In an article titled "The next credit crunch", Fortune senior editor at large writes that "we may be approaching the end of the most worrisome bubble of all: the standard-of-living bubble."

In an article titled "Global Trail of an Online Crime Ring", Brad Stone writes for the New York Times about the investigation leading up to last weeks announcement by the Department of Justice and other agencies about the indictments of 11 people involved in compromising millions of credit and debit card accounts.

Several articles of note have recently appeared "slamming" the credit card - including various credit card issuer business practices, etc. Below are some highlights:

• The Debt Trap - a series of articles and accompanying multimedia content that the New York Times has been running for the last week or so. The second article in the series ran on Saturday: Outside U.S., Credit Cards Tighten Grip.
• Listen to the 56,000 - a New York Times editorial that ran last Tuesday.
• Sunday's Washington Post Business section carried on its front page the article "Credit Card Industry Faces Reforms" by Nancy Trejos.
• Sunday's Parade magazine section included the article: Don't Get Clobbered By Credit Cards! by Gary Weiss. The online article includes a poll asking readers whether Congress should regulate credit cards.
• Today, ABC News Consumer Correspondent Elisabeth Leamy writes Credit Card Junkies, Get Your Scissors.

Do you know of any other similar recent articles? If so, please post a comment linking to them or email us Feedback by clicking on the link in the top toolbar on this page.

In an article titled "The End of Credit Card Consumerism", Kimberly Palmer writes for US News & World Report: "A sharp slowdown, record-high gas prices, high consumer debt levels, a plunging real estate market, and the growing green movement all seem to be conspiring to dethrone King Consumer and transform the economy and the American way of life for years to come."

Earlier this week in an editorial titled "Listen to the 56,000", the New York Times said: "Federal Reserve should swiftly adopt its proposed rules against unfair or deceptive credit card practices. But the real burden to curb these abuses falls on Congress."

The Federal Reserve's public comment site for its proposed credit card and overdraft fee regulation changes now lists 15,775 comments - along with a consolidated list of over 27,000 "form letters" that it has not individually posted to the site.

Among the most extensive comments received are those of Bank of America filed by executives Lance Weaver and Susan Faulkner in a 50+ page filing. They begin: "The proposal would substantially reinvent the business of credit card lending and deposit taking. ... This proposal will have a broad impact on the economy both at the retail level and in highly complex securitization markets, slowing growth and limiting access to financing."

Sen. Carl Levin, D-Mich., has announced that he has "urged the Federal Reserve to strengthen its proposed regulation aimed at unfair or deceptive credit card practices" - describing the credit card industry as “rife with unfair, deceptive, and predatory practices.” In a 13-page letter , Levin, chairman of the Senate Permanent Subcommittee on Investigations, detailed several abusive practices used by credit card issuers he believes need to be ended.   » Continue Reading

Wells Fargo Financial National Bank, a subsidiary of Wells Fargo & Company, has launched a new revolving consumer credit card program for the jewelry industry called Wells Fargo Jewelry Advantage. The new credit card program offers "jewelry retailers prompt, automated decisions and easy-to-use online processing and reporting."   » Continue Reading

Javelin Strategy & Research has released a report on credit cards and consumer spending finding that Americans are cutting back on credit card use and having difficulty paying off balances. Javelin found "conservative spending behaviors as a result of the economic downturn and the ramifications of the mortgage crisis, soaring fuel costs and rising food prices."   » Continue Reading

Consumer Action has released its annual 2008 Credit Card Survey, the latest annual survey that examined 41 cards from 22 financial institutions in the United States. The survey identified several credit card issuer practices that Consumer Actions says "put even good consumers at risk: Any time, any reason changes in terms; Reductions in cardholder’s credit limits; Default rate “purgatory” — once in, you may never get out."

In an article titled "Credit Cards: How to Protect Your Limits", Carl Winfield writes for Business Week about credit card issuers cutting available credit lines in response to the current economic situation. "Issuers use lower limits to warn consumers they are on the road to financial ruin, says John Hall, a spokesman for the American Bankers Assn."

