This Week In Credit Card News: Errors In Your Credit Report?, Citi Credit Card Breach, Avoid Credit Card Problems Abroad

Image via Wikipedia

Provided by LowCards.com

Are Serious Errors Lurking in Your Credit Report?

A recent study, conducted by the Policy and Economic Research Council, found potential errors in 19.2 percent of credit reports examined. But once consumers disputed potentially problematic errors and got the bureaus to fix them, less than 1 percent of these corrected reports led to meaningful increases in credit scores. Few of the corrections led to a big enough credit score gain to push those consumers into a better “credit risk tier,” where they would have access to cheaper loans on credit cards, homes and automobiles. [New York Times]

Citi Credit Card Breach Discovered

Citigroup said a security breach occurred last month and affected about 200,000 customers. The statement went on to say that the customers’ Social Security numbers, dates of birth, card expiration dates and card security codes “were not compromised.” [CNN Money]

Senate Rejects Delay of Debit Interchange Fee Cap

The Senate struck a blow against big banks by failing to pass a measure that would have postponed the implementation of reduced debit card interchange fees. The legislation would have required a delay to study the unintended consequences of capping the swipe fee. The cap is a new regulation under the Durbin Amendment. The Federal Reserve Board is now working on final debit card interchange rules which are expected to be released by the end of the month. The new fees are scheduled to take effect on July 21. [LowCards.com]

How to Avoid Credit Card Problems Abroad

American travelers will continue to encounter payment issues abroad. The best option is to carry a couple of cards in our wallets and politely insist that the cashier keep trying to swipe each credit card, as the card reader may be able to recognize the magnetic strip and approve the purchase. Also consider carrying a preloaded debit MasterCard from Travelex called Chip and PIN Cash Passport. But use it only when you can’t use other cards because the exchange rates you’ll get when loading it with cash aren’t great. You can also purchase tickets online before you go. When you return home, be sure to let your bank know about any payment problems. [New York Times]

Regions Dives Back into Credit Cards

Regions Financial has re-entered the credit card business by re-acquiring a $1 billion credit card portfolio from FIA Card Services, a Bank of America subsidiary, for an undisclosed amount. [The Street]

Consumer Borrowing Increased 3.1% in April

Consumer borrowing increased in April, but credit card use has fallen nearly 19 percent in the last 20 months and has dropped 5 percent in the last year. High unemployment, steep gas prices and a weakening housing market have also forced people to resist reaching for their plastic. [Associated Press]

Chicago Mayor Orders City Agency Employees to Stop Using Government-Issued Credit Cards

Mayor Rahm Emanuel ordered city sister agency employees to immediately stop using government-issued credit cards because some workers used the cards to pay for meals at pricey restaurants, flowers and city-issued red-light camera tickets. He said he was “suspending all employee reimbursement plans until reformed policies for reimbursement are adopted.” [Chicago Sun Times]

LowCards.com Weekly Credit Card Rate Report

Based on the 1000+ cards in the LowCards.com Complete Credit Card Index, the average advertised APR for credit cards is 13.96%, slightly above last week’s average of 13.95%. Six months ago, the average was 13.81%. One year ago, the average was 13.61%. [LowCards.com]