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

Credit card payments taking off

About three months since they were first accepted, credit card payments at District Justice Richard E. Martin's office have surged in popularity.

"Not a day goes by when there aren't credit card sales," said Patty Albright, Martin's office manager.

She said $3,130 in January was paid with credit, which includes the 3 percent fee added to each credit card transaction. In February, it was $5,450, she said.

So far this month, there has been about $2,500 paid with credit cards.

In December, the county began accepting credit cards at Martin's office to address increasing demands for credit payments at some district justice offices.

"It's mostly citizens who have traffic citations who ask to pay by credit card," said Freya Sponseller, manager for District Justice Dwayne A. Dubs' office in Hanover, where credit card payments are expected to be implemented in mid-April.

Despite the demand, the county resisted providing the service because it had trouble finding a provider that would not charge the county.

The 3 percent fee prevents taxpayers from paying for operating costs.

Martin's office accepts MasterCard and Visa, and it uses a swipe format similar to machines found in grocery stores, restaurants and shops.

The results were better than the office imagined, Albright said, even though clerks were uncertain if people were open to paying the added charge. Most have been willing to pay more money for the convenience of credit, she said.planned, the payment system will expand to five other district justice offices in the county.

news source : http://ydr.inyork.com/ci_8686317

Alitalia seeks 300 mln eur govt credit line UPDATE

(Updating with Italian politicians' reactions)
MILAN, Mar. 17, 2008 (Thomson Financial delivered by Newstex) -- Italian state-owned carrier Alitalia SpA said it has asked for, and expects to receive from the government, a 300 mln eur credit line that it will repay immediately after its planned capital hike.

In a statement overnight, Alitalia said it expects Air France-KLM's (NYSE:AKH WS) (OOTC:AFLYY) offer to acquire the airline to be launched by the end of June.

Yesterday, the board of Alitalia approved Air France's offer, which is subject to a series of conditions including obtaining the credit line, which will have to be fulfilled by the end of the month.

After these conditions are met, and if in the meantime no 'material adverse change' and other constraints emerge, Air France will launch its bid, which values the state-controlled carrier far below its market price.

Before being launched, the offer will also require EU antitrust clearance.

Air France will offer one share for every 160 Alitalia shares, valuing the company at 139 mln eur, or 0.10 eur per share. This is below Friday's closing price of 0.541 eur and expectations for 0.22-0.23 eur.

In addition, Air France will also bid for 100 pct of the airline's convertible bonds at about 608 mln eur, or 0.3145 eur per bond, in line with Friday's market price, bringing the total potential outlay to 747 mln.

The Italian state, which holds 49.9 pct of Alitalia, will have a 2-3 pct stake in the combined group, reports said.

Following the successful completion of the offers, Alitalia will launch a 1 bln eur rights issue that will be fully guaranteed by Air France.

Italian newspapers said to make Alitalia competitive from 2011, Air France plans to cut Alitalia's passenger capacity by 10 pct, cut its fleet to 137 planes from 185, exit from the cargo segment, and invest 850 mln eur.

According to the reports, Air France plans 1,600 layoffs out of 11,000 people at Alitalia's flight operations AZ Fly and transfer to state holding company 4,500 to 5,100 employees of Alitalia's 49 pct service operations affiliate AZ Servizi.

Trade union approval is among the conditions to validate Air France's offer.

Newspapers said Air France's and Alitalia's heads Jean-Cyril Spinetta and Maurizio Prato will meet tomorrow with Alitalia's nine trade unions.

Newspaper said the unions were very critical towards Air France's offer, with pilots union ANPAC clearly saying it will not approve the offer unless Air France's plans for Alitalia are changed.

Newspapers said members of the centre-right coalition, which is ahead in latest opinion polls for April's 13-14 general election, are divided over Air France's proposal.

Ex-prime minster Silvio Berlusconi, who leads the centre-right People of Freedom coalition, declined to comment, daily La Repubblica said.

Among other centre-right politicians, Alleanza Nazionale leader Gianfranco Fini said he is positive towards Air France pending decisions by trade unions, while representatives for the Northern League are against, the paper added.

Politicians of the centre-left Democratic Party are reportedly favourable to Air France's offer.

Copyright Thomson Financial News Limited 2008. All rights reserved.

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
news source : http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-23811967.htm

Credit Cards Are Frothy, Not Bubbly

A month ago, BusinessWeek ran a cover article essentially predicting that credit cards would be the next shoe to drop in our increasingly precarious economy. “The party was paid for with credit cards,” read the magazine’s bold cover line. “The hangover will be a whopper.”

In the article itself, BusinessWeek had anecdotes about rising defaults, weakened credit card securitizations (all of which, by the way, have triple-A ratings, just as their subprime brethren once did), and lower profits for the big credit card banks like JPMorgan Chase and Capital One. American Express has raised its loan loss provisions by 70 percent; Capital One has put $2 billion aside for loan losses, and might need to do more. And on and on.

As for consumers, BusinessWeek had no trouble finding people who were facing suddenly higher interest rates and lower credit limits as the companies began taking measures to hold their losses down. Even bankruptcies are once again on the rise — this despite the tougher bankruptcy law that the banking industry helped pass three years ago. The article ended with a bank analyst saying, “We’re in uncharted territory.”