In an article titled "The College Credit-Card Hustle", Jessica Silver-Greenberg and Ben Elgin write for Business Week about how universities and alumni associations "are selling students' personal information to big credit-card companies eager for young customers."

On September 20-21, 2007, the Payment Cards Center and the Research Department of the Federal Reserve Bank of Philadelphia co-sponsored the fourth in a series of joint research conferences focusing on important issues in consumer credit and payments. The discussion brought together academic scholars and industry experts to present and discuss the latest research on these topics. The conference included both theoretical and empirical papers. The PCC has just published a conference summary .

The Merchants Payments Coalition (MPC) issued the following statement in response to the House Judiciary Committee passing the Credit Card Fair Fee Act, H.R. 5546, today. The Committee voted 19 to 16 in favor of the Act.

“We applaud the House Judiciary Committee’s leadership with the passage of the Credit Card Fair Fee Act of 2008, H.R. 5546. Today’s victory is a landmark decision that reaches far across party lines in reining in Visa and MasterCard’s stranglehold over merchants and consumers alike. The Committee issued a loud, bipartisan wake-up call to credit card and financial services industry with the reporting of H.R. 5546, which they boasted would never see the light of day. The Committee not only reported the bill with 10 Democrats and 9 Republicans voting to report it, but defeated every poison pill amendment by similar bipartisan margins."   » Continue Reading

In an article titled "On credit card fees, blame game begins", Chris Frates writes from Politico. com about the legislative battle underway on Capitol Hill over interchange fees and whether pending legislation to provide merchants a way to directly negotiate interchange fees should be passed. According to Frates, "the debate has sparked a huge lobbying campaign marked by Capitol Hill visits and briefings, coalitions and ad campaigns."

In his Semiannual Monetary Policy Report to the Congress today, Federal Reserve Chairman Ben S. Bernanke concluded his remarks by discussing the rules that the Federal Reserve working jointly with the Office of Thrift Supervision and the National Credit Union Administration have proposed regarding unfair or deceptive practices for credit card accounts and overdraft protection plans.   » Continue Reading

In what's called "a groundbreaking joint effort by the nation's fastest growing union and trade associations representing merchants, the Service Employees International Union (SEIU), Food Marketing Institute (FMI), National Association of Convenience Stores (NACS), and the National Grocers Association (N.G.A.) sent a letter to every Member of the House of Representatives today calling on Congress to stop the nation's biggest banks and credit card companies from continuing abusive practices which harm American consumers and businesses. The groups jointly urged Congressional action to pass the Credit Cardholders' Bill of Rights Act of 2008 (H.R. 5244), the Credit Card Fair Fee Act (H.R. 5546 and S. 3086), and the Credit Card Interchange Fees Act of 2008 (H.R. 6248)."   » Continue Reading

In a press release, Consumers Union applauded "the government’s effort to protect consumers from unfair credit card practices and calls for quick adoption of the proposed credit card rules in comments submitted to the Federal Reserve Board about regulations proposed by the Fed along with the Office of Thrift Supervision, and National Credit Union Administration."   » Continue Reading

ChargeSmart has announced the launch of a web-based payment service allowing consumers to pay their mortgage, auto and education loans as well as utility bills using a major credit card.   » Continue Reading

In an article in today's New York Times titled "Credit Card Overhauls Seem Likely", Jane Birnbaum writes that consumer groups' pleas to lawmakers for help "may well mean that the industry will face some significant regulation by early next year."

In early May, the Federal Reserve proposed new rules to prohibit unfair practices regarding credit cards and overdraft services that would, among other provisions, protect consumers from unexpected increases in the rate charged on pre-existing credit card balances. The Fed is still soliciting comments on the proposed changes - although the comment window closes later this month. The comments are posted publicly on the Fed's web site - so far, over 9,800 comments have been submitted.

In an article titled "The Check Is In The Mail - There's No Credit Crisis. Most Americans Don't Let Their Consumer Debt Get Out Of Hand", Newsweek's Jane Bryant Quinn writes that "although the overall burden of debt isn't as bad as the headlines make it sound, a small but growing minority is indeed in crisis. The banks are their enablers. Credit cards are so profitable that banks have been dealing preapproved cards to practically anyone with a heartbeat and a mailbox."

