Credit Card News

Credit Card News

Some analysts are now predicting that credit card charge offs are likely to decrease somewhat between the first and second quarters, and then start expanding again in the final half of 2012, leading to charge off rates for the nation's largest lenders finishing the year higher than when it began, according to the new report from Fitch Ratings entitled "Credit Cards: Asset Quality Review." Currently, the net charge off rate for the nation's seven largest credit card lenders stands at just 4.02 percent of all accounts, and based on current trends in delinquency - which are usually considered

Though many Americans have been conscientious in recent years about the amount of credit card debt they carried, there was a spike in revolving credit in the month of March as more consumers carried a balance from one month to the next, according to the latest statistical release on consumer credit from the Federal Reserve Board. In all, the amount of debt owed on these accounts by consumers nationwide spiked 7.8 percent to a total of $803.6 billion in March, up from $798.5 billion in February.

Between 2007 and 2012, a number of economic factors came together to create tough conditions for the credit card issuing industry, including higher unemployment, declining home prices and tightening credit conditions in general, according to a new report from industry research firm IBISWorld. During that time, the revenues for the credit card issuing industry fell commensurately, by about 4 percent annually to a projected value of $50.8 billion by the end of the year.

Consumers nationwide continued to feel better about the approach their credit card lenders take to customer service and were therefore more likely to forgive any missteps they felt they experienced in dealing with those companies, according to the latest annual Forgiveness Ratings issued by the Temkin Group. Forgiveness is the key element of customer loyalty, and is based on the functionality, accessibility and emotional factors consumers experience in dealing with companies.

Credit card issuers have begun slowly rolling out a more secure offering to some of their more affluent borrowers because the payment technology is more or less the only one used overseas, but there has been considerable discussion over whether a wider rollout is feasible, according to a report from Credit Union Times. The new technology - known as chip and pin or EMV - has been widely used in Europe and Asia for years, and the U.S. is the only developed country not to rely on it.

Women are both more likely to mishandle their credit card accounts and simultaneously have fewer positive behaviors than men, according to a new study from the independent securities regulator FINRA. Perhaps the most troubling data to come out of the survey found that 60 percent of women and 55 percent of men typically carried a balance on their accounts from one month to the next - the most common credit misstep consumers made.

Most of the nation's six largest credit card lenders saw instances of both late payments and accounts so far behind that they had to be written off as uncollectable drop once again in March, according to a report from Dow Jones Newswires. Those lenders - American Express, Bank of America, Capital One, Citi, Discover Financial, and JPMorgan Chase - have enjoyed steadily declining rates of delinquency and default for more than a year and a half, and only two saw charge offs tick up last month.

Late last month, lawmakers in Congress held a pair of hearings on the topic of the necessity for regulation of the mobile payment industry, weighing arguments on both sides of the issue, according to a report from American Banker. On the one hand, some experts have noted that because mobile payments are expected to become more or less ubiquitous within the next three years or so, it may be necessary for both consumers and the companies pushing these payment platforms to have as much of an understanding and regulatory presence in place as soon as possible.

By the end of 2012, it's projected that charge offs - the number of credit card accounts that are so far behind on payments that lenders have to write them off as being uncollectable  - will tumble for the nation's six largest lenders by another 15 or 20 percent to a low of roughly 4.5 percent, according to new data from Moody's Investors Service.

New data from Javelin Strategy and Research shows the amount of consumers who carried credit and debit cards shrank last year, and the number of those who had their own prepaid card accounts expanded, according to a report from Bloomberg News. Last year, the number of people who had a credit card slipped to 67 percent of consumers from 74 percent in 2010, and debit cardholders fell to 66 percent from 78 percent.