Leading Payment Card Research Firm Adds CardQue and Diamond+ Services

NAPLES, Fla., Sep 10, 2008 (BUSINESS WIRE) -- CardWeb.com(R), the leading provider of news, data, and research services to credit card, debit card and payment card executives worldwide since 1986, today announced the addition of a new comprehensive "Diamond+" level of service including CardQue(TM).

CardWeb.com(R) pioneered the first daily news service for the payment card industry in 1995 when the Company launched its Web site. The new CardQue(TM) service will offer CardWeb.com(R)'s top clients instant online access to breaking raw news and fresh proprietary data before it appears in the widely distributed daily CardFlash(R) and CardFlash International(R) publications.

CardWeb.com(R) also announced a new "Diamond+" service that includes single, company wide custom password access to CardFlash(R), CardFlash International(R), CardData(R), CardWatch(R), CardExecs(TM), CardPixes(TM), and CardQue(TM) plus free inclusion in CardResource(TM), a 40% discount on special research projects, site advertising and private consulting as well as deeply discounted or complimentary access to payment card industry events via CardConferences(TM).

CardWeb.com(R) services include: CardFlash(R) (daily payment card news with more than 36,000 documents posted since 1995); CardFlash International(R) (weekly international payment card news with more than an 8,000 document archive); CardData(R) (monthly and quarterly payment card industry financial surveillance with more than 100,000 data points); CardWatch(R) (payment card marketing intelligence with more than 10,000 documents and exhibits); CardExecs(TM) (individual movers and shakers of the payment card industry with nearly 2,000 bios); CardPixes(TM) (payment card form and function with more than 4,000 product pictures and descriptions); CardResource(TM) (payment card vendor network of hundreds of top providers); CardConferences(TM) (calendar of dozens of payment card events) and CardQue(TM) (breaking news and data).

Robert McKinley, founder and chief executive of CardWeb.com(R) notes that Visa(R), MasterCard(R), American Express(R), and Discover(R) are now publicly-traded companies, helping to dissipate the fog surrounding the payment card industry. McKinley says his firm has long cut through the clutter and misinformation, providing an "edge" to thousands of financial institutions worldwide with the best intelligence and proprietary surveillance on competitors. "We are entering a new age of competition in the payment services business wherein consumers can pay with any device, not just cards," says McKinley "and CardWeb.com(R) services, which have never been replicated in more than 20 years, are poised to take clients to this advanced playing field with a 360 degree view of the New Payments World."

CardWeb.com(R), also announced special anniversary offers to new and existing subscribers including a 5% discount to all clients using a credit card, debit card or wire payment through October 15th. Additionally, purchasers of single user subscriptions to CardFlash(R) can add a second user for only $1 through October 31st.

source : http://www.google.com/news?

Have you got cash in your attic?

More and more people are using pawnbrokers as the credit crunch continues to bite. Maybe it is time to search the house for forgotten valuables? Sarah O Meara reports.

With the highest level of credit card debt in Europe, Britons are notoriously naughty spenders. Despite earning less money each year than we owe, as a nation we still love to spend.

While our love of high street shopping was fine while prices were low – and the words credit crunch only applied to money-themed breakfast cereals – now the bills are mounting up. Is is time to cut up the cards and start raiding the attic for things to sell?

Antique dealer Michael Hogben, former presenter of Channel 4's Name Your Price, says "you normally have to go back to Granny's assets" to make money from your home.

"Anything from jewellery to furniture, which is dated pre-1930s, becomes collectible and is almost guaranteed to make some money," he says.

Admittedly, many of us would probably prefer pay the average 18.9 per cent credit card interest than flog great-aunt Matilda's favourite chair. But in these times of looming recession, it might be time to put such emotional attachments aside and find our inner Del Boys.

One industry already taking advantage of our need to make instant cash is pawnbroking.

There are more than 800 pawnbrokers already operating in the UK and this number is increasing by 10 per cent each year.

John Nichols, chief executive of pawnbroking firm Harvey & Thompson, says letting go of a few things in the short term is a sound option.

"If you can't get a bank loan, have huge sums on credit cards and have got to the end of your overdraft, pawn-broking is a short-term good fix. There are no late payment penalties, no administration charges, just 8 per cent a month interest.

And you'll avoid the charges from an unauthorised overdraft or gaining more interest on your credit card."

With so many ways to make money from your home, it would seem a shame not to take advantage.

Research from T-Mobile revealed last month that Brits spend over a year of our lives hunting for the best deals. So despite our ability to accumulate debt, it would also seem we're also great at spotting a good deal.