Ohio Treasurer of State Richard Cordray a few weeks ago asked Ohioans to provide his office with their comments on credit card issuer practices they consider unfair. Cordray intends to forward those comments on to the federal agencies and lawmakers considering new rules concerning certain credit card practices. In a Q&A, Cordray shares what he's seeing in some of the comments his office has received.

Javelin has announced a new report titled "Credit Card Satisfaction—An Effective Acquisition and Retention Strategy Must Focus on Multiple Facets of the Relationship". The report analyzes consumer perceptions affecting selection of a credit card issuer, as well as choosing a card at the point of transaction.   » Continue Reading

In May, L.L.Bean announced it was terminating its card issuing relationship with Bank of America. Today, L.L.Bean and Barclays announced the launch of the new L.L.Bean Visa card, which will be available tomorrow, July 1. According to the two companies, "the card rewards loyal customers with coupon dollars good toward L.L.Bean merchandise every time they use the card, plus a wealth of new and improved benefits to make the card even more rewarding than before." As part of the deal, Barclays earlier this month opened a new call center in Maine.   » Continue Reading

APACS has announced that £354 billion was spent on plastic cards in the UK in 2007 - a 10 percent increase over 2006 - and that spending of debit cards accounted for 62 per cent of total plastic card spend and 72 percent of total plastic card transactions. Debit cards were used to make 4.9 billion purchases in the UK while credit and charge cards were used to make 1.9 billion purchases. Credit card credit outstanding in the UK fell by £1.1 billion during 2007.   » Continue Reading

In an article titled "Nobody's Snapping Up GE's Plastic", Robin Sidel writes for the Wall St. Journal about GE's efforts to sell its $30 billion credit card business because of potential buyer concerns about consumers' ability to repay their credit card debts. In particular, there's concern that GE's private label portfolio could rank lower in consumers' payment hierarchy when times are tough.

On Saturday, Eric Dash of the New York Times reported on how some credit card issuers are reducing the amount of available credit on their credit cards for millions of Americans. In addition, he notes that mail solicitations for new cards and credit balance transfers are also off this year.

Meta Payment Systems has announced it has contracted with Fiserv and TransUnion "to enhance the next generation of its award-winning iAdvance product. The partnerships enable Meta to expand its short-term, small dollar loan alternative that is accessed immediately on a MetaBank-issued prepaid card."   » Continue Reading

In an article titled "Card Issuers Get Personal To Check Credit", Robin Sidel writes for the Wall St. Journal about how credit card issuers are beginning to consider factors other than credit scores in determining the amount of credit they'll extend on their credit cards.

TransUnion.com has announced the results of its analysis of trends in the credit card lending industry for the first quarter of 2008 finding that, for the first time since the beginning of 2007, average credit card debt and national credit card loan delinquency (the ratio of borrowers 90 or more days past due) experienced statistically relevant sequential quarterly declines.   » Continue Reading

Glenbrook's Bryan Derman reflects on last week's actions by the FDIC and the FTC against CompuCredit and its sponsoring banks - and wondering how this new focus by the regulators on the activities of third parties might affect some other bank businesses in the US.

The Office of the Comptroller of the Currency has released its 14th annual Survey of Credit Underwriting Practices and reported that commercial and retail underwriting standards tightened after four consecutive years of eased underwriting standards.   » Continue Reading

Virgin Atlantic Airways has launched a new rewards credit card, the Virgin Atlantic American Express Card issued by Bank of America which earns 3 miles for every $1 spent on Virgin Atlantic purchases and also offers "the opportunity to redeem points for exclusive rewards such as a trip into space."   » Continue Reading

Yesterday, the US Senate Committee on the Judiciary held a hearing on the subject of ""Short-Change for Consumers and Short-Shrift for Congress? the Supreme Court's Treatment of Laws That Protect Americans".

