E-Commerce Blog

Credit card issuers must follow new rules of the road as of Monday, but consumers should not view the new protections as a cure-all for their frustrations with plastic. Instead, they should be ever more vigilant as credit issuers roll out new card agreements. They could result in new financial pain if card users aren’t careful. For instance, some credit card issuers have said they will aggressively market expensive over-limit protection as an invaluable feature of credit card accounts, said Josh Frank of the Center for Responsible Lending.

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Despite New Rules, Credit Card Users Cautioned to Be Wary

As financial institutions gear up for 2010, many companies are still on the long road to recovery after facing some of the most difficult challenges in years. Mortgage defaults and foreclosures, new regulations on credit card and bank fees, and the constant barrage of related news stories sent customer call volumes through the roof in 2009, as concerned consumers inquired about rates, terms, the threat of foreclosure and fees. Service representatives were asked to do more than ever, in less time.

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Transforming Financial CRM From Retention Mode to Growth Mode

It’s been nine months since I’ve written a check. That’s not to say I’m on some 12-step program to resist shopping. My credit card bills would suggest otherwise. Rather, when I opened a new bank account in March, I challenged myself to see how much I could use my bank’s online bill-payment service to stretch the 10 starter checks I got for free. Ordering a box of checks can cost $20 to $30, and in these tough times, every penny counts. I also save 44 cents in postage for most checks that go unwritten.

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Hello E-Billpay, Good Riddance Paper Checks

It’s no surprise that banks are pushing rewards cards given their popularity with consumers. The catch is that the cards being offered are now more likely to have annual fees. In the third quarter, 28 percent of rewards card offers came with annual fees, up from 21 percent in the same period last year, according to market research firm Synovate, which tracks credit card mailings to households. Just one month into the fourth quarter, 36 percent of rewards card offers had annual fees.

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Rewards Coming at Greater Costs for Credit Card Users

It’s no mistake. This credit card’s interest rate is 79.9 percent. The bloated APR is how First Premier Bank, a subprime credit card issuer, is skirting new regulations intended to curb abusive practices in the industry. It’s a strategy other subprime card issuers could start adopting to get around the new rules. Typically, the First Premier card comes with a minimum of $256 in fees in the first year for a credit line of $250. Starting in February, however, a new law will cap such fees at 25 percent of a card’s credit line.

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Bank’s New Credit Card Terms: $75 Annual Fee Plus 79.9 Percent APR