Personal Finance and Money Management

Credit card companies are tricking consumers with unsatisfactory solicitations, Senator Charles Schumer (D-NY) explained in a letter sent to the Federal Reserve on Wednesday. In his letter, he revealed that the number of professional and business credit cards sent to consumers skyrocketed in the first quarter because they don’t have to same protections as personal cards.

Are Credit Card Issuers Trying to Bypass the Law?

Despite the many changes that have occurred as a result of the Credit CARD Act, card issuers have apparently been determined to find ways to lure in customers while avoiding all of the rules they’re meant to abide by.

Since many of the guidelines listed in the act don’t apply to business credit cards, companies have opted to distribute new and exciting business and professional credit card offers to non-business consumers, rather than focusing on personal cards.

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According to the Free Financial Dictionary, credit score is defined as,

A credit score is a numerical expression based on a statistical analysis of a person’s credit files, to represent the creditworthiness of that person, which is the perceived likelihood that the person will pay debts in a timely manner. A credit score is primarily based oncredit report information, typically sourced from credit bureaus / credit reference agencies.

In laymen’s terms, a credit score is an at-a-glance measure of risk for banks. The higher the number, the less risky you are to lend to or be given the ability to charge purchases to a line of credit.

In the USA, there are three main institutions that calculate this figure for you: Equifax, TransUnion and Experian. Eac

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For the fourth year in a row, American Express has topped the charts in the 2010 J.D. Power and Associates U.S. Credit Card Satisfaction Study.

Released last week, the study indicates that AmEx received a customer service ranking of 769 on a 1,000 point scale, which was 12 points higher than the runner up—Discover Card. In addition, AmEx was the only credit issuer to receive five out of five J.D. Power.com Power Circles. Bringing up the rear for the ten major credit issuers analyzed in the study was HSBC, which received a ranking a 686 and just two out of five power circles.

I can’t say I’m surprised to see American Express at the top of the list again. In th

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Overdraft penalty fees were, until recently, were automatic when a zealous consumer went on a shopping spree that put their credit card account over the limit. Overdraft fees could be upwards of $34 and imposed for simply going over by $1. But with new legislation recently enacted by Congress, written to protect consumers from unreasonable charges and fees, banks can no longer charge those fees without the account holder giving authorization. Many consumers may be confused when they receive official looking notification requesting that they provide authorization for overdraft protection. The request is often written in a tone to instill fear or to imply that it is in the customer’s best interest. B

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