Among those testifying was Robert Lawless, Professor of Law and the Galowich-Huizenga Faculty Scholar at the University of Illinois College of Law. (Lawless is also one of the active bloggers on the Credit Slips blog.) In his prepared testimony for yesterday's hearing, he discusses the Supreme Court’s decision in Marquette National Bank v. First of Omaha Serv. Corp. - noting that national consumer lenders in the US operate in an environment that is free of usury restrictions because of the Marquette decision.

An 2004 paper by Mark Furletti titled "The Debate Over the National Bank Act and the Preemption of State Efforts to Regulate Credit Cards" and published by the Payments Card Center at the Federal Reserve Bank of Philadelphia provides more background on the federal pre-emption issue.

Federal Reserve Governor Randall S. Kroszner gave a speech earlier today titled "Protecting Consumers in the Credit Marketplace" at the Federal Reserve Bank of Cleveland Community Development Policy Summit in which he spoke to the Fed's activities with respect to better information disclosure to consumers about credit card terms as well as preventing certain "abusive practices" by credit card issuers.

In a speech given today by Barack Obama in Chicago, he commented on the credit card industry: "But many more Americans aren’t falling into debt because they made an irresponsible decision; they’re falling into debt because credit card companies are pushing them over the edge. For too long, credit card companies have been using unfair and deceptive practices to trick Americans into signing agreements they can’t afford."

In addition to today's action by the Federal Trade Commission against CompuCredit, the Federal Deposit Insurance Corporation (FDIC) has issued enforcement actions against CompuCredit and two FDIC-supervised banks "for allegedly marketing subprime credit cards in violation of the Federal Trade Commission Act (FTC Act) The FDIC settled with a third bank also involved with CompuCredit." The third bank was Columbus Bank and Trust, Columbus, Georgia, a wholly owned banking subsidiary of Synovus Financial Corp.   » Continue Reading

The Federal Trade Commission has announced the filing of a lawsuit charging CompuCredit Corporation and its wholly-owned debt collection subsidiary, Jefferson Capital Systems, LLC, with deceptive marketing practices in selling credit cards to consumers in the subprime market. The complaint is available online.

In his column today titled "The Great Seduction", New York Times columnist David Brooks writes about how, in his view, the US has moved from "industrious, ambitious, and frugal" to "financial decadence, the trampling of decent norms about how to use and harness money." He's stimulated by a recent report titled "For a New Thrift: Confronting the Debt Culture" from the Institute for American Values - a summary of which is available online in this article titled "A Nation in Debt" by Barbara Dafoe Whitehead.

Chase has announced Chase Exclusives - calling it "one of the banking industry’s widest ranging package of rewards" to encourage its checking account customers to expand their relationship with the bank. "Chase Exclusives provides all Chase checking accounts holders with better rates, more rewards and bigger discounts on nearly all other products offered through the branch."   » Continue Reading

Jennifer Levitz writes in today's Wall St. Journal about support groups and how they're increasingly dealing with consumers with serious credit card debt problems. She describes one church that "keeps fishbowls and scissors up near the stage for anyone inspired to cut up the credit cards on the spot."

The Federal Reserve has just published its monthly G.19 Consumer Credit report showing that revolving credit rose at an annual rate of 0.5 percent, slowing dramatically as compared to growth rates of 5.3 to 7.4 percent earlier this year.

Business Week's cover story this week is titled "Banks vs. Consumers (Guess Who Wins)" - an article by Robert Berner and Brian Grow that takes a look into how credit card issuers in the US use arbitration to handle cardholder disputes saying it is "a system in which it is exceedingly difficult for individuals to prevail." The article focuses on the role played by National Arbitration Forum (NAF), a for-profit company based in Minneapolis.

U.S. Senator Dick Durbin (D-IL) has introduced new legislation in the US Senate "to allow large and small businesses to negotiate directly with credit card companies to reduce the interchange fees that are charged on every credit card transaction."   » Continue Reading

Bankrate.com has published its latest look at credit cards with cash-back rewards features. Leslie McFadden writes: "When it comes to rewards credit cards, Americans love cash back. According to TNS Global's Financial Services research, 57.4 percent of rewards cardholders have cash-back cards."