Yes, we are. As it happens, I spent this week rummaging around the world of credit cards, trying to answer the same question as BusinessWeek. I found my own set of scary statistics, and talked to credible bears who feared the worst. “Is it a ticking time bomb?” asked Sean Egan, co-founder of the independent ratings firm Egan-Jones — and a man who has been prescient about the subprime crisis. “Absolutely.” And I watched, via the Web, a Congressional subcommittee hearing aimed at stopping some credit card abuses that have become rampant.

My initial instinct was also to believe that credit cards would be a rerun of the subprime mess — as consumers got in deeper and deeper trouble, the pain would move up the food chain, affecting Wall Street and the companies as much as Main Street. Capital One would become the credit card version of Countrywide; securities built around credit card receivables would crumble, just like subprime securities.

But what I actually discovered has made me question that assumption, and now I’m not so sure it’ll turn out that way. Which is not to say there aren’t problems with credit cards — or that many credit card users aren’t going to feel a fair amount of pain. They surely are. It’s just that, to a maddening degree, credit card companies will actually do O.K. while the rest of us suffer. Annoying, isn’t it?

news source : http://www.nytimes.com/2008/03/15/business/15nocera.html?ref=business

Credit Cards Are Frothy, Not Bubbly

A month ago, BusinessWeek ran a cover article essentially predicting that credit cards would be the next shoe to drop in our increasingly precarious economy. “The party was paid for with credit cards,” read the magazine’s bold cover line. “The hangover will be a whopper.”

In the article itself, BusinessWeek had anecdotes about rising defaults, weakened credit card securitizations (all of which, by the way, have triple-A ratings, just as their subprime brethren once did), and lower profits for the big credit card banks like JPMorgan Chase and Capital One. American Express has raised its loan loss provisions by 70 percent; Capital One has put $2 billion aside for loan losses, and might need to do more. And on and on.

As for consumers, BusinessWeek had no trouble finding people who were facing suddenly higher interest rates and lower credit limits as the companies began taking measures to hold their losses down. Even bankruptcies are once again on the rise — this despite the tougher bankruptcy law that the banking industry helped pass three years ago. The article ended with a bank analyst saying, “We’re in uncharted territory.”

Yes, we are. As it happens, I spent this week rummaging around the world of credit cards, trying to answer the same question as BusinessWeek. I found my own set of scary statistics, and talked to credible bears who feared the worst. “Is it a ticking time bomb?” asked Sean Egan, co-founder of the independent ratings firm Egan-Jones — and a man who has been prescient about the subprime crisis. “Absolutely.” And I watched, via the Web, a Congressional subcommittee hearing aimed at stopping some credit card abuses that have become rampant.

My initial instinct was also to believe that credit cards would be a rerun of the subprime mess — as consumers got in deeper and deeper trouble, the pain would move up the food chain, affecting Wall Street and the companies as much as Main Street. Capital One would become the credit card version of Countrywide; securities built around credit card receivables would crumble, just like subprime securities.

But what I actually discovered has made me question that assumption, and now I’m not so sure it’ll turn out that way. Which is not to say there aren’t problems with credit cards — or that many credit card users aren’t going to feel a fair amount of pain. They surely are. It’s just that, to a maddening degree, credit card companies will actually do O.K. while the rest of us suffer. Annoying, isn’t it?

news source : http://www.nytimes.com/2008/03/15/business/15nocera.html?ref=business

KTC builds niche in tourism

CHIANG MAI : The consumer credit giant Krungthai Card is confident that it can successfully build on its leadership in the niche market for tourism and wedding credit cards.

The company, a unit of Krung Thai Bank, is spending 45 million baht in marketing activities in the first quarter, 20 million of which is going to its International Balloon Wedding Fair, a special campaign held over this past weekend in Chiang Mai in co-operation with MasterCard.

KTC plans to stage similar travel and wedding fairs later this year to build up its leadership in the segment.

''It's our first step to becoming the leader in credit cards tied with weddings,'' said Staporn Sirishinha, a KTC senior executive vice-president for leisure marketing.

He noted that card spending at the International Travel Fair last month was 200 million baht, or up tenfold from the previous year. Visitors increased fourfold to 400,000. Sponsorships and promotions at special fairs and exhibitions represent a key strategic initiative for KTC.

KTC reported 2007 net profit of 521 million baht, up 19% from 2006. Revenue rose 32% to 10.7 billion baht. Its member base rose 10% to 1.94 million accounts, including 1.46 million credit cards.

Meanwhile, Thawatchai Thitisakdiskul, another KTC senior executive vice-president, said the Bank of Thailand should be more flexible on current interest rate restrictions on consumer credit companies to help boost market competition.

The central bank currently caps interest rates for credit cards at 20% per year and personal loans at 28%.

But consumer finance operators say the caps only limit their ability to set pricing based on risk and result in many low-income consumers being cut off from credit.

Many turn to underground lenders who charge usurious interest rates.

news source : http://www.bangkokpost.com/Business/10Mar2008_biz35.php

Shares Tumble as Credit Worries Worsen

The decline in the market that started Thursday morning in Europe and accelerated in New York hit the Asian markets hard in early trading Friday.