Nichols and Hogben both agree that whether you're planning to hock or flog that crystal necklace, knowing the material value of your goods can be an enormous help.

"This is the biggest mistake that people make and they've been making it since way before the credit crunch – overvaluing their antiques," Hog-ben says. "If you're looking to sell then it's always worth going online to do a quick search to see what similar pieces are worth.

But I wouldn't use eBay as a reference; there are no experts, just the public's opinion. Go to one of the London sale rooms websites and look at their sales. If you're uncomfortable online, head to the library.

source : http://www.halifaxcourier.co.uk

Gemalto Acquires Multos Business From Keycorp

AMSTERDAM, Netherlands, Sep 01, 2008 (BUSINESS WIRE) -- Regulatory News:

Gemalto (Euronext NL0000400653 - GTO), the world leader in digital security, today confirmed that it has completed the acquisition of Keycorp's smart card business, the leading fabless provider of MULTOS(TM) products and services to the Financial Services and Government sectors, and of Multos Ltd, the company that operates the remote activation service and high-security facility that is at the center of the MULTOS security architecture. Gemalto is paying 25.7 million Australian dollars (approximately 15 million Euros, or 22 million US dollars) for Keycorp's smartcard business assets, IP portfolio, trademarks and Multos Ltd.

The assets acquired include Keycorp's implementation of the highly secure MULTOS smart card operating system, the MULTOS brand, the associated patents and the Key Management Authority (KMA) that manages MULTOS card activations worldwide. Approximately 40 MULTOS experts will join Gemalto, mostly based in Australia and UK. The acquisition will contribute over 15 million of annual revenues to the Secure Transactions and Government Programs segments of Gemalto on an annual basis, with over half of the revenues coming from Asia.

MULTOS was previously owned by Mastercard Worldwide through Mondex, and is promoted by the Maosco consortium, which includes Infineon, Samsung, Dai Nippon Printing and Thales in its membership. MULTOS was the first smartcard operating system to receive the highest security certification possible, ITSEC E6 High / EAL6+.

"We will continue to develop and actively promote MULTOS in the payment and ID world" commented Philippe Cambriel, Executive Vice President for Secure Transactions. "In particular, for the high-end and multi-application segments of EMV payment cards, MULTOS fully complements our Java product and services range to provide a comprehensive portfolio. It extends our base of blue chip banking customers, and also brings a highly recognized secure post-issuance service for banking applications, with proven efficiency, scalability and value".

Olivier Piou, Gemalto Chief Executive Officer, added: "This important bolt-on acquisition reinforces our software and services offering across Gemalto business lines. It will allow Gemalto to leverage its large installed base of intelligent devices with a commercially-demonstrated highest-security post-issuance activation service, which will be critical for example in mobile payment and NFC (Near Field Communication) applications. The timing is also right: the turn-around of Secure Transactions has been successfully completed, the segment posted strong results in the first half 2008, and it is now operating on strong foundations, ready to pursue the next opportunities."

About Keycorp

Keycorp is a leading provider of complete secure electronic transaction solutions from multipurpose smartcards and payment solutions to fleet services comprising asset management, help desk support, training and consulting.

source : http://www.google.com/news?

Be Prepared for Arguments and Snooping When Sharing Credit Card Accounts

AUSTIN, Texas, Aug 27, 2008 (BUSINESS WIRE) -- Nearly one in five people who share credit card accounts say use of the accounts has sparked arguments with the other person, according to a new . The amount of personal conflict greatly increases when shared account holders are dissatisfied with their current credit card.

The findings are from the Second Annual Taking Charge survey, which investigates America's relationship with credit cards. The national study was fielded by GfK Roper Public Affairs & Media for the leading online credit card marketplace and consumer information source.

"Sharing a credit card account can be risky if the other person is irresponsible in their spending. Our survey shows there is some concern about this practice and how it affects relationships," said Ben Woolsey, Director of Marketing and Consumer Research for "Whether it's your children or your spouse or partner, you should really be careful about sharing a credit card account.

"Results also show that people's perception of having the right credit card for their needs makes a difference in their happiness," Woolsey added. "Americans sensing a disconnect between themselves and their credit card typically double their likelihood of experiencing relationship discord on shared credit card accounts."

The Taking Charge survey also finds:

-- More than half (51 percent) of cardholders have shared a credit card account, mostly with a spouse or partner (91 percent) and some with a child or adult child (21 percent).

-- Sharing an account makes 9 percent of the shared account holders feel closer to the other person.

-- Nearly one-fifth of shared account holders have used printed statements to check on the other person's spending; and nearly one-sixth (15 percent) have checked statements online.