Citi has announced it is offering its cardholders "an exciting, new benefit on participating credit cards called Extra Cash from Citi that allows customers to earn discounts on some of the biggest and most popular names in travel, entertainment and merchandise -- just for using their card."   » Continue Reading

While we're all suffering as consumers every time we fill up our gas tanks from the increases in gasoline prices, Vic Kolenc writes in an article titled "Card swipes hurt gasoline retailers" in the El Paso Times about fuel retailers complaining about credit card interchange fees. One fuel retailer comments: "For every $1 cash (sale), I bring in $2 in credit (sales). By the time I end up paying all the credit-card fees, I don't have much left."

APACS, the UK payments association, and ABTA, the UK travel association, have announced they've "published a consumer advice guide – Using your plastic overseas – which provides tips and useful information for holidaymakers and business travellers who will be using their cards abroad this summer."   » Continue Reading

Maria Aspan reports for the American Banker (subs. reqd) that L.L. Bean has posted on its web site that it will be terminating its current relationship with Bank of America, issuer of the L.L. Bean Visa card, effective at the end of June. On its web site, the retailer says it will be providing information about a new L.L. Bean Visa card in the coming weeks.

APACS has published its latest quarterly Statistical Release covering the first quarter of 2008. "In the first quarter of 2008 there were 1.8 billion plastic card purchases made in the UK totalling £91.1 billion. The number of purchases was 8.9% higher than in the first quarter of 2007, and spending was 8.9% higher. Debit cards accounted for 72.8% of all plastic card purchases compared with 71.1% in the first quarter of 2007."

The Government Accountability Office (GAO) has issued a new report today titled "Credit and Debit Cards: Federal Entities Are Taking Actions to Limit Their Interchange Fees, but Additional Revenue Collection Cost Savings May Exist" .   » Continue Reading

In an article titled 'Credit Cards Cost, No Matter What', the Washington Posts's personal finance columnist Michele Singletary writes that, even if you're paying off your credit card charges each month, you spend more when you use credit cards that if you just paid by cash. She suggests trying an experiment: "If you don't believe the research, try this experiment: For one month, don't use a credit card. Make all your purchases with cash."

Fifty percent of surveyed small business owners stated that “economic uncertainty” is one of the biggest challenges faced in the growth and survival of their business, according to the National Small Business Association’s 2008 Survey of Small and Mid-Size Businesses. Chase Card Services has published a set of five tips for small business owners to help manage their credit relationships.   » Continue Reading

Universal Studios has announced it has entered into a multi-year marketing and financial services alliance with GE Money and American Express. Under the arrangement, American Express becomes the official payment of choice at Universal Studios Theme Parks Resorts; GE Money becomes the Parks' official financial services sponsor; and the companies launch the new Universal American Express Card issued by GE Money.   » Continue Reading

Cards&Payments has released the results of its Annual Bankcard Profitability Study finding that credit card issuers in 2007 generated a sizeable profit, though down slightly from the previous year. According to the study, the industry posted a collective after-tax return on assets of $18.08 billion, or 2.79% of average outstandings - down 1.58% from $18.37 billion and 2.97% in 2006.   » Continue Reading

The Washington Post carries a Kiplinger.com story in today's personal finance section about Sam Sweet and how he's been effective at negotiating lower credit card interest rates from his card issuers. His strategy: he simply doesn't take "no" for an answer - typically escalating all the way to the president's office for each issuer.

Lisa Scherzer writes for the Wall St. Journal that more credit card issuers are closing inactive accounts. She writes: 'As credit-card delinquencies rise, closing inactive accounts helps companies reduce their exposure to risky credit holders.'