Tokyo was down 3.30 percent at noon, reaching a six-week low, while markets in Hong Kong and Sydney were trading down more than 3 percent, setting the stage for what was shaping up to be a difficult day across Asia. Other markets, including Taiwan and Shanghai, were all opening lower.

The declines came amid renewed anxiety about the availability of bank loans — and fears that the Federal Reserve in Washington may be unable to curb the credit slump.

In New York trading, the broad Standard & Poor’s 500-stock index dropped 2.2 percent, or 29.36 points, reaching its lowest close since September 2006. The index, which closed at 1,304.34, is off more than 16 percent from its peak last fall.

Shares of financial services firms led the sell-off, which spread to every major sector of the market. Investors were unnerved by high-profile loan defaults at Carlyle Capital, an investment firm based in Guernsey, Channel Islands, that handles $21.7 billion in assets.

It was a double-barreled bit of bad news. The assets of Carlyle have lost value in recent months, to the point where the firm cannot pay back some loans. And the fact that the banks called in the money in the first place suggests they are anxious about maintaining the size of their credit lines.That touched off fears among investors, who sent the Dow Jones industrial average down 214.60 points, or 1.75 percent, to 12,040.39. All but one of the Dow components declined.

The Nasdaq composite index fell 52.31 points, or 2.3 percent, to 2,220.50.

Yields on agency mortgage-backed securities rose to their highest level relative to Treasuries in 22 years.

Investors were also discouraged by strong inflationary signals from the commodity and currency markets. Crude oil settled at another record, $105.47 a barrel, up 95 cents, or 0.9 percent. The euro hit another record against the dollar at $1.5370, before falling back to $1.5365, after European central banks chose to hold interest rates steady.

The yields on 10-year Treasury notes, which move in the opposite direction from the price, fell as investors rushed into government bonds. The price rose 23/32, to 99 10/32. The yield declined to 3.58 percent, from 3.67 percent.

The credit market troubles arrived on the day of a report that home foreclosures reached a record in 2007. The percentage of loans past due or in foreclosure jumped to 7.9 percent at the end of last year. Before the third quarter, the rate had never risen above 7 percent since records began in 1979.

Investors may also be looking ahead to Friday’s employment report from the Labor Department, considered the most important indicator of the nation’s economic health. Economists have predicted that payrolls rose by 25,000 jobs in February.

“Anything that is less than on target could throw Wall Street over the edge,” said Sam Stovall, chief investment strategist at Standard & Poor’s.

The 2.2 percent decline in the S.& P. 500 means that the index has lost $2.39 trillion in value in 103 trading days, according to Howard Silverblatt, an analyst of the index.

news source : http://www.nytimes.com/2008/03/07/business/worldbusiness/08stox-web.html?ref=worldbusiness

Only a fool would use a credit card to invest

sk the Fool: Why shouldn’t I borrow against my credit card and invest in the stock market? – K.L., via e-mail

A: Danger, Will Robinson! The U.S. stock market has, over decades, averaged about 10 percent per year in returns. But that’s an average. In some years, it loses money – such as 9 percent in 2000, 12 percent in 2001 and 22 percent in 2002. (This was followed by a 28 percent gain in 2003 and an 11 percent gain in 2004.) Meanwhile, credit cards were recently charging an average rate of about 13 percent to 14 percent. So overall, in the long run, you’re likely to lose more than you gain if you try to make money in stocks while forfeiting money to credit card issuers.

Ask the Fool: What does “UIT” stand for? – Liz, via e-mail

A: It’s a unit investment trust, invested in a relatively fixed portfolio of securities (such as, say, five or 20 stocks or bonds), with no investment manager buying and selling holdings throughout its life. The UIT components are held until the trust is liquidated at a predetermined date in the future – which could be several or many years down the road. Investors who want to trade shares of UITs before they mature can often do so on the secondary market.

Unlike a mutual fund, UIT share prices in the secondary market may be priced above or below the net asset value of the trust’s actual holdings. When you buy shares of UITs, you typically pay a sales fee, or load, of around 4 or 5 percent. But you should note that many mutual funds carry no sales loads at all.

My dumbest investment: Lord, grant me the serenity to accept the things I cannot change, the courage to change the things I can, and the wisdom to know the difference. This means don’t invest in things you don’t know much about. I made a real estate investment in a marginal property and lost hundreds of thousands of dollars. It makes every mistake I ever made in the stock market appear trivial. Blind faith, hunches, and the assumption that there is a solution to every problem are what lead people into financial disasters. You must know your limitations and not fall prey to gimmicks, fads or addictions. – A.M., Honolulu

The Fool Responds: You’re right. Hunches and assumptions can sink us financially. They can sink us in stocks, too, when we blindly act on a hot stock tip or assume that just because a product is popular, that its company’s stock will go through the roof. (The stock might already be overpriced.) It’s best to take the time to learn all about investing before jumping into things that seem too good to be true. You might start at

Foolish trivia: I was founded in Chicago in 1918 by a 22-year-old who rented out a dozen Model T Fords. I was later owned by General Motors, RCA, United Airlines and Ford. Today, I’m the world’s largest general-use car rental brand and the No. 1 airport car rental brand. I had 1,000 locations by 1955, and today they number nearly 8,000 in 145 nations. I now offer hourly rentals, as well as a “Green Collection” line of energy-efficient hybrid vehicles. I operate a top American equipment rental business. In 1994, I stopped using my most well-known celebrity endorser. Who am I?