-- Nearly one in five (17 percent) of shared account holders said they were concerned that their own credit scores would be negatively affected by the other person's use of the account.

-- A few shared account holders (7 percent) have canceled credit cards because they caused conflict in their relationships.

In addition, the poll shows the value of shopping around for a card that matches your needs. People sensing a misfit between themselves and their credit card are:

-- Twice as likely to have argued with their spouse, partner or child about their shared account (31 percent versus 16 percent).

source : http://www.google.com/news?

Citigroup Loses on Credit-Card Securitizations as Payments Lag

Aug. 4 (Bloomberg) -- Citigroup Inc. reported its first loss since at least 2005 on credit-card securitizations, signaling that risks may be growing in a business that generated $3.5 billion of revenue in the past three years.

The biggest U.S. credit-card lender lost $176 million in the second quarter packaging card loans into securities, the company said in an Aug. 1 regulatory filing. The New York-based bank completed fewer deals and was forced to mark down its own $9 billion stockpile of the debt instruments and other stakes the company amassed while selling them to investors.

Led by Chief Executive Officer Vikram Pandit, Citigroup manages about $202 billion of credit-card loans worldwide, about $111 billion of which have been turned into securities and sold, according to the filing. Delinquencies on the securitized portion have jumped by 16 percent since the end of last year to $2.16 billion as of June 30, Citigroup said. The firm's results may portend similar losses for rivals.

Banks and other card issuers ``are predicting higher net charge-off rates across the credit-card industry,'' said Meghan Crowe, a Fitch Ratings analyst who tracks credit-card issuers including American Express Co., Capital One Financial Corp. and Advanta Corp. ``Things have been worse than anticipated.''

Citigroup spokeswoman Shannon Bell declined to comment.

Job losses and higher food and gasoline prices have squeezed consumers, causing more of them to fall behind on bills and damping a market for credit-card debt that has so far withstood the collapse of the mortgage-backed securities industry. Wachovia Corp. analyst Glenn Schultz predicted in a July 18 report that loan charge-offs by credit-card securitization trusts industrywide may climb to 7 percent in coming months from 5.6 percent currently.

source : http://www.bloomberg.com/

Revention Takes the Lead on Credit Card Security Standards

HOUSTON, July 23, 2008 /PRNewswire via COMTEX/ ----Revention (http://www.revention.com), a leading provider of advanced restaurant management solutions, is pursuing the highest level of credit card compliance based on the recently released Payment Card Industry Data Security Standard. PCI Standards list was developed by all major credit card issuers, and includes best practices for stored, processed, or transmitted credit card data. Recent security breaches at many POS companies prove that Revention is miles ahead of its competition as it emerges to pursue more secure credit card data processes in order to protect its customer base.

Revention CEO Jeff Doyle says, "Protecting our customers' data is one of our highest priorities. As point-of-sale security breaches become increasingly common among retailers, it is imperative that all POS providers carefully examine their existing data protection procedures for vulnerabilities. Our goal is to be proactive rather than reactive, and as a result, we are working diligently to provide our customers with the most advanced cardholder data protection available."

To ensure that customer credit card data is protected, Revention has implemented new operational and application securities designed to satisfy PCI cardholder data protection procedures: build and maintain a secure network, protect cardholder data, maintain a vulnerability management program, implement strong access control measures, regularly monitor and test networks, and maintain an information security policy.

About Revention, Inc.

Revention, Inc. is a leading developer of complete, customizable restaurant management solutions designed to streamline the way restaurants do business. Revention's experienced professionals are dedicated to assisting customers both before and after the sale, providing a complete solution that includes customized installation, training, technical support, and much, much more.

source :http://www.google.com/news?

Capital One Falls as Profit Misses Analyst Estimates (Update1)

July 18 (Bloomberg) -- Capital One Financial Corp., the credit-card lender that expects as much as $7 billion in soured loans in the next 12 months, fell 3.5 percent in New York trading after missing analysts' second-quarter profit estimates.

Profit from continuing operations fell to $1.24 a share as more borrowers defaulted on loans, the McLean, Virginia-based company said yesterday, missing by 8 cents the average estimate of 16 analysts surveyed by Bloomberg.

Capital One, American Express Co. and Discover Financial Services shares have dropped by more than a third in the past year amid concern the lenders underestimated the depth of the U.S. slowdown. Delinquent credit-card accounts rose more than 100 basis points from a year earlier to 3.99 percent in May, according to Bloomberg data. The U.S. lost 62,000 jobs in June, the sixth straight month of shrinking payrolls.

``Losses will continue to intensify in all lending segments in the coming months,'' Scott Valentin, analyst at Friedman Billings Ramsey & Co., who has an ``underperform'' rating on Capital One, said today in a research note about the lender.