Celent has published a new report titled 'Disruption in the Payments World' saying that 'the current euphoric era for many issuers will be disrupted and quite possibly eliminated over the next three years.' Why? Celent's reasons include a forecast that interchange rates will begin to decline, that a large payments company will launch an alternative network to MasterCard and Visa, and that credit card issuers will need to diversify their payments mix by adding decoupled debit payment options.   » Continue Reading

APACS, the UK payments association, has released figures showing that the debit card retains its popularity at retailers, with spending on debit cards increasing by 11% last year. According to APACS, this increase stands in stark contrast to paper cheque spending which declined by 7.5% in terms of value and 13% by volume over the same period. Credit card spending at retailers in the UK has not grown over the last three years.   » Continue Reading

Discover Financial Services has announced that its Discover Card was ranked No. 1 in customer loyalty among leading credit card brands, according to the 2008 Brand Keys Customer Loyalty Engagement Index report. Brand Keys identifies the four most important drivers of brand loyalty in the credit card category as Rewards and Services; Fees and Flexibility; Ease and Speed of Interactions; and Protection and Precision. Discover Card has won the credit card category in the index 11 years in a row.   » Continue Reading

In her Thursday column titled 'Your Losing Hand', Michele Singletary reports for the Washington Post on last week's proposed rule changes by the US financial regulators re: credit cards. She writes: 'Although regulators are proposing to eliminate some of the more unsavory practices of the industry, many cardholders -- regardless of class, education or income -- can only win by not playing the credit card game.'

That's the title of a Dallas Morning News editorial this morning commenting on last week's proposed rules changes that says 'enough is enough.' The editorial continues: 'New regulation is overdue. Creditors have been free to hike interest rates at any time and for any reason – and then apply the new rate to purchases the consumer has already made.'

The Federal Reserve reported today that consumer credit increased at a 7.2 percent overall rate in March 2008 - with revolving credit increasing at 7.9 percent for the month.

In a column titled 'Banks' credit card bluster rings hollow', Los Angeles Times consumer reporter David Lazarus writes: 'I just love it when the credit card industry threatens to take its toys and go home.'

JPMorgan Chase has announced that it will purchase an undivided interest in Target’s credit card receivables for approximately $3.6 billion in cash representing approximately 47 percent of the principal amount of Target’s outstanding receivables.   » Continue Reading

We mentioned the Pen or PIN program in Australia earlier today. The Pen or PIN website includes several resources explaining what's happening including a general backgrounder, one for retailers, another for cardholders, and an FAQ for media. "From 4 June 2008, most American Express, Diners Club, MasterCard and Visa cardholders will have the choice to use a Personal Identification Number (PIN) to authorise transactions when using these cards in person. The introduction of PIN on these cards follows an industry-wide collaboration involving all major banks, financial institutions and card schemes operating in Australia."

The Sydney Morning Herald reports on the "Pen or PIN" project underway in Australia that will allow shoppers using credit cards to either sign their receipts as they've always done or choose to use a PIN instead beginning June 4. A spokesman said: 'The introduction of PIN on credit and debit cards will give cardholders a quick and easy alternative to signature authorisation when making purchases in person.' Meanwhile, the Herald Sun reports that a consumer group is concerned that a move to PINs 'could result in consumers being unable to dispute credit charges.' More details here.

In an editorial yesterday titled The Fed Aims at Credit Cards, the New York Times responded to the Fed's announcement on Friday about rule changes to address what it called "unfair practices" by credit card issuers and retail bank overdraft fees. The editorial called the proposed rules a "modest step forward" and quoted Rep. Carolyn Maloney of New York (author of her own "Credit Cardholder's Bill of Rights" legislation) saying "there are abusive, abusive, abusive practices going on now."

Earlier today, the Federal Reserve proposed new rules to prohibit unfair practices regarding credit cards and overdraft services. that would, among other provisions, protect consumers from unexpected increases in the rate charged on pre-existing credit card balances.

In addition, the proposed rules addresses practices in connection with a bank’s payment of overdrafts on a deposit account, whether the overdraft is created by check, a withdrawal at an ATM, a debit card purchase, or other transactions. The proposed rules require institutions to provide consumers with notice and an opportunity to opt out of the payment of overdrafts, before any overdraft fees or charges may be imposed on consumers' accounts.

The Fed has been joined in putting forth these proposed changes by the Office of Thrift Supervision and the National Credit Union Administration.