Answer to last week’s trivia: Founded in 1923, my business stems from the mammal mus musculus, cousin of Speedy, Mighty, Jerry, Danger, Fievel, Itchy and Motor. Many people, especially small ones, think I’m supercalifragilisticexpialidocious. I opened my first park in 1955 and now operate a bunch in the U.S., France, Japan and Hong Kong. I’m the second-biggest media conglomerate in the world, with four major business segments: studio entertainment, parks and resorts, consumer products, and media networks. My brand names include Pixar, Miramax and ESPN. My main TV network is easy as 1-2-3. I built a utopian city in Celebration, Fla.

Who am I? Answer: Walt Disney Co.

The Motley Fool take: The Shanghai stock market, as measured by the Shanghai Composite Index, was recently up a whopping 70 percent, year over year.

China’s market has cooled, but it’s still unquestionably hot. While China’s economic growth is very real, so was the growth of the Internet nearly a decade ago – and that turned out very, very badly.

China will likely have a stronger and more impressive economy a decade from now, but there are signs of inflation as well as signs that the country might have to moderate its growth to conserve one of the most basic resources we all take for granted: water.

In other words, the balance of risk and reward is now better in other developing economies – ones that haven’t seen their markets triple in a few short years. Look at Mexico, Brazil and Chile, for example, as they offer above-average growth potential and plenty of intriguing opportunities.

No matter how bright the future, investors must take a pass when valuations become unfavorable – as they have in China. Fortunately, we have the rest of the world to look to for bargains, and now is a promising time to get going.

The Motley Fool is written by Tom and David Gardner for Universal Press Syndicate. The name comes from Shakespeare’s “As You Like It” and the Elizabethan days, when fools were the only people who could get away with telling the truth to the king or queen.

What do you know about Warren Buffett, one of the world’s richest people? Probably not enough.

Born and raised mostly in Omaha, Neb., Buffett was fascinated by the stock market from a very early age. He bought his first shares of stock at the age of 11, making mistakes and losing some money along the way, as every investor does. But he kept learning and applying what he learned. He had $9,000 in the bank when he graduated from high school. (Adjusted for inflation, that’s more than $90,000 in today’s dollars.)

Today Buffett heads up Berkshire Hathaway, a company he built with his partner, Charlie Munger. It has made many people very rich, and it is actually a collection of many smaller companies that Buffett bought in their entirety, such as Dairy Queen, GEICO, Fruit of the Loom, Benjamin Moore, See’s Candies, Executive Jet, FlightSafety, Nebraska Furniture Mart, The Pampered Chef and the Buffalo News (a newspaper company).

He also owns big and small chunks of many other companies, having bought their stock. As of the end of 2006, for example, Berkshire Hathaway owned sizable portions of American Express, Coca-Cola, Procter & Gamble, The Washington Post, Anheuser-Busch, Johnson & Johnson and Wells Fargo.

How has Buffett done? Well, remember that the stock market on average has grown by about 10 percent per year, on average. Meanwhile, Buffett’s company has grown by more than 21 percent per year, on average, since 1965, and is now worth more than $200 billion (a fifth of a trillion dollars). Ten thousand dollars invested with Buffett in 1965 has grown to be worth more than $36 million. Buffett is leaving most of his own tens of billions to charity.

news source : http://www.thenewstribune.com/business/story/298386.html

Teens 'caught with credit card stash'

Four teenagers have been arrested on the New South Wales mid-north coast for using false IDs and credit cards to buy computer and electrical equipment in the region.

The four young men had travelled from Sydney and one is believed to be in the country illegally.

A car believed to be involved in the scam was stopped by police at Kempsey yesterday.

Officers allegedly found computers, electronic equipment and a large number of credit cards.

All four have been refused bail to face Port Macquarie Children's Court today.

news source : http://www.abc.net.au/news/stories/2008/02/28/2174930.htm

GE Money May Seek Partners for Non-U.S. Units (Update1)

Feb. 22 (Bloomberg) -- General Electric Co. is seeking potential partners or buyers for some consumer credit card, mortgage and loan units outside the U.S. to reduce riskier financial assets, according to three people with knowledge of the plan.

GE Money, the world's biggest issuer of store-branded credit cards, is reviewing its card portfolio in markets including the U.K. and Australia, said two of the people who declined to be named because the talks are private. The Fairfield, Connecticut-based company met with banks in those countries to gauge interest, they said.

A decision to sell or seek a partner for some overseas consumer-loan units would expand on Chief Executive Officer Jeffrey Immelt's announcement in December to do the same for the U.S. card unit. He wants to shift as much as $50 billion in assets to commercial finance businesses that have higher returns and lower risks of default.

``Most of the U.K. banks are trying to control rising card delinquencies,'' said Simon Willis, an analyst at NCB Group in London. ``Over the last two years growth has slowed dramatically.''

Developed countries such as the U.S. and U.K. may have rising delinquencies as their economies slow, increasing the risk of consumer defaulting on their payments. GE Money's U.S. delinquency rate rose to 5.52 percent last year from 4.93 percent. The rate outside the U.S. was little-changed at 5.3 percent.