Capital One declined $1.50 to $41.30 in New York Stock Exchange Composite trading at 9:34 a.m. The lender has slumped 46 percent in the past year.

Capital One set aside $1.6 billion for failed loans and to build reserves in the second quarter. The reserves could absorb about $7 billion in loan losses in the 12 months leading to June 30, 2009, the company said yesterday in a slide presentation. Capital One said April 17 it expected $6.7 billion of loan losses in the year through March 2009.

Borrower Defaults

Profit in Capital One's U.S. card unit fell 43 percent from a year earlier to $340.4 million as loan defaults rose to 6.26 percent from 3.56 percent a year earlier. The company said it expects a default rate in the ``low six percent range'' in the third quarter, rising to about 7 percent in the fourth quarter.

The company's second-quarter net income fell 40 percent to $452.9 million, or $1.21 a share, from $750.4 million, or $1.89 a year earlier.

New York-based American Express, the largest credit-card company by purchases, said June 25 that credit indicators during that month worsened beyond the expectations of CEO Kenneth Chenault. The lender will report second-quarter results July 21.

source : http://www.bloomberg.com/

Consumer Warning Network Report: FSU Profits Off of Student Credit Card Debt

TAMPA, Fla., July 10, 2008 /PRNewswire via COMTEX/ ----The Consumer Warning Network has just released a report exposing secret details of a marketing agreement between Florida State University and credit card giant Bank of America.

At the same time Florida State University is warning students in a slick video to avoid the "credit card monster," the university is funneling their names and addresses to credit card giant Bank of America. The bank then uses that information to market credit cards to those very same students, as part of an "exclusive" deal allowing the bank to use FSU's official colors and symbols.

Consumer Warning Network has obtained a copy of the contract between the Seminole Boosters, FSU's athletic fundraising arm, and Bank of America. The deal, which FSU endorsed in a side letter, was supposed to remain confidential.

Under the secret terms of the agreement, FSU pockets a piece of every dollar charged by students and alumni under the program, with a guarantee of more than $10 million over 7 years. That money goes directly to the private Seminole Boosters, FSU's athletic fundraising arm, which among other things helps pay the multi-million dollar salaries of coaches like Bobby Bowden.

The card marketed to students by Bank of America has less favorable terms, like higher interest rates, than its non-student credit cards.

Students on campus were troubled by their school's role in the deal. "It's like they're setting us up for failure," said Yari Alpizar, a freshman from Marathon, Florida. "I don't think they should be allowed to do this. It's an invasion of privacy."

FSU is not alone. Bank of America has acknowledged it has arrangements similar to the one with FSU with more than 900 participating schools and colleges. Congress and some State Attorneys General are investigating these relationships between credit card companies and Universities.

To read the entire report and review the supporting information visit: www.consumerwarningnetwork.com . The Consumer Warning Network is website launched by a team of former Federal Prosecutors, Investigative Journalists and former FBI Agents working together to expose fraud and educate the public on consumer issues.

source : http://www.google.com/news?

Money: Card-inal Rules

Debit or credit? The answer is in: shoppers love their debit cards and use them more often than any other form of payment. Sure, they are convenient. But if you're going to use your debit card regularly, do it right.

• Get something for it. Only about half of the banks that issue debit cards offer credit-card-type rewards programs, according to a survey, so make sure yours is one of them. And learn how to get with the program. Citi-bank, for example, offers higher rewards for customers who use the card with a signature than for those who use a PIN (merchants pay issuers less for PIN transactions).
• Protect it. Things can get ugly when a debit card gets stolen, because a thief can use your card like a credit card (a PIN isn't usually required), but the money comes directly out of your checking account. So an impostor with your card can clean out your checking account before you know your wallet is missing. Then those rent and utility checks start to bounce. That's worse than if your credit card is stolen, because you can dispute fake credit charges before they affect your other bills and bank accounts. Most banks promise to make you whole again, but the time spent calling and explaining your predicament to landlords and electricity companies can be miserable. Sign your card and keep it separate from your credit-card wallet. Don't use your account number at in-secure Web sites or loan it to friends, and watch your transactions closely.
• Keep track of what you've got. Most banks are happy to let you use your debit card to overdraw your checking account and then charge overdraft fees as high as $30 for each transaction. So keep a close eye on your bank balances.

source : http://www.newsweek.com/id/34909

Suspect caught using stolen credit card

DENVER - One of the final spring skiing days of 2008 turned stormy when a Denver-area victim realized their wallet was gone.

