LowCards.com Weekly Credit Card Update–April 19, 2013
ATM Fees on the Rise
Using an ATM outside of your bank’s network is becoming more expensive. The average fee a bank charged a non-customer for using their ATM in 2012 was $2.10, a 20 percent increase from the $1.75 in 2007, according to a GAO report. Also on the increase is the percentage of financial institutions charging these fees–from 87 percent to 96 percent–as banks look to offset the higher costs of operating the machines. Story by Blake Ellis for CNN Money.
Schnucks Grocery Stores Says 2.4M Credit & Debit Cards Affected In Security Breach
Schnucks reported that 2.4 million credit and debit cards could have been compromised as a result of a security breach. During the four months between December and March, card numbers and expiration dates were accessed, but no personal data such as names or addresses according to the company. Story by Mary Beth Quirk for Consumerist.
What Happens to a Person’s Credit Cards After They Die?
Credit card debt that remains after a person dies can result in major problems for the descendants. Specific rules for how credit card debt is treated after death depend on the details of the account. Story by Gregory Hamel for Demand Media.
CFPB Report Highlights Problems Older Americans Have With Confusing Financial Advising Industry
The Consumer Financial Protection Bureau published a report highlighting problems with the so-called “senior designation” credentials that many financial advisers use to market their services to older Americans. The report found that the names and acronyms of senior designations confuse consumers and there is a wide variety of required training, qualifying exams, and oversight associated with different designations, and there is a lack of supervision and enforcement. Story in the News Park Forest.
American Express’ 1Q Profit Up as Spending Rises
A 6 percent increase in spending by American Express cardholders led to a 2 percent jump in net income for the issuer. Annual cardholder membership fees also increased from a year earlier. American Express cardholders tend to be more affluent than other credit card users, which was one reason the company has done well during the economy’s slow rise out of the recession. Story by the Associated Press.
EU Launches Antitrust Probe of MasterCard fees
The European Commission has begun an investigation regarding the fees MasterCard charges consumers for card transactions made while visiting Europe. Some of the firm’s “inter-bank fees and related practices may be anti-competitive,” according to the European Commission. The Commission will also examine the company’s restrictions on merchants that want to save money by using banks outside their own country. If found guilty, MasterCard could face fines up to $740 million. Story by Roy Williams for LowCards.com.
Earnings Slide at Capital One, But Beat Expectations
Capital One’s first-quarter earnings fell 24 percent, due to a slight revenue decline and the fact that last year included a $594 million gain from its acquisition of ING Direct. Capital One has seen some weakening in its card portfolio in the past year–largely because of the integration of the HSBC purchase, which included a large portion of store credit cards, a kind that often see higher losses than general-purpose cards. The company’s domestic credit card business posted a 25 percent increase in earnings and a revenue increase of 48 percent. Story by Tess Stynes for The Wall Street Journal.
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 14.26 percent, slightly below last week’s average of 14.28 percent. Six months ago, the average was 14.21 percent. One year ago, the average was 14.33 percent.