`Evaluating Our Portfolio'

``We've maintained consistently that we're evaluating our portfolio around the world,'' said Robert Rendine, a U.S. spokesman for GE. He declined to comment on specific countries or markets.

The card unit is part of GE Money, the consumer-finance division where Immelt has said profit will be little changed this year. GE Money, which is moving its headquarters to London from Stamford, Connecticut, has about 4,000 employees in the U.K. and serves about 10 million customers, according to its Web site.

GE Money provided $25 billion of the parent company's $172.7 billion in sales last year. About 75 percent of the segment's sales and more than two-thirds of the profit came from outside the U.S. last year.

GE last year announced the sale or partnership of all of GE Money Japan's consumer unit and last month said it was seeking partners for non-card units in India.

The company is using partnerships to expand in emerging markets, including a 43 percent stake in Hyundai Capital Services Inc. in South Korea and a 26 percent stake in Turkey's Turkiye Garanti Bankasi AS.

U.K. Credit Cards

General Electric is also reviewing its U.K. consumer finance businesses, the people said.

The U.K. has more payment cards per adult than any other country in Western Europe, with average British adults carrying 2.8 cards in their wallets, according to London-based Datamonitor Plc. Even so, the U.K. credit market is forecast to grow at an average annual rate of 0.2 percent, the slowest pace in the region, Datamonitor said in a report this month.

The consumer finance unit's assets rose to $211 billion last year from $180 billion in 2006, according to General Electric's annual report to the U.S. Securities and Exchange Commission. About $34 billion of the assets are related to credit cards including private labels.

HSBC Offices

GE is not the only company that has been repositioning its credit businesses in Europe. HSBC Holdings Plc, Europe's biggest bank by market value, in October sold 338,000 U.K. credit card accounts to SAV Credit Ltd. for about 385 million pounds ($757 million).

HSBC has closed some U.S. offices and changed management and is scaling back its subprime lending after profit was eroded by bad loans. The bank will continue its U.K. cards operation for mainstream borrowers with its HSBC and First Direct brands and through retailers.

Royal Bank of Scotland Group Plc, HSBC and Barclays Plc are the biggest credit card issuers in the U.K., according to Datamonitor.

Credit card balances in Australia amounted to A$43 billion ($39.6 billion) at the end of last year, according to the Reserve Bank of Australia. The biggest card issuer in that market is Commonwealth Bank of Australia, followed by Westpac Banking Corp.

GE's credit card receivables in Australia are more than A$2 billion, according to one of the people.

GE's U.S. private-label credit-card unit operates branded cards for companies such as Wal-Mart Stores Inc. and J.C. Penney Co. The company has already received ``expressions of interest,'' for the U.S. unit, amid a slowing economy, Immelt said in December.

General Electric declined 14 cents to $33.55 at 4 p.m. in New York Stock Exchange composite trading. The shares have declined 5.2 percent in the past 12 months.

news source : http://www.bloomberg.com/apps/news?pid=20601087&sid=av2nG6tjJl8Q&refer=home

New Credit Card Offers Small Business Owners Twice the Rewards on Travel and Entertainment

MCLEAN, Va. - (Business Wire) Capital One Financial Corporation (NYSE:COF) recently announced the launch of its Preferred No Hassles Miles card, a card that offers small business owners double rewards for travel and entertainment purchases.

“Travel and entertainment is a significant spend category for many small business owners. As such, we created the Preferred No Hassles Miles credit card so that our customers could earn the most rewards where they spend the most money,” said Dave Wasik, Senior Vice President, Capital One Small Business.

With no annual fee, customers earn two miles per dollar on all travel and entertainment purchases made with airlines, restaurants hotels, bowling alleys, buses/charters, car rentals, cruise lines, movie theatres, passenger railways, taxicabs/limousines, timeshares, travel agents, and video rental stores. This broadened definition of the travel and entertainment category, which has traditionally been limited to airline and restaurant transactions, coupled with Capital One’s no foreign transaction fee policy, makes this card ideal for business owners looking for more flexibility in earning rewards on their travel and entertainment purchases. Additionally, customers will earn one mile per dollar for all other purchases. Miles can be redeemed for travel, gift cards, merchandise, and even cash that can be put back into their business.

news source : http://www.earthtimes.org/articles/show/

When is a credit score repair service offer a scam?

By the end of 2007, Americans owed more than $915 billion in credit card debt, and the credit crunch is clearly impacting consumers as lenders are becoming more choosey about who gets loans and who doesn't. Given stricter loan and credit requirements, Better Business Bureau is warning that some companies are using the credit crunch to take advantage of consumers by promising bogus credit repair services that can be costly and in some cases illegal.

Complaints to BBB about credit repair companies have risen for three straight years, topping more than 1,400 in 2006 - a 38 percent increase since 2004. More than 400 of those complaints were not resolved, meaning BBB was not able to track down the company or the company refused to take steps to resolve the issue with the consumer.

With the economy slowing and lenders becoming increasingly picky, many people are looking for fast, easy ways to fix or even erase damage to their credit history. Consumers need to be very careful when searching for or using a credit repair agency. In some cases consumers are being charged for work they could have done on their own for free, and in the worst case scenarios, consumers are unwittingly encouraged to engage in illegal activities, without their knowledge.

