Recently released figures have shown that whilst credit card fraud in the UK has been going down, which will come as a relief to the many cardholders that have been fearful about becoming victims of this sort of crime, the level of online banking fraud has been increasing.

The reports have come from the group Financial Fraud Action, and have shown the trends in fraudulent activity in the UK.

Plastic card fraud has become a growing problem for consumes in the UK over recent years, and whilst CHIP and PIN technology has gone some way towards protecting consumers fraudsters have found other ways to conduct their criminal activity, such as focussing on Card Not Present transactions where the credit card itself is not required to make a purchase.

Read all post…

Many consumers and retailers think it is time for a revolution in the credit card industry.  Tired of banks increasing fees and the constant threat of identity theft, many American consumers are looking for options to the traditional credit card products from Visa, MasterCard, and American Express.   One stand out alternative seems to be the RevolutionCard.  The card offers many benefits that traditional credit cards do not. The RevolutionCard is a credit card offered by RevolutionMoney, a company that is part of Revolution LLC.  The company was founded in 2005 by Steve Chase who also founded America Online.  As the popularity of the RevolutionCard grows, more bank issuers are being attracted to it.  First Bank and Trust in Brooking South Dakota has been an issuer, but recently Fifth Third Bank signed on as another issuing bank, giving Revolution Money one of its largest opportunities to date to grow and expand its brand. 

RevolutionCard is the first personal identification number (PIN) based card on the market. It is al

Read all post…

As of November 1, the Financial Services Authority (FSA) took over regulation of the way banks and building societies do business with their customers. Previously the job was done by the Banking Code Standards Board. Rules governing the administration of accounts and transactions such as debit and credit card payments have changed as a result of the new regime – and we all need to be aware of them.

The FSA says that anyone with a bank account or debit, credit or prepaid card, will be affected by the change.

So how is your relationship with your bank, building society or card provider going to change due to the FSA taking over banking regulation?

Read all post…

A recent report has highlighted the ever growing gap between mortgage borrowers that have a large deposit to put down compared to those that have only a 10 percent deposit.

Over the past eighteen months lenders have been demanding higher and higher deposits from consumers in order to access their most competitive rates, and although the base interest rate is still at its record low of just 0.5 percent, many people lower deposit levels are paying far more for their mortgage borrowing than those that have substantial deposits.

Figures have shown that those able to raise a huge deposit of around 40 percent of the property value can enjoy highly competitive rates of around 2.5 percent on their mortgage borrowing.

However, those with only a 10 percent deposit, which often means first time buyers with no previous property from which to take equity, will often pay at least twice as much as this in terms of interest rate, and very often much more than that.

One industry official said that this, amongst other things, could end up stifling demand for housing, particularly amongst first time buyers.

Read all post…

Credit unions up until recently have not been a first choice of credit card services for many consumers.  Credit unions, however, just might be the alternative to traditional credit card lenders that many consumers are looking for.  The pending changes to credit card regulations have put both borrowers and lenders on notice.  Both parties are preparing for the legislative changes coming down the pike in early 2010.  Most major credit card issuers have been raising interest rates, jacking up fees and cutting or freezing credit lines for many of their cardholders.  The changes to the Truth in Lending Act, however, do not appear to offer much relief now or in the future to the gridlock between borrowers and lenders. 

Borrowers who are currently struggling to reduce credit card debt or have made a way of life by relying on credit are now facing the triple threat of increased fees, more hidden costs and lowered borrowing limits. Undoubtedly, consumers have overborrowed and have allowed rampant consumerism to become their very way of life. These i

Read all post…

The stereotypical image of the American consumer portrayed by the media is that of a family with a jumbo mortgage and drowning in consumer debt.  But is that the reality?  Americans certainly devote a far larger percentage of their income to mortgage payments than is wise, but the average credit card debt in America isn’t quite as bad as they make it out to be, at least not from my perspective.

The Average Credit Card Debt In America

At the end of 2008, the average credit card debt in America per household, regardless of whether or not they actually held a credit card, was $8,329.  Obviously, since not every household has a credit card, this average is less than useful.  The average credit card debt in America of households actually possessing a credit card was significantly higher:  $10,679, up from $10,637 the year before.

Here are some more credit card facts I found interesting and that really drive home our addiction to credit:

• Total outstanding credit card debt owed by Americans was $972.73 billion in 2008, up 1.2% from the 2007 total.
• Average balance per open card was $1,157.  Remember that many households own more than one card (I have three, unfortunately).
• 13.9% of our disposable income went to pay consumer debt.
• 73% of American households possess at least one credit card.
• Anchorage, Alaska has the highest average credit card debt in America per household.  Lincoln, Nebraska has the lowest.

Are Current Credit Card Debt Levels Worrisome?

The actual amount of the average credit card debt in America doesn’t worry me.  While $10,679 is a lot of money, it’s not an obscene amount.  What worries me more is the fact that 13.9% of America’s disposable income goes directly to the credit card companies’ top lines.  With the average credit card rate hovering around the 15% mark, it takes a surprisingly little amount of accumulated debt to start generating sizable monthly debt obligations.

With consumers already facing reduced incomes and greater uncertainty due to the recent recession, it’s hard to imagine us being able to afford to spend our way out of this mess.  Certainly not if we are spending almost 15% of our disposable income paying for stuff we’ve already bought.  At the end of the day, just how much will be available for future purchases?  Not much, I’d wager.

Source:  Credit Card Statistics, Industry Facts, Debt Statistics