The Fed has provided a seventy-five day comment period - to approximately mid-July. Providing your comments to the Fed is easy:

• On the Fed's web site (scroll down to the bottom of the page to Regulation AA - click on submit comment)
• By email to: regs.comments@federalreserve.gov
• By fax to (202) 452-3819 or (202) 452-3102
• By regular mail to:

  Jennifer J. Johnson
Secretary, Board of Governors of the Federal Reserve System
20th Street and Constitution Avenue, NW
Washington, DC 20551

Be sure to reference Docket No. R-1314 in your written comments.

All comments will be public and can be viewed online on the Fed's web site. Pro or con - this is an important payment card industry issue worth your comments.

Adam Levitin writes on the Credit Slips blog about his take on the proposed Fed/OTS/NCUA Credit Card Regulations. "Some of the proposed rules are quite favorable for consumer interests. Others do not go far enough, however, and perhaps most importantly, there are several major issues that the proposed rules simply do not address."

Edward L. Yingling, president and CEO of the American Bankers Association, issued a press release today discussing the Federal Reserve's proposed rules regarding credit card practices and overdraft fees saying: “The Federal Reserve’s proposal is an unprecedented regulatory intrusion into marketplace pricing and product offerings. We are deeply concerned that these rules will result in less competition, higher consumer prices, fewer consumer choices and reduced consumer access to credit cards. In short, everyday consumers will bear the real cost of these proposals.   » Continue Reading

The Federal Reserve Board has announced proposed new rules to 'prohibit unfair practices regarding credit cards and overdraft services that would, among other provisions, protect consumers from unexpected increases in the rate charged on pre-existing credit card balances.' The Fed is acting in concert with the Office of Thrift Supervision and the National Credit Union Administration in pursuing these new rules.

"The proposed rules are intended to establish a new baseline for fairness in how credit card plans operate," said Federal Reserve Chairman Ben S. Bernanke. "Consumers relying on credit cards should be better able to predict how their decisions and actions will affect their costs."   » Continue Reading

The National Credit Union Administration (NCUA) Board has announced it has approved a joint proposed rule prohibiting credit card and overdraft service practices as unfair or deceptive under Section 5 of the Federal Trade Commission Act.

Asiana Airlines, Bank of America, and American Express have announced the launch of the new Asiana American Express Card from Bank of America. The card provides two miles per dollar on everyday purchases and access to members-only golf courses in Korea and throughout the Asia Pacific region.   » Continue Reading

The Office of Thrift Supervision (OTS) has announced it has approved a proposal to prohibit savings associations from engaging in unfair or deceptive acts or practices regarding credit cards and overdraft services that violate the Federal Trade Commission Act. The Federal Reserve Board and the National Credit Union Administration are expected to also approve the proposal shortly.

According to the OTS, the joint proposal addresses practices that have raised concern about fairness and transparency. For credit cards, the proposed rule would address: (1) unfair time periods for making payments; (2) unfair payment allocations; (3) unfair interest rate increases on outstanding balances; (4) unfair fees from credit holds; (5) unfair methods of computing balances; (6) unfair security deposits and fees charged to an account for the issuance of credit; and (7) deceptive offers of credit. For overdraft protection services on deposit accounts, the proposed rule would address: (1) a consumer’s ability to opt out of overdraft services; and (2) unfair fees for debit holds. A summary of the proposed rules is available online.   » Continue Reading

Tony Adams reports for the Columbus (GA) Ledger-Enquirer about yesterday's first ever annual meeting for TSYS as an independent company. 'Tomlinson [TSYS CEO] said his company will soon introduce a single card that lets consumers choose between a debit or credit transaction at the point of sale.' A webcast of the annual meeting is available at the TSYS web site.

A coalition of consumer, labor and civil rights groups yesterday lauded what they called tough new legislation to prohibit abusive and unfair credit card practices, introduced by Senate Banking Committee Chairman Chris Dodd. In a letter of support for the legislation , the groups noted that “as the U.S. economy tightens, financially vulnerable families need the protections of the Credit CARD Act more than ever.”   » Continue Reading

Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, yesterday introduced legislation to 'improve credit card billing, marketing, and disclosure practices.' According to Dodd, 'the Credit Card Accountability, Responsibility and Disclosure Act (the C.A.R.D. Act) is aimed at stopping credit card practices that drag consumers into staggering amount