Major retailer and grocer, Target, announced that it would sell its credit card portfolio to TD Bank. As part of the agreement, Target customers would retain their right to a 5% discount when using the company's card at the company's stores, however, the financing would be provided by TD Bank, not by Target Corp.
The two companies agreed to a seven-year partnership that would allow for TD Bank to underwrite, fund, and own all the future cash flows from Target cards. Under terms of the deal,...
According to a new study from Equifax, credit card credit lines are rising higher and higher as consumers use less and less of their available credit. This year, American credit card accounts have topped 300 million - indicating that consumers are opening new lines but may not be using them to their fullest extent. The number of credit cards outstanding is at a 28-month high.
The study, known as the Consumer Trends Report, finds that Americans are using only 22 percent of their available...
The largest anti-trust settlement may be approved by one Brooklyn judge. Over the summer, retailers finished complaints against credit card companies for merchant fees, ultimately agreeing to a deal that would push down credit card merchant fees and allow retailers to pass on fees to consumers.
The results of the settlement may mean that credit card users pay more for every day products than people who do not use their credit cards. Some industry analysts suggest that stores are unlikely to...
An unlikely duo, Walmart and American Express have announced a partnership to launch a new prepaid card service. The agreement brings a new product called Bluebird to market.
Walmart and American Express have announced the service as part of some kind of joint venture. The Bluebird card will tap into American Express' vast payment network, and have features that are generally considered to be high-end including American Express customer service, roadside assistance, and mobile banking...
MasterCard, the largest global payment network, is under scrutiny for a data digging project that raises some concerns about privacy. The company was said to have launched a new business whereby it uses consumer data to determine more about their users. This information is then sold to third parties for advertising and marketing campaigns.
The privacy concerns may be unwarranted, however. MasterCard data does not reveal who makes the purchases, nor does it include the names or addresses of...
Earlier in the year the London Interbank Offering Rate, or the rate at which banks lend to other banks, was found to be a faulty measure of the actual cost of borrowing. By soliciting responses from only a few banks, many of which simply estimated or marked up or down their actual borrowing costs, LIBOR was found to vary wildly from the real cost of borrowing.
This led to an international investigation that is on-going. Proposals to alter the calculation of LIBOR may greatly reduce the...
A credit card allows you to buy now and pay later, but a credit card offers even better benefits for holiday shoppers. Here are a few tips and tricks to using a credit card this holiday season:
1. Use just one credit card – Using one credit card will help you record all of your holiday shopping on just one credit card statement. More importantly, should you ever need to make a return, you will be able to know exactly how you paid for the gift. Many retailers only accept returns with a...
Americans once again increased their credit card balances in August, adding $4.2 billion to their balances from July, according to the Federal Reserve. The August rebound comes along several other financial improvements.
In September, unemployment fell below 8 percent to rest at 7.8 percent. Also, rising stock prices and asset valuations sent American net worth back to a pre-recessionary high. Americans now have a household net worth of $62.7 trillion.
The rise in credit card debt follows...
The newly-created Consumer Financial Protection Bureau is making another headline. This week, the CFPB announced a settlement with American Express over the company's marketing practices.
American Express admitted to no wrongdoing, but it will pay fines of $112.5 million for credit card practices going back to 2003. The company will reimburse some $85 million to 250,000 customers. A week earlier, the CFPB struck a settlement with Discover, and a month ago it settled with Capital...
Banks are stocking up on cash in a move that may soon put more credit cards, car loans, and consumer loans in the hands of consumers. The market for asset-backed securities is stronger than ever, suggesting that credit card rates may be headed lower, and rewards may be getting even juicier.
Barclays, one of the largest banks in the world by assets, reports that the market for asset-backed securities is so strong that banks are selling their credit card assets with rates only .42% higher than...
Credit card companies are refusing to move the needle on credit card interest rates. This week, a credit card survey revealed that the average credit card available on American shores carried a 15% interest rate, no change from previous surveys.
In the last six months, most credit card categories have experienced declines in the interest rate charged to balances. Student card rates have fallen more than half a percent while a select few rewards cards pushed up the average only slightly by...
Economists now expect consumer spending to rise significantly in 2013 propelled by a rebound in consumer borrowing. The high water mark is 3.5% economic growth on the back of a recharged consumer who has repaid debt and is ready to spend once more.
Prior to the recession, the average consumer carried debt equal to the entire gross domestic product of the United States. To put this in plain language, Americans had in debt what the entire country produces in goods and services each year. Now,...