A man was spotted using credit cards stolen from that wallet at Jersey Liquors, located at 928 Jersey Street in Denver, on April 7. The whole incident was caught on surveillance video.

Denver Police say the credit cards were used in at least one other location before they could be cancelled.

If you know the man in this surveillance picture, call Crime Stoppers at 720-913-STOP (7867). If your information leads to the suspect's arrest you could be eligible for a cash reward.

(Copyright KUSA*TV, All Rights Reserved

source : http://www.9news.com/news/local/article.aspx?storyid=94244&catid=346

Manage credit to maximize property buying power

The single best action item you can take to improve your buying power is to improve your credit score, according to mortgage planning specialist Robert Callaway of Venture Callaway Mortgage and Realty, an affiliate of the Silicon Valley Association of Realtors. He recently described ways to help home buyers manage credit scores in order to maximize buying power.

As a consequence of the subprime meltdown, lenders have become more conservative about loaning money, underwriting standards have become stricter and credit card companies have started raising interest rates, so improving your credit score has become very important today, Callaway said.

"The better your client's credit, the more chances they have of receiving a lower interest rate on mortgages, car loans and credit cards," Callaway said.

FICO scores range from 300 to 850. If your FICO score is between 350 and 539, Callaway said lenders would shake your hand and say, "Nice talking with you," and send you on your way. Now, because of the subprime meltdown, if your credit score is between 540 and 619, lenders would also say, "Nice talking to you." Callaway categorized the FICO score range between 620 and 699 as a move toward an A; 700-739 is an A; and between 740 and 850 is an A+.

He indicated only 40 percent of the surveyed population ranks above 750, with18 percent ranking between 700 and 749, 27 percent between 750 and 799 and 13 percent ranking 800 and over.

Types of credit you use: Apply only for credit you really need.

Callaway said the hierarchy of credit is asfollows, with mortgage loans first, followed by auto and student loans, bank credit cards next and store credit cards last.

Each new account can put a dent on your credit score. "How often you apply for credit must be miserly. Don't fall for the department store offers of a 10 percent discount or the free beach towel for signing up for a new card," Callaway said.

Callaway said the ideal would be a mortgage loan, a car installment loan and an average of three to six credit cards.

• Payment history: Pay your bills on time.

Payment history is the single most important factor in determining your credit score, and comprises 35 percent of the total score. Making on-time payments is the best way to start rebuilding your credit rating.

• Amounts you owe: Pay down your debts.

"The amount of credit has a minimal effect, but the amount of debt you carry weighs heavy," Callaway said.

"Realtors should ask their clients if they are planning on a big purchase soon and advise them against it," he recommended. "A large purchase right before applying for a mortgage could test the limits of their credit."

While it's financially smart to pay off your balances each month, it's the balance to limit ratio that matters. Big balances can hurt your score, even if you pay your bill in full each month. The balance reported on your last statement is what's calculated into your score. Limit your charges to 30 percent or less of a card's limit--10 percent is optimal, he advised. The less of your credit lines you use, the better your credit score will be.

• Age of credit: Don't close old accounts.

source : http://www.google.com/news?

Manage credit to maximize property buying power

The single best action item you can take to improve your buying power is to improve your credit score, according to mortgage planning specialist Robert Callaway of Venture Callaway Mortgage and Realty, an affiliate of the Silicon Valley Association of Realtors. He recently described ways to help home buyers manage credit scores in order to maximize buying power.

As a consequence of the subprime meltdown, lenders have become more conservative about loaning money, underwriting standards have become stricter and credit card companies have started raising interest rates, so improving your credit score has become very important today, Callaway said.

"The better your client's credit, the more chances they have of receiving a lower interest rate on mortgages, car loans and credit cards," Callaway said.

FICO scores range from 300 to 850. If your FICO score is between 350 and 539, Callaway said lenders would shake your hand and say, "Nice talking with you," and send you on your way. Now, because of the subprime meltdown, if your credit score is between 540 and 619, lenders would also say, "Nice talking to you." Callaway categorized the FICO score range between 620 and 699 as a move toward an A; 700-739 is an A; and between 740 and 850 is an A+.

He indicated only 40 percent of the surveyed population ranks above 750, with18 percent ranking between 700 and 749, 27 percent between 750 and 799 and 13 percent ranking 800 and over.

Types of credit you use: Apply only for credit you really need.

Callaway said the hierarchy of credit is asfollows, with mortgage loans first, followed by auto and student loans, bank credit cards next and store credit cards last.

Each new account can put a dent on your credit score. "How often you apply for credit must be miserly. Don't fall for the department store offers of a 10 percent discount or the free beach towel for signing up for a new card," Callaway said.