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

RBI mulls regulations for credit card cos

MUMBAI: Reserve Bank of India plans to chalk out regulations for companies engaged in the credit card business and proposes to make it mandatory for all players to register themselves with central bank prior to operating as issuers. "The regulations will have to be drawn out...They (companies) have to register," RBI Deputy Governor V Leeladhar told reporters on the sidelines of a CII-organised conference here today. Presently, major credit card providers in the country like Visa and Master Card are operating in affiliation with banks. However, the banking regulator has not set any time-frame for the proposal, Leeladhar said. "This is a new area we will have to look at," he said. Parliament has recently passed the Payment and Settlement Act, 2007, while the regulatory framework for implementing the law is currently being worked out, Leeladhar said. The Act would give more powers to the apex bank in the payment and settlement matters, including in those related to credit cards, Leeladhar said. According to industry sources, non-banking financial companies (NBFCs), not affiliated with banks, are presently not allowed to engage in the credit card business. News source : http://economictimes.indiatimes.com/

Moody's says bad debt on credit cards on rise

The company's prediction of rising amounts of bad credit card debt until some time in 2009 carries "no immediate ratings implications" for securities backed by the receivables, according to a statement yesterday from Moody's, a credit-ratings firm.

"Both the charge-off and the delinquency rates are clearly on the rise and, in the coming months, will likely continue to rise," William Black, a senior vice president, said in the statement.

More Americans are struggling to repay their card debt, with charge-off rates rising from the depressed levels that followed a spike before bankruptcy law changes in 2005.

In November, the most recent month for which data are available, the rate was below 5 percent, less than the historical average of 5.5 percent, according to Moody's. After the last recession, charge-offs peaked at 7.1 percent in May 2003, Moody's said.

Rising credit-card losses so far have prompted only a "moderate" tightening of standards at issuers such as American Express Co., Capital One Financial Corp., and Discover Financial Services, Eric Wasserstrom, a UBS AG analyst, said last week.

Prime credit-card charge-offs increased by 0.15 percentage points last month, to 5.36 percent, Fitch Ratings said. Fitch expects charge-offs rates to rise at least 35 percent this year.

Moody's said it expects other measures of card performance, such as the amount of repayments by borrowers and the amount of yield charged on the debt, to "remain strong."

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

Are high-tech credit cards putting your identity in danger?

By WINK News

Story Created: Feb 10, 2008 at 1:16 PM EST

Story Updated: Feb 10, 2008 at 1:16 PM EST

FORT MYERS, Fla. - It used to be that paying with cash was the quickest way through a checkout line.

But that may be changing.

WINK News and Consumer Reports takes a look at a touchless technology that's supposed to get you in and out of a store with a wave of your hand.

Visa says it's literally the next wave for consumers. Paying for something by waving your card in front of a special reader. Visa's "paywave" technology is offered by 41 card-issuing banks around the world and accepted at more than 32-thousand retailers.

The cards use microchips and radio waves to transmit encrypted information, with the card, you don't need to sign for most purchases under 25 dollars.

That means speedier checkouts.

Sure it's convenient, but Greg Daugherty of Consumer Reports Money Adviser says there could be a downside to waving all that information through the air.

"The card issuers deny it, but some people think this technology exposes you to greater security risks, such as identity theft. There's concern about a tactic called skimming, where a thief could use a portable card reader to literally skim your encrypted information out of the air," Daugherty explains.

Visa insists the data on your card can only be processed by secure readers at authorized merchants. Plus, paywave cards are covered by Visa's zero-liability policy, meaning you're not responsible if a thief uses your card. but there are other pitfalls.

"You may not get a receipt on transactions under twenty-five dollars unless you ask for one, which could be a problem if you need to return something," says Daugherty.

A study last year by smart card alliance found people spend an average of 20 to 30 percent more when using touchless technology. So, be careful if you wave and pay.

You could find yourself with some unexpected debt.

If you decide to apply for a "touchless" pay card, Consumer Reports says be sure to read the fine print. Double-check to see whether the card has penalty fees, which can add up to a lot of money in short order.

news source : http://www.winknews.com/news/consumer/15491936.html

Spotting Credit Repair, Counseling Scams

CBS) More and more consumers are turning to credit counseling and credit repair agencies for help getting out from under a mountain of accumulated credit card debt. While some are legitimate, says Early Show money maven Ray Martin, others are only out to fleece you. How can you tell one from another? Martin offers advice in this column.


With a perfect storm of falling housing values, rising loan defaults and a slowing economy, more folks are struggling to manage their debts, and more will turn to companies that sell credit repair and credit counseling services.

Many of these companies aren't regulated by federal law, so anyone can open a credit counseling business. As a result, the services provided can vary widely from one company to the next.

The trick is to not get confused by the similar names and similar claims.

If you are struggling with debt, a legitimate credit counseling company can help. But a bad one can do more damage.

Here’s a guide to help you know what to look for.

A Few Bad Apples

Many credit counseling companies are set up as non-profit corporations. This can create an appearance that these companies exist solely to look out for you -- that they exist to provide a public service. This nonprofit status enables them to gain a marketing edge by creating an image that implies, “We’re the good guys. We’re a non-profit credit counseling company!”

