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Authors

Curtis Arnold
Curtis Arnold, Editor-in-Chief
Joe Taylor
Joe Taylor Jr., Reporter
Amber Stubbs
Amber Stubbs, Managing Editor

Credit Card Debt Debt Collection

  • As regulators target debt collectors, attorneys warn banks to rethink selling defaulted credit card debt

    One of America's top corporate law firms warned credit card issuers about potential consumer fallout from regulatory actions aimed at third-party debt collectors. According to a bulletin distributed by Ballard Spahr LLP, a series of communications from the Consumer Financial Protection Bureau signal a "major focus" on enforcing rules set forth in the Dodd-Frank Act. [...]

  • FICO survey shows banks ready to increase credit card limits in 2013

    More than half of American bankers expect consumers to request credit line increases during 2013, according to the results of a recent survey commissioned by FICO. The credit scoring company asked a panel of 251 bank risk managers to predict household credit trends over the next six months, and the results bode well for both [...]

  • Credit card limits increase, while balances drop in many major cities

    A pair of studies from a leading credit reporting agency shows that credit card use continues to stabilize, especially in parts of the country hit hardest by the recession. Equifax's recent National Consumer Credit Trends Report measured increases in auto loans, student loans, and new credit cards. Meanwhile, a study of regional credit card debt [...]

  • Credit card debt drops 28 percent

    Americans shaved nearly $200 billion from their bank credit card balances since 2009, according to figures released this month by credit reporting agency Equifax. The company's National Consumer Credit Trends Report tracked the 28 percent drop in credit card debt from a peak of $730 billion in January 2009. Meanwhile, the country's available bank card [...]

  • State AG bans credit card offers that revive expired debts

    An unusual series of credit card offers has started arriving in the mailboxes of Americans with past defaults and delinquencies, according to news reports. However, these offers of credit cards for bad credit scores come with an unexpected downside. Offered through partnerships between regional banks and debt collection agencies, these accounts require consumers to pay [...]

  • Credit card news suggests consumer debt could rise

    A trio of related credit card news items suggests that consumers could be setting themselves up for a new cycle of debt. While outstanding consumer debt has dropped, at least one card issuer is making it easier for card holders to increase their use of credit. Meanwhile, newly released data from the [...]

  • TransUnion: Credit card delinquencies hit 18-month low

    A recent TransUnion report reveals that credit card delinquency has continued to drop in the second quarter of 2011, marking what now amounts to a year and a half of falling delinquency rates. Although delinquency rates have been dropping for the past six quarters, the improvement in the second quarter of 2011 was still unexpected [...]

  • TransUnion: US credit card debt reaches 10-year low

    Consumers made $72 billion more in credit card payments than they did purchases in 2009, according to a new consumer study from TransUnion, one of the three major credit bureaus in the United States. According to this recent report, which tracked consumer debt patterns between the first quarter of 2009 and the first quarter of [...]

  • Credit card accounts up 35 percent since last year, says Equifax

    Credit card deals have helped banks bounce back with a 35-percent bump in new accounts compared to last year, according to a new report from Equifax. Researchers at the national consumer credit bureau released the July edition of their monthly Credit Trend Report, drawing on data compiled from the credit profiles of nearly 600 million [...]

  • Credit card debt down while overall debt up in April, per Fed

    Although U.S. credit card debt is well below its 2008 peak, the total amount of debt in America rose in April 2011. According to the latest report from the U.S. Federal Reserve on June 7, 2011, the figure is up $6.3 billion over March. The April figures for consumer credit show mixed trends: total debt [...]

  • Study: Credit card debt boosts self-esteem in young adults

    Contrary to what most people might assume, credit card debt and student loans don't make young adults more anxious about their finances. In fact, a new study shows that debt actually boosts young adults' self-esteem and makes them feel more in control of their lives. According to sociology research conducted at Ohio State University by assistant [...]

  • BBC: Credit card debts can be dismissed if issuer can't produce contract

    Several recent cases in the UK have highlighted the potential for cardholders to escape unscathed without paying their credit card debt, reports BBC News. Although the cardholders in question have admitted to accumulating the debt, card companies may not be able to collect their money if they are unable to produce the original loan agreement [...]

  • Study links financial well-being with lack of credit card debt

    Despite the trend among U.S. consumers to decrease their reliance on credit cards in the wake of the economic crash of 2008, a recent study shows many Americans are still dependent on plastic for daily expenses and are financially hampered by their credit card debt. In Understanding the Debt Difference, Demos, a New York City-based [...]

  • Small town residents have less credit card debt than city dwellers

    A recent Equifax survey shows that in debt-ridden America, people living in small towns have less credit card debt than residents of large cities. It's easy to speculate on why this is happening--lower real estate costs, fewer technological toys, and scarcer entertainment opportunities are all likely factors--but attitudes toward debt and spending may also account for [...]

  • Buyer beware: FTC bans marketing company from credit card debt relief industry

    A vendor claiming to eliminate consumer credit card debt has, itself, been eliminated from the debt relief industry by Federal Trade Commission investigators this month. According to an FTC statement dated Jan. 20, The Hermosa Group accepted a ban on offering debt relief services under terms of a settlement with the enforcement agency. FTC investigators [...]