Callaway said the ideal would be a mortgage loan, a car installment loan and an average of three to six credit cards.

• Payment history: Pay your bills on time.

Payment history is the single most important factor in determining your credit score, and comprises 35 percent of the total score. Making on-time payments is the best way to start rebuilding your credit rating.

• Amounts you owe: Pay down your debts.

"The amount of credit has a minimal effect, but the amount of debt you carry weighs heavy," Callaway said.

"Realtors should ask their clients if they are planning on a big purchase soon and advise them against it," he recommended. "A large purchase right before applying for a mortgage could test the limits of their credit."

While it's financially smart to pay off your balances each month, it's the balance to limit ratio that matters. Big balances can hurt your score, even if you pay your bill in full each month. The balance reported on your last statement is what's calculated into your score. Limit your charges to 30 percent or less of a card's limit--10 percent is optimal, he advised. The less of your credit lines you use, the better your credit score will be.

• Age of credit: Don't close old accounts.

source : http://www.google.com/news?

Federal Credit Cards Accountability - Feds Gone Wild

Washington, DC - Recent media reports regarding the abuse of government credit cards, prompted by the release of a Senate report on Monday, April 7, shines a fresh light on a problem.

Over the years, purchase card holders have bought Atlanta Braves tickets, Victoria 's Secret merchandise, jewelry, cell phones, tires, escort services, and in one instance, we found an inventive federal employee who purchased breast enhancement surgery for his girlfriend.

The following are some of Project on Government Oversight's (POGO) previous recommendations for addressing purchase card abuses.

* Congress should require additional guidance to improve the management of the government’s purchase card program.

* The government should consistently implement purchase card program internal controls.

* Purchase cards should only be issued to individuals who have a documented need to acquire items for the government.

* Purchase card accounts should be conditional on cardholders receiving training on the program’s key internal controls, which should reduce fraudulent and abusive purchases.

* No cardholder should be their own authorizing official.

* Agencies should confirm that approving officials review cardholder support and certify monthly statements.

news source : http://www.imperialvalleynews.com/

Charges after credit cards stolen, used

A 26-year-old Lindsay woman faces charges after police said credit cards from a stolen purse were used in town.

A purse was stolen from a William Street tavern and the credit cards used at a nearby convenience store a short time later on April 13, said City of Kawartha Lakes Police Service.

On Saturday, a second victim reported her purse stolen from the same location, police said.

Like in the first incident, credit cards in the purse were used a short time later.

Later that same morning, police said officers located a suspect on Kent Street West and made an arrest.

Marcie Perry, who was charged with two counts of theft under $5,000, two counts each of possession of stolen property, using a stolen credit card and forgery and a single count of breach of probation, appeared in Lindsay court Monday for a bail hearing.

news source : http://www.thepost.ca/ArticleDisplay.aspx?e=995534

Police Those Credit Cards

The recent instances of credit card companies raising interest rates without apparent reason and then offering cardholders a tiny window within which to repay at the old rate are a perfect example of why disclosure is a flawed paradigm for consumer protection.

For more than 50 years, we have assumed if consumers were made aware of their loan terms (however onerous and convoluted), they could make informed decisions. Disclosure was a way of saying: Caveat emptor.

But disclosure alone is inadequate, especially in cases where responsible cardholders unexpectedly have their rates raised significantly—going, for example, from 11% to 24% annually. We erroneously assume consumers read, understand, and act on the explanation of credit card terms they receive. Many consumers, even those who read what they receive, do not fully understand the disclosures, which are often in small print or legalese. In addition, what drives consumer decision-making is not always rational choice: Mood, emotion, and fiscal reality influence choice. That is precisely why we have federally mandated cooling-off periods for door to door sales.

We must look beyond disclosure for consumer protection. If the subprime lending crisis teaches us anything, it is that disclosure is simply not enough. We need to look to increased regulation to protect consumers, most particularly those who are vulnerable.

The recently introduced Credit Cardholders’ Bill of Rights (H.R. 5244) provides a good starting point, but we can do more. Many consumers cannot navigate the consumer financial marketplace; they cannot substitute one card for another on short notice and repay outstanding balances in one fell swoop (even over several months).

What we need is clear prohibitions that curb certain credit card lending practices, such as unjustified significant rate increases. We also need to make sure there are strong remedies for breaches—including subjecting credit card companies to monetary penalties, loan cancellation, and private causes of action (including class actions), establishing greater protection of states’ rights.

Disclosure is but one facet of an approach that must include legislation with real teeth. Only then will the term “consumer protection” have real meaning.

The burdensome, patronizing, new credit card regulations proposed in the wildly misnamed “Credit Cardholders Bill of Rights” will hurt just about every type of U.S. consumer.

Indeed, the new restrictions that self-styled “consumer advocates” and their trial lawyer allies envision will result in immediate, sizeable interest rate and fee increases for the majority of Americans who pay their credit card bills on time. Quite simply, efforts to cap, reduce, and ban penalty fees and interest-rate hikes for bad customers will axiomatically lead profit-minded companies to seek returns elsewhere. Many will hike the annual fees and interest rates for everyone else. New ways to litigate likewise will create another lawyers’ payday while doing nothing to help ordinary Americans.

Those who live on limited incomes or fail to pay their bills on time—the supposed beneficiaries of the proposals—will also see themselves hurt. Many will be denied credit that bureaucrats decide they “can’t afford.” More will find they only qualify for the “secured credit cards”—which require a bank deposit against the credit line—that predominated in the dark days before deregulation helped banks figure out ways to extend credit to everyone.

In fact, the current credit card regulatory system serves consumers pretty well. Although hardly anybody reads through the dense fine-print agreements that come with credit cards, the mandatory easy-to-read disclosures of interest rates, penalties, and fees already give consumers a simple repository of information. The widespread availability of balance transfers—an option on nearly all non-merchant-branded consumer credit cards—helps consumers “repay outstanding balances in one fell swoop” and transfer money away from card issuers whose policies they don’t like.

Of course, the situation isn’t copacetic. Credit card agreements remain difficult to navigate, and many consumers find card issuers unfriendly. A drastic simplification of current regulations could eliminate a lot of the difficult fine print. Decreased regulation of credit card issuers, likewise, could let them find more creative ways to serve consumers’ needs. In short, we need less regulation, not more.

news source : http://www.businessweek.com/debateroom/archives/2008/04/police_those_ch.html

Met police officer charged over misuse of credit cards

A Metropolitan police officer has been charged in connection with the alleged misuse of credit cards belonging to the force.

Detective Sergeant Richard de Cadenet, 38, is due to appear before a local magistrates court today charged with misfeasance in a public office between July 2006 and October 2007.

Two other men were also arrested last year after the alleged misuse of the force's American Express cards.

An off-duty Metropolitan officer was arrested in October at an address in Cambridgeshire and a 51-year-old former officer was arrested in December last year.

All three men were bailed pending further inquiries with Mr Richard de Cadenet being charged yesterday.

news source : http://www.inthenews.co.uk/news/crime/

Met police officer charged over misuse of credit cards

A Metropolitan police officer has been charged in connection with the alleged misuse of credit cards belonging to the force.

Detective Sergeant Richard de Cadenet, 38, is due to appear before a local magistrates court today charged with misfeasance in a public office between July 2006 and October 2007.

Two other men were also arrested last year after the alleged misuse of the force's American Express cards.

An off-duty Metropolitan officer was arrested in October at an address in Cambridgeshire and a 51-year-old former officer was arrested in December last year.

All three men were bailed pending further inquiries with Mr Richard de Cadenet being charged yesterday.

news source : http://www.inthenews.co.uk/news/crime/

Stress for Success: How do you handle your money and credit?

Many Americans are losing sleep these days as they struggle to keep themselves financially afloat.

A major cause of financial anxiety is giving into Madison Avenue's relentless enticement to spend, spend, spend. This may be great for the economy but it's lousy for some peoples' financial health.

If you tend to overspend, see if any of the following five spending habits identified by LaToya Irby (credit. about.com/mbiopage.htm) are leading you to burdensome debt.

• Habit No. 1: Spending more money than you make. To subsidize this habit you dip into savings, get a home equity loan, or make minimum payments on credit cards. These choices may get you through a brief downturn after which you can recover. However if this is an ongoing pattern you'll dig a deeper and deeper debt hole, eventually making it difficult to climb out.

• Habit No. 2 (which facilitates Habit No. 1): Using credit cards for everyday purchases, something many do to earn frequent flier miles. My husband and I do this but we pay off our credit card balance every month, a good habit we've continued since 1986. If you don't pay yours off every month then consider using only cash for weekly purchases like groceries and gas. It's less convenient but safer for staying within your budget.

• Habit No. 3: Being a shopaholic. The best way to disarm this habit is to leave your credit cards at home and carry only as much cash with you as you can truly afford to spend. So when you lust after something that costs $200 and you have only $60 with you, to buy it you'd have to go all the way home to get your credit card then all the way back to the store to buy it, leaving you plenty of time to rethink your acquisition. Or do as a friend does. She postpones some purchase decisions until she has slept on them.