Unfortunately, in some cases, the services provided come with a hidden agenda and lots of hidden fees. The most famous example was Ameridebt, which agreed to shut down its debt management operation in a settlement with the Federal Trade Commission, which had charged that Ameridebt deceived consumers into paying at least $170 million in hidden fees when it claimed to be a nonprofit that would teach people to manage their finances for no upfront fee.

Credit Repair Shops

These outfits claim that, for a fee, they'll clean up your credit report so you can get another loan, get a better mortgage, better insurance rates, or even a job. Essentially, they offer to manipulate or even manufacture credit report information about you that creates the appearance that you have been a responsible consumer of credit. Often the promise includes removing all late payments and other derogatory information from your credit report.

Of course, to perform this service -- who wouldn’t want to start over with a “clean slate” when it comes to your credit reports -- you simply have to pay a few thousand dollars and agree to a few credit schemes.

Tip Off to the Rip Off

One of the credit repair schemes is to “create a new you” by applying for and obtaining an Employer Identification Number for you to use instead of your Social Security Number on new credit applications. Another trick is to use “piggybacking,” which is where you are added as an authorized user on another individual’s credit account, which of course has a good history of timely payments, the objective being that the other person's account with the good history appears on your credit report, which increases your credit score.

What you should know is this: Aside from being dishonest, these scams are illegal. It is a federal crime to lie on a loan application or obtain and use an Employee ID number under false pretenses. And the claims to remove negative information from your credit report? No one can legally remove accurate and timely negative information from your credit report.

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

Roadshow: Irritating credit card limits are based on fear of fraud

Q With the expectation that gas prices will go higher, my complaint is credit card limits of $60 or $75 at the pump. With full-size cars, I am always a gallon or so short of filling up, which I like to do to keep track of mileage to gauge how my vehicles are running. And with our trucks (we have horses), it takes two or sometimes three iterations of swiping to fill up. Why do they do this when seemingly everyone will hit these limits at current prices? Call me aggravated.

Dave Biasotti
Gilroy
A Limits are set by the credit card companies and there is a reason - fraud. Gas station folks say they almost always eat fraud losses when a stolen card is used, something more likely to happen at a station where there may be no face-to-face encounter with a clerk. Also, if station owners do not abide by these limits, the penalties can be stiff. The limit can range from $60 to $75.

Q It used to be that gas would flow quickly out of the pump until the last 10 cents of my transaction. Then it would trickle out until done. That number started to gradually increase over the past few years to the point that at some pumps, the gas slows down 50 cents before my transaction is done. It really ticks me off. It sometimes takes just as long for that last 50 cents to slowly trickle out as it did for the previous $20. I think it's a big scam to make money off customers not willing to wait around over a measly 10, 20 or 50 cents. I

bet others grumble about it as well.

Rhya Gilliam
Newark
A So far, no one has. There is a reason - higher prices. Gas pumps are not capable of going full speed, then shutting off just at the right time. When gas sold for $1 a gallon, it would begin slowing down during the last 15 cents. At $3 a gallon, it begins to slow during the last 45 cents. As fuel gets more expensive, it needs more pennies before stopping. If you use a credit or debit card and want $40 worth of gas and if the dispenser went to $40.01, the bank charges the full $40.01 to the station but $40 to you. So they slow the dispenser.

Q There is a gas station near where I live that has two prices - one if you pay cash and one if you pay by credit card. I thought the state banned this years ago?

Steve Pelovsky

A There is an aggravating loophole. It is legal to offer a discount when motorists pay with cash and another price when paying by credit card.

news source : http://www.mercurynews.com/ci_8182990

Masked men invade Stony Brook dorm

A card game among Stony Brook University students took a frightening turn early Tuesday when two masked men entered their dormitory, demanded money and hit a young man in the head after the students said they didn't have cash, law enforcement officials said.

News of the attempted burglary came on the same day police announced they were searching for a man believed to have stolen more than 20 credit cards from women's purses in eight university buildings. Assistant Chief Douglas Little of the university police said investigators do not believe the credit card thefts are related to the attack.

The men wearing ski-type masks entered an open dorm room where six students were playing cards about 12:30 a.m. One of the students said he was hit with what may have been a pistol, but did not require medical attention, police said.
The men were driven away by an accomplice in a dark-colored sedan, possibly a Mercedes-Benz, university police said. Little said the burglars apparently knew a card game was going on, but it was not known how they entered the Eisenhower College building, which requires an identity card.

"There are strong leads," Little said at a news conference.

The credit card thief has targeted unoccupied academic offices, discreetly stealing the cards from purses, leaving many women unaware they were burglarized until they try to make a purchase, police said. The man's image has been captured on electronic surveillance, and he has used the cards to buy more than $25,000 worth of railroad tickets, clothes and Target gift cards in Long Island and Queens, police said.

"It's a crime of opportunity," said Little, who added that police were increasing patrols and urging students and faculty to take basic safety precautions and report any suspicious activity. Anyone with information is asked to call Crime Stoppers at 800-220-TIPS. A cash reward of up to $5,000 is being offered for tips leading to an arrest.

