah Lynch for Reuters.
Visa Discloses CEO’s Compensation
Visa’s new Chief Executive Officer, Charles Scharf, will receive $950,000 per year in salary as well as $19 million in restricted stock and stock options, according to the regulatory filing. Visa will also reimburse Mr. Scharf up to $10,000 per month for the cost of temporary housing and related expenses through June 30, 2013. Story by Natalie Rutledge for LowCards.com.
UBS Fined $1.5 Billion in Growing Libor Scandal
Swiss bank UBS admitted fraud and accepted a $1.5 billion fine for its role in manipulating global benchmark interest rates. The controversy is expected to expand to other big lenders and spark criminal as well as civil lawsuits against individuals involved. The UBS fine comes a week after Britain’s HSBC agreed to pay a record $1.92 billion to settle a probe in the United States into laundering money for drug cartels. Story by Katharina Bart and Tom Miles for Reuters.
Five Tips for Managing Credit Card Debt in 2013
A new year is just around the corner. Undoubtedly, millions of people will be making resolutions to lower their credit card debt in 2013. Here are five tips to help lower and manage your credit card debt in the New Year. Story by Lynn Henderson for LowCards.com.
Chase Damages Woman’s Credit with $16,159 Error
A California woman said her applications for credit cards were being rejected because of a huge $16,159 stain on her credit report. She found that the credit reporting agencies had been told that in 2007, a court ordered her to pay that to Chase. Chase did not respond to the woman’s complaints until after CBS got involved. She has since received a letter from the bank saying there was never a judgment against her. That letter has been passed on to the credit bureaus, which have cleaned up her credit reports. Story by Chris Morran for the Consumerist.
LowCards.com Weekly Credit Card Rate Report
Based on the 1000+ cards in the LowCards.com Complete Credit Card Index, the average advertised APR for credit cards is 14.32 percent, identical to last week’s average of 14.32 percent. Six months ago, the average was 14.30 percent. One year ago, the average was 14.00 percent.