What’s behind rising delinquencies on private-label credit cards
It’s not just weaker underwriting and higher household debt levels that are driving past-due rates to their highest levels in seven years.
By
Andy Peters
Payments
Lenders retreat from subprime consumer credit as losses mount
The post-recession boom in auto loans and credit cards for borrowers with marred credit histories has been winding down in recent months.
Not-so-friendly competition: Discover CEO bashes online lenders
David Nelms said that many digital lenders do not understand how to underwrite personal loans properly, and he took a dig at their lack of profitability. The upstarts say their industry's ability to attract capital speaks for itself.
Credit card debt hits all-time high of $1.023 trillion: Fed
The milestone marks the end of a seven-year-long recovery in the credit card market that followed the Great Recession.
Retailers score latest win in fight to allow credit card surcharges
Merchants have been challenging surcharge bans in numerous states on free-speech grounds. They have the wind at their backs following another court victory on Wednesday.
Chasing rewards: Credit card use accelerates as debit slows
Both in dollar and transaction volume, credit card use is growing at a faster pace than debit use. Much of the growth is coming from affluent consumers who value rewards like 2% cash back on purchases.
Amex returns to its roots in acquiring Citi’s Hilton cards, adding small-biz perks
American Express will become the exclusive issuer of Hilton Honors cobranded credit cards in January, taking over the entire portfolio it previously shared with Citigroup.
Discover’s profit falls in 3Q as loan losses rise
As more loans go bad across the credit card industry, the Riverwoods, Ill.-based company boosted its provision for loan losses by 51%.
Credit card aimed at thin-file consumers rebrands, raises $12M
Deserve is offering unsecured cards to young adults who do not have traditional credit scores. The Silicon Valley startup uses a proprietary algorithm that analyzes bank account activity to evaluate the likelihood that borrowers will repay.
Amex will need to convince justices that its rules help consumers
In a surprise move, the Supreme Court will decide whether Amex may bar merchants from steering customers to less expensive card networks. The card issuer will have to prove the consumer gain from its practices outweighs the merchant pain.
Don’t get too comfortable with the ‘pause’ in subprime lending
Auto, personal and credit card originations have fallen as delinquencies have risen, but researchers called the slowdown a temporary rebalancing by lenders.
By
Yemeng Yang
Credit card delinquencies: A fair price for growth, or bad sign?
Balances 90 days past due are noticeably higher in 2017, new N.Y. Fed data shows. Though the trend has a lot to do with positives like economic expansion and easier access to credit, officials say it deserves careful attention.
Delinquencies on car loans, credit cards at highest levels since 2012
A new report from the American Bankers Association reinforces existing concerns about the ability of U.S. consumers to manage all of their debts.
Credit card issuers face peril from rise in store closures: Report
Synchrony Financial and Alliance Data Systems are particularly vulnerable to recent shifts in Americans’ shopping habits, according to new research from Moody’s Investors Service.
