Senator Bernie Sanders and Rep. Alexandria Ocasio-Cortez will introduce legislation on Thursday to cap credit card interest rates at 15%, a steep reduction from current levels. Sanders said that a decade after taxpayers bailed out big banks, the industry is taking advantage of the public by charging exorbitant rates. The proposal is sure to meet stiff resistance from the banking industry, which brought in $113 billion in interest and fees from credit cards last year, up 35% since 2012, according to S&P Global Market Intelligence.
Signup Bonuses are Eclipsing APR as Credit Cards’ Biggest Lure
In a CreditCards.com survey of millennials, signup bonuses of at least $500 in cash or $1,200 in travel credit are considered the most attractive feature for a credit card. This is a change compared to older generations who prefer debt
Citi Wants to Bring Credit Card Perks Like Miles to Bank Accounts
Citigroup is the world’s biggest credit card issuer. Yet many of those 28 million clients park their savings elsewhere. Now, Citi is fighting back. The firm is expanding perks designed for credit cards to encourage sales of other banking products. In recent months, the company privately offered some cardholders 30,000 airline points to sign up for an online checking account. And this quarter, it plans to enhance its Thank You and Double Cash reward programs for select cardholders to encourage them to sign up for more products and services.
Consumers More Satisfied with No Annual Fee Cards
Two-thirds of consumers (66%) take into consideration whether a card has an annual fee when deciding to apply for that card, and 60% said having no annual fee is a major factor in their decision process, according to a new Discover survey. Among respondents who were currently considering switching credit cards, 54% said the reason was to avoid paying an annual fee, the top reason given. More than a third of respondents (37%) have already closed a credit card because it has an annual fee. About a third of respondents who chose a card with an annual fee began to regret it after the one-year mark of having the card.
Mastercard CEO Says It’s Not the Company’s Place to Limit Gun Sales
Mastercard CEO Ajay Banga said it’s not his company’s place to put limits on firearm sales. In fact, it doesn’t even have the information it needs to stop such purchases. “I actually don’t know whether you’re buying a gun or a diaper in a store,” Banga said, adding that Mastercard doesn’t receive information on individual items purchased at a retailer. It would be difficult for Mastercard “to turn off the acceptance of payments at a Walmart that sells bullets and diapers. I don’t know how to do it.”
Many Parents of College-Bound Kids Still Paying Off Own Student Loans
Student loans can be a financial burden that may cripple families for years to come. A recent study found that 44% of the families paying for their child’s college tuition were also still paying off their own student loans. Nearly one in three (32%) parents say they use a credit card more often because of their college-related payments. And 74% of the respondents say they have put off a major purchase, such as a car or vacation, to pay for education. Almost half of the parents surveyed (47%) said that college expenses will cause them
Google to Allow Users to Pay for Android Apps Using Cash
Today, the Android platform sees more app downloads than iOS, but Apple’s App Store continually dominates in terms of revenue. Now, Google is aiming to narrow the revenue gap by introducing a new way for users in emerging markets to pay for apps: with cash. The company announced it’s launching “pending transactions,” which offers users different ways to pay that don’t require a credit card or any other traditional form of online payment.
Cybersecurity Jobs Abound. No Experience Required.
As companies struggle to fill hundreds of thousands of open cybersecurity jobs around the U.S. they are casting a wider net to find and develop experts, pursuing workers without traditional four-year degrees or formal experience to help them protect computer networks and customer data. Facing a shortage of skilled workers to defend against digital attackers, employers are pouring millions of dollars into new partnerships with universities and training programs.
Banks Keeping Riskier Credit Card Loans With Losses Creeping Higher
More U.S. consumers are defaulting on their credit cards, but banks may be holding onto the riskiest loans instead of passing them off to investors. The credit card loans that banks bundle into bonds and sell to investors are outperforming the loans that lenders have held onto, according to Barclays analyst Alin Florea. Banks are writing off bad card loans on their books at the highest rate since 2012, and losses are outpacing those for auto and home loans.
Credit Unions Gain Share of Credit Cards & Auto Loans
Credit unions built their portfolios of consumer loans more than twice as fast as other lenders in March as they increased their share of credit cards and auto loans. The Fed’s G-19 Consumer Credit Report released Tuesday showed credit unions held $61.5 billion in credit card debt on March 31, up 8.1% from a year earlier. Lenders of all types held $1 trillion in credit card debt, up 3.4% from a year earlier. Credit unions’ share was 6.1% in March, up from 5.9% a year earlier.