Another friend discovered that frequently she'd lose interest in a recent purchase that at the time she just had to have. She disciplined herself to buy only that for which she could pay in full without using savings. This helped her reduce impulse buying.

• Habit No. 4: Using new credit cards to pay off old ones. This just shuffles debt around and incurs more expenses each time you do it. Don't be fooled, transferring a balance from one credit card to another invariably involves transaction fees, leaving you worse off than before you began.

• Habit No. 5: You spend money you don't have, which is the essence of the previous habits. The obvious solution for this, therefore for all of these habits, is to create and live by a budget that your income can handle.

Do any of these habits sound familiar? Knowing your worst spending patterns gives you a head start in changing them.

news source : http://www.news-press.com/apps/pbcs.dll/article?AID=/20080415/HEALTH/804150310/1013/LIFESTYLES

Hacker Steals Credit-Card Info From Vermont Ski Resort

A ski resort in Vermont announced on Monday its computer network was hacked in February.Okemo Mountain Resort said the intruder gained access to credit-card data between Feb. 7 and Feb. 22.The resort said it was unclear how many cardholders were affected by the breach.

According to the resort, a review determined that data from nearly 30,000 credit-card transactions during the 16-day period as well as more than 18,000 credit cards used at Okemo between January and March 2006 was accessed.There was no evidence of a security breach to computer systems at Mount Sunapee in New Hampshire or Crested Butte in Colorado, the resort said.Okemo said it has notified Visa, MasterCard and American Express of the intrusion, and banks will notify affected cardholders.According to the resort, federal law enforcement officials are investigating the security breach.

news source : http://www.nbc30.com/money/15757489/detail.html

Credit card fraud on the rise

FOR most businesses in the retail sector, credit cards are a fact of life. Unfortunately, so is card-related fraud.

For a long time, credit card fraud has been low in Australia, compared with similar countries, but there are signs that it is on the rise.

According to the Australian Payments Clearing Association, 16.7 transactions out of every 100,000 using credit cards last year were fraudulent, up from 14.8 per 100,000 the previous year. But a remedy might be in sight, with the banks recently beginning planning for the introduction of a system called "chip and PIN" that promises improved security.

The new generation of cards will mean that instead of the customer signing a receipt to say they have paid for their goods, they will have to enter a four-digit Personal Identification Number (PIN), as for an Eftpos transaction. The chip in the card will contain encrypted information that will help to determine if the card is genuine, and will verify the PIN.

The aim of the technology behind the system is to ensure that the person using the card is the legitimate owner. The chip has enough memory space to eventually accommodate other information to improve security as well, such as biometric identifiers.

But the introduction of this technology does not signal the end of card fraud, according to Carl Clump, CEO of international e-commerce security firm Retail Decisions, who points to the British experience as a useful guide for Australia.

"The UK introduced chip and PIN-style security measures for credit cards several years ago, so that a numerical password was needed for face-to-face purchases," he says.

"Even before the new system was in place, we saw fraudsters migrating to e-commerce, where all that is needed is the card number and other information on the card itself.

"We believe that fraudsters in Australia are already moving the same way they did in Europe. Credit card fraud is big business, international in reach and highly mobile in outlook. The key players are very smart, and are always looking for weaknesses."

Customer-not-present, or CNP, fraud requires only the card number, and the big targets are sales by telephone, websites or TV. Card numbers are obtained by theft of cards, illegal copying of the numbers by a low-level employee in a retailer, or hacking directly into the computer networks of banks. A new trend, however, is criminals attaching card number "skimmers" (which can be easily bought over the web) to Automatic Teller Machines.

Several Australian banks have already seen their ATMs attacked in this way. Last year, a gang of Swedish fraudsters broke into an Ikea store and secretly installed skimmers on the cash registers.

Traditionally, the main targets for online card fraud have been high-value items such as plasma TVs, computers, iPods and mobile phones. However, in the past few years fraudsters have widened their net.

"We recently saw a case in the UK involving large quantities of disposable nappies that had been bought online with fraudulent card numbers," Clump says.

He also points to store gift cards as another common target for CNP fraud, especially the cards of large chains offered through websites.

"Some retailers are very wary of international credit cards," Clump says. "They sometimes respond by simply refusing to accept online transactions using cards from other countries. That's not necessarily the right thing to do. The real answer is to use methods that focus on identifying suspect numbers."

Clump's company offers a subscription-based service call ReD Shield to combat CNP fraud, integrating databases of lost or stolen cards, "warm" or suspect numbers, and sophisticated mathematical analysis. The system provides updates on emerging scams and new targets for organised fraud.
news source : http://www.news.com.au/business/story/0,23636,23444881-14327,00.html