Last fall, a rash of attacks on students prompted heightened security. In October, two students reported being accosted, one in her dormitory and the other while jogging. Two students also reported being robbed in separate incidents involving two men, one with a knife. One of those students was arrested later on a charge of falsely reporting a crime.

news source : http://www.newsday.com/news/local/crime/ny-lisuny0206,0,6742163.story

That hairshirt! I must have it

Heaven forbid that I should accuse the Centre for Policy Studies (founders, Keith Joseph and Margaret Thatcher) of having a sense of humour. But it could hardly choose a better week to launch its report Why Do We Feel So Broke? Today is not all pancakes: to the liturgically literate it is Shrove Tuesday, harbinger of Lent. Carnival excesses are merely carne vale, a farewell to fleshly pleasure. A Victorian Nonconformist summed it up with delicious February gloom:

There's winter on the hills today/ The sad wind soughs o'er churchyard knolls/ And weary nature seems to say/ “Tis Lenten-tide for sinful souls.”

Rather less poetically, the CPS says that stagnating earnings, tax increases, excessive debt, rising interest rates and utility bills are squeezing average family finances to the tune of £1,300 less disposable income. Rightish newspapers claim that the “coping classes” are only just scraping by on £88,000 a year, particularly if they dare not consign their young to a failing local school or their aged parents to the mercy of social services. Meanwhile left-wing commentators retort that if it's tough for them, it's worse for the poor. And for the nostalgic we have helpful figures showing that in unglamorous 1958 households spent a much larger percentage on booze, fags and fun.

Then, of course, there's the credit crunch and the banking panic, aggravated by the fact that it now looks as if the Government can't even give away Northern Rock by promising to pay its debts for ever. The latest amusing manifestation of this bankerly flap is from Egg, which (while still advertising its 0 per cent interest deals and instant loans, I notice) has abruptly sacked 161,000 credit card customers on the ground that they are “high risk”. Whereon hordes of them converged on media outlets, bristling with indignation and waving immaculate records of full monthly repayment, thus demonstrating that the “high risk” that worries the online bank is the risk of itself not making any money out of these spoilsport wise virgins.

That's the nub of it. Banks have flown high for 30 years by promoting carnival excess, and politicians have been glad of it because consumer booms create an illusion of general wellbeing. But too much of it is insubstantial puffball. I was in my twenties when the first popular credit cards appeared (before that only sugar-daddies had Barclaycard or Diners). I remember how Access scandalised the cautious with the brilliantly corrupting slogan “takes the waiting out of wanting”, a philosophy now embraced by everyone from Derek Conway's sons to the late-night lad whose knife takes the waiting out of his wanting your iPod.

A few years after that there was another frisson of scandal and (perfectly accurate) predictions of debt when supermarkets started letting shoppers use the plastic for food shopping. Now we know that we throw away a third of all the food we buy; join the dots. Credit card use was trumpeted as merely “convenient” and “secure” - which is indeed the case for the minority who pay off monthly in full and lose the banks money.

Mainly, credit has just helped to confuse the concept of money-I-have with the rival concept of stuff-I-want. It led us straight to the dreadful feature writers' insistence on applying the description “must have” to every luxury item, from flimsy shoes to £6,000 liposuction to reduce blokes' flabby chests (4,000 last year). Shouting “No, I bloody mustn't!” and throwing the Sunday supplements at the wall has had no effect on curbing this. Nationwide, plastic twinkles ever brighter until the inevitable moment when it melts. Now we have regular reports of mortgage interest and even tax payments being met by credit card.

Mortgages themselves went mad 20 years ago: I well remember dinner-party pundits saying that the only sensible thing was to take out as big a loan as you could get, preferably 100 or 105 per cent of house value, because on property you “never lose”. When I asked what would happen if prices dropped, there were pitying giggles as if I had suggested going back to a currency of cowrie shells.

And, to take the irrationality still further, we now know that bankers themselves can behave like students flashing their first plastic: step forward Adam Applegarth of Northern Rock, who lent out millions in money he didn't have but reckoned he could probably borrow. Until he couldn't. Thanks to a guilty panic by the Chancellor, the “coping” taxpayer classes will now lose thousands apiece to keep the Rock afloat in the cause of “consumer confidence”. Ironic, since consumer overconfidence got us in trouble in the first place.

But cheer up, coping classes. The architects of the liturgical year got it right: after Christmas comes Lent with fasting and repentance. The churches, I notice, are working up a more cheerful spin with a campaign “Love Life Live Lent”, trying to play down the austerity and associate the 40 days of wilderness with upbeat acts of kindness and wacky new Facebook applications. But they may be missing the Zeitgeist. My memory of convent-school Lents is actually rather satisfying: you give up a few pleasures, reacquaint yourself with mild hunger, remind your body that it is there to serve, not dominate, you, and make space for reflection, only occasionally dreaming of chocolate eggs to come.

That's the answer: wallow in the Lenten atmosphere. Put the waiting into wanting, ignore fashion, make sinister Spanish omelettes out of everything in the fridge including half-thawed oven-chips and aged broccoli. Bid farewell to luxury, carne vale, shrug on that must-have hairshirt. In a perverse way it might be quite fun.

news source : http://www.timesonline.co.uk/