  • 3 steps to handle holiday credit card debt

    Consumers have just started to grasp the reality of their holiday shopping sprees, according to the creators of the "Pay as You Settle" credit card debt resolution system. In a statement to reporters, officials from Prestige Financial Solutions cited the anxiety caused when Americans open up the first few credit card statements after year-end gift [...]

  • FTC shuts down credit card negotiation firm over illegal robocalls

    The Federal Trade Commission's crackdown on credit card fraud has reached into Canada. According to FTC officials, a federal district court in Chicago froze the assets of a company using robodialers to pitch consumers on a program to reduce their credit card interest rates. Investigators charge that the company pocketed almost $13 million in fees [...]

  • FTC asks for comments on debt collection from deceased Americans

    Federal Trade Commission officials asked the public for more comments on its proposal to change policies related to collecting debt from the estates of deceased Americans. The FTC first published its suggestions in early October, which include: Allowing debt collectors to contact attorneys, relatives, and other people potentially connected to the execution of an estate,Relaxing restrictions [...]

  • Seattle Residents Average Higher Debts with Larger Credit Scores

    Seattle narrowly edged out Dallas and Denver for a title it might not want: the American city with the highest average household debt. Statisticians at Experian stripped personally identifying data from millions of credit reports before feeding them into a new financial modeling tool. Experian's Premier Attributes system then ranked cities by the average household [...]

  • Credit Card Debt Settlement Companies Prepare for Coming Regulation

    Owners of debt settlement companies meeting at a Florida resort anticipate major changes to their industry, according to a recent profile in the New York Times. Writer Peter S. Goodman interviewed members of the United States Organizations for Bankruptcy Alternatives, a debt settlement trade organization whose own studies indicate that only about a third of [...]

  • Credit Card Debt Reduction Firms Face Asset Seizures

    Three credit card debt reduction companies have even more to fear in the wake of a Washington judge's latest ruling. U.S. District Judge Lonny Suko froze the assets of three telemarketing companies under investigation by the Federal Trade Commission. Already targeted by an FTC lawsuit and numerous complaints, the three companies allegedly used robo-dialers to pitch [...]

  • Credit Card Debt Settlement Company CEO Warns of Misleading Ads

    Frequent news reports about fraudulent or ineffective credit card debt settlement companies have provoked strong reaction from legitimate, professional debt negotiators. Consumers in significant credit card debt can choose to pursue debt reduction or settlement options on their own, or they can call upon experienced negotiators who understand how to reach fair deals. Some established debt settlement [...]

  • Lohan's $600,000 Credit Card Bill Resembles Americans' Battle with Debt

    The economic slowdown has forced many Americans into uncomfortable conversations with their credit card issuers about delinquent accounts. According to recent reports from TMZ, RadarOnline, and the New York Daily News, Lindsey Lohan has become one of them. One source told media outlets that the hard-partying actress has racked up over $600,000 in credit card debt, causing [...]

  • Credit Card Debt Settlement Fraud Cases Growing, Investigators Say

    As a Texas couple faces wire fraud charges for launching a phony debt settlement firm, residents in Maryland hope to recoup as much as $2.5 million in restitution after the closure of a larger debt settlement company. In both cases, phony debt counselors convinced their clients to deposit cash into special accounts that would be [...]

  • "Master Your Debt" Book Counsels Consumers in Crisis

    A sudden shift toward fiscal responsibility has Americans figuring out ways to get out of debt. The Federal Reserve has tracked double-digit percentage declines in monthly credit card spending over the past few quarters, while credit bureau Equifax reports that new credit card accounts have dropped by nearly half since 2008. Financial journalist Jordan Goodman outlines [...]

  • Credit Card Debt Reaches Record Levels for Pre-Retirement Americans

    Some Americans' reliance on credit cards to bridge budgetary gaps before retirement may have backfired, according to a new study. Data from the Employee Benefit Research Institute indicates that increased debt burdens on American families could postpone retirement for homeowners and cardholders that must find new sources of income. The nonpartisan research group's findings suggest that [...]

  • Minnesota AG Sues Companies Offering Credit Card Negotiations

    Minnesota Attorney General Lori Swanson warned her state's residents this month to avoid scam artists pretending to help consumers negotiate lower credit card interest rates. In some cases, companies posed as consumers' own credit card lenders and convinced victims that enrollment in a debt settlement program was mandatory. Swanson filed three lawsuits against fly-by-night operators, [...]

  • Credit Card Customers Get Debt Management Help from a Familiar Name

    Consumers looking to simplify their household debt can soon get help from a familiar name. When Bank of America launches its BankAmerica Basic product in October, the lender reconnects with the straightforward origins of the American credit card with an attractive set of features and benefits: Streamlined finance charges, with a consistent interest rate on all [...]

  • Credit Card Issuers Use Debt Management Tools to Lure Accounts

    Credit card companies that once looked for reasons to keep account balances high are reshaping their images as proponents of responsible money management. In a recent USA Today feature, author Kathy Chu documented some of the ways that credit card companies have shifted gears to help cardholders handle their finances more effectively: American Express promotes its charge cards [...]

  • Credit Card Debt Rising Faster for Seniors

    Few economists debated the results of a recent study by policy group Demos, indicating that Americans' household credit card debt rose by 3% over the past four years. However, financial analysts and regulators have jumped at reports from the same study that show credit card balances for low-and-middle income senior citizens soaring by 26% over the same period. Possible causes [...]