Credit Card Overcharges » Banks

12 Cent Cap

admin — Thu, 16 Dec 2010 22:39:53 +0000

The Federal Reserve proposed a 12 cent cap on the fees banks would be allowed to charge merchants for debit card transactions, a move that could cut into the revenue for banks that issue debit cards.

Capping debit interchange fees, sometimes called swipe fees, would help merchants by replacing the current system, in which they generally pay between 1 percent and 2 percent of the dollar value of each transaction.

The Federal Reserved said consumers would not likely see a swipe fee cap translate into lower prices, except in some highly competitive markets. It may, however, result in banks cutting back on debit card reward programs or searching for other ways to offset the impact of lower fees.

Ways To Increase Credit Score

admin — Tue, 10 Aug 2010 14:17:37 +0000

Here are some ways that you can help increase your credit score:

1. Request a credit line increase. The one factor of your credit score you have the most control over is credit utilization. Credit utilization is simply a calculation of how much of your credit you are currently using. A simple total balance owed divided by total credit limit. So, you can either decrease the total balance owed or increase the total credit limit.

2. Pay off Debt. This is really a no brainer but the best option after you have already increase your credit card limit.

3. Charge Less. By keeping your statement balances lower, you lower your credit utilization without much effort.

4. Consolidate Credit Cards. If you have multiple credit cards with one issuer, consider consolidating them.

5. Review your credit report for errors and omissions.

These are the five easiest ways to help increase your credit score. I hope it helps.

Credit Card Cut Back

admin — Sun, 08 Aug 2010 20:09:13 +0000

Americans backed away from swiping their credit cards for the 21st straight month. Households are borrowing less and saving more, and that has dragged on the overall economy by lowering consumer spending.

Overall credit dropped 0.7 percent in June. It was the smallest decline since credit increased 1.8 percent in January, the only rise since the beginning of 2009. The decrease left consumer credit at an annual rate of $2.42 trillion.

Bank Closures

admin — Sun, 30 May 2010 23:58:36 +0000

Washington regulators announced that five banks were closed down on May 28, 2010. Three of the banks are in Florida, One in Nevada and one in California.

That brings the total US Bank failure number to 78 this year.

The Federal Deposit Insurance Corp. took over the Florida banks, all owned by holding company Bank of Florida Corp. They are Bank of Florida-Southeast, based in Fort Lauderdale, with $595.3 million in assets; Bank of Florida-Southwest, based in Naples, with $640.9 million in assets; and Bank of Florida-Tampa Bay, based in Tampa, with $245.2 million in assets.

The FDIC also seized Las Vegas-based Sun West Bank, with $360.7 million in assets, and Granite Community Bank, located in Granite Bay, Calif., with $102.9 million in assets.

The number of banks on the FDIC’s confidential “problem” list jumped to 775 in the first quarter from 702 three months earlier, even as the industry as a whole had its best quarter in two years.

The FDIC expects the cost of resolving failed banks to grow to about $100 billion over the next four years.