Report shows that both consumer spending and personal income increased in May
Consumer spending accounts for nearly 70 percent of the economy and is often used to determine the strength of economic recovery. Read full article…
The Australian Securities and Investments Commission (ASIC) has received applications for credit provider licences ahead of its assumption of regulatory control on Thursday (July 1st), it has been revealed.
ASIC will take over regulation of all consumer lending, including credit cards, store cards and mortgages from that date, thus replacing the state-by-state approach, the Sydney Morning Herald reported.
As the newspaper observed, lenders previously accused of “predatory lending” practices have already lodged applications with ASIC to secure new licences under the body.
These include Permanent Mortgages, a lending entity within La Trobe Financial, which was found this year by the Supreme Court of Western Australia to have dealt unconscionably with an 85-year-old woman. Read full article…
SOUTH BEND —Two former Madison Center employees have filed a whistleblower’s lawsuit, alleging the organization defrauded the state of more than $10.7 million by filing bogus Medicaid claims.
The suit, filed by former employees Jean Marie Thompson, a psychologist, and Kathleen McCoy, a therapist, alleges that Madison Center from 2000 through 2003 filed false claims, with fraudulent intent, for care purportedly given to children.
According to the suit, the false claims included:
“Madison Center’s illegal conduct amounts to a fraudulent scheme to enrich itself and key employees at the expense of the Medicaid program without serving the needs of the at-risk population of children it purports to serve,” the suit alleges. “
Nearly two years ago, I blogged on this site about some of the financial challenges I faced while on a two-week trip in Europe. Other than pay toilets and the large minimum amount required to use a credit card, an issue I frequently encountered in France was the lack of acceptance of American credit cards on the metro ticket machines.
 Chip-and-PIN cards, which are popular in Europe, hold a very special place in Emily’s heart. |
Come August 22, there will be a series of new rules in place, intended to further protect credit card holders, thanks to the good people at the Federal Reserve.
Late Fees Capped at $25
Late fees will generally be capped at $25, instead of the near-$40 currently charged by many of the nation’s leading credit card issuers.
There will be exceptions if the card holder is a repeat offender, or if the card issuer can prove the higher fee is reasonable.
Fees Cannot Exceed Dollar Amount Tied to Violation
Card issuers will also be prohibited from charging a fee that exceeds the dollar amount associated with the consumer’s violation.
For example, a card issuer can’t charge a $25 late fee if the card holder’s missed minimum payment is only $20.
Same with an over-the-limit fee – if you only go over by $5, the card issuer can only charge $5.
Multiple Fees on Single Violations Prohibited
Additionally, card issuers will not be able to charge multiple fees for a single violation, such as a single missed payment.
Inactivity Fees Banned
Credit card issuers will also be barred from charging “inactivity fees,” a strategy that was actually recently employed to recoup losses from the first set of new credit card rules.
Finally, card issuers who raised consumer’s rates since January 1, 2009 will need to evaluate if the reason(s) behind the increase has changed, and if so, reduce the rates.
I wonder how the credit card issuers will make up for all the lost profit? Look out for new tricks folks…
