Finance News From Around The Globe
From the category archives:
By Eva Norlyk Smith, Ph.D.
The race is on, or so it seems, to come up with the best mobile phone device for swiping and processing credit cards. Mophie, a manufacturer of accessories for the iPhone and iTouch, has announced that it will introduce a new add-on credit card reader, which enables small businesses to swipe and process credit cards on the spot.
The Mophie reader works through a small device attached… Continue reading
By Eva Norlyk Smith, Ph.D.
People looking to start a home improvement project often wonder which are the best sources of financing. Many people turn to banks for a loan, however, most banks require you to have equity built up in your house in order to approve you for a loan. Plus, if your home improvement project is fairly small, the hassle of applying for a bank loan and the high… Continue reading
By Eva Norlyk Smith, Ph.D.
True or false: Did rock singer Courtney Love take out 104 American Express cards, charge $352,059.67 to them, and then refuse to pay off the charges?
In a real-life mystery that would have even Robert Downing Jr.’s indomitable Sherlock Holmes scratching his head, American Express is suing rock singer Courtney Love for $352K in charges to credit cards issued in her name. Love, in turn, is countersuing… Continue reading
By Eva Norlyk Smith, Ph.D.
If you followed the YouTube overnight sensation, “United Breaks Guitars,” you know how quickly customer-dissatisfaction-turned-viral-video can turn into a public relations nightmare for a company. In the video, singer-composer Dave Carroll describes his unsuccessful attempts to get United Airlines to reimburse him for breaking his Taylor guitar during a flight from Nova Scotia to Nebraska.
After trying for a year to get United to cover the repair… Continue reading
By Eva Norlyk Smith, Ph.D.
Despite rising security efforts, internet credit card fraud remains a leading threat. According to experts, the cost of cyber crime to the global economy may soon reach $1 trillion in losses – and the cost to the U.S. alone is estimated at nearly $8 billion.
While government officials and law enforcers are working hard to make the cyberspace more secure for consumers and merchants alike, individual cardholders… Continue reading
By Eva Norlyk Smith, Ph.D.
September 11, 2009 was a landmark day in its own right. On this day, Alberto Gonzales, the hacker masterminding the cyber theft of more than 170M credit card numbers, pleaded guilty to 19 counts of computer and wire fraud, conspiracy, and aggravated identity theft.
The guilty plea is a first step toward closing the chapter on two of the largest ever instances of credit card fraud in… Continue reading
Authorities came one step closer to closing the chapter on the largest ever credit card theft in the U.S. on Tuesday, when Alberto Gonzales, a 28 year-old Florida resident, pleaded guilty to two counts of conspiracy in a federal court in Boston.
Together with his co-conspirators, Gonzales in 2008 masterminded data breaches at New Jersey-based Heartland Payment Systems, Inc., along with retailers 7-Eleven, Inc., and Hannaford Brothers Co. which compromised an… Continue reading
By Eva Norlyk Smith, Ph.D.
For credit cardholders, 2009 was a year like none before, as credit card companies pulled in the reins and consumers were faced with sky-rocketing interest rates, slashed credit limits, and otherwise tightened credit terms.
Alas, the risky lending environment that caused card issuers to tighten the reins in 2009 is likely to continue in 2010. Add to that the new consumer protections that step into effect with… Continue reading
By Eva Norlyk Smith, Ph.D.
Queen Elizabeth II of England in 1992 immortalized the term annus horribulus, in describing the year in which all her three children faced breakup of their marriages, and her son Prince Charles became the first Prince of Wales ever to break with decorum and initiate divorce proceedings.
Tiger Woods, for one, will recognize the Queen’s sentiments and happily wave good riddance to 2009. And so will credit… Continue reading
By Eva Norlyk Smith, Ph.D.
New credit rules set by the Fed on Tuesday will require lenders to notify consumers applying for credit cards, mortgages, or car loans if they are offered less favorable loan terms because of their credit history and credit score.
Lenders don’t just base their loan decision on applicants’ credit report, they also price the loans according to the risk profile indicated in the report. Typically, both the… Continue reading
By Eva Norlyk Smith, Ph.D.
The Federal Reserve is contemplating new rules for issuing credit cards, which could put at risk instant store credit cards and seriously cram the style of large retailing chains like Macy’s, Saks, Talbots, Best Buy, and others.
If enacted, the new rules could require retailers to collect detailed financial information from consumers applying for a store credit card, including information about their income and assets. Currently, consumers… Continue reading
By Eva Norlyk Smith, Ph.D.
If you are enrolled in a frequent flier or have been accumulating miles on an airline rewards credit card, you may have already noticed that while it’s easy to collect big mileage bonuses, cashing them in is a whole other story. Firstly, finding an available seat when you go to book your free ticket may not be that easy. Even worse, the miles you thought you… Continue reading
By Eva Norlyk Smith, Ph.D.
If subprime credit card issuers have their way, the bad credit cards of the past may end up looking like alter boys compared to the thugs of the NEW bad credit cards.
According to the Associated Press, subprime credit card issuer First Premier bank in a recent mailing floated a test offer for a preapproved credit card for people with bad credit. Unlike most so-called fee-harvester subprime… Continue reading