NEW DELHI: In a development that could completely liberalise mobile commerce, the department of telecommunication (DoT) will soon write to the Reserve Bank of India (RBI) seeking guidance on linking telephone networks with banking services.
While the RBI recently announced certain guidelines for mobile banking in India, it only provides for a few basic banking services which can be undertaken through mobile phones. The new DoT move will allow consumers to virtually use mobile phone as a debit or credit card.
Sources told SundayET that the ministry would seek RBI's consultation to provide full-fledged mobile banking services to the customers, in line with discussion held between the 13th Finance Commission team and DoT officials on September 18, 2008. According to a senior DoT official, the ministry has so far not taken any initiative on linking telephone networks with banking services, but is keen on it as it will generate revenues, in addition to giving more value to telephone customers. "These services can increase the share of value-added services from the existing 7-8% of total revenues from the sector to almost about 25% which is the case in the developed countries," DoT said to the Commission's team. SundayET has a copy of the discussion paper prepared by DoT.
Explaining how the new initiative would help Indian consumers, Romal Shetty, director at KPMG India, said it would change the entire face of banking in the country. "So far, consumers can make only a few basic transactions through the mobile, but this will mean using your mobile as your credit or debit card. All you have to do is to send a message to make a payment," he said.
Mobile commerce in India has been limited primarily to basic banking transactions, purchase of travel tickets and payment of some utility bills, checking your account balance and last few transactions. Sanjiv Mittal, vice-chairman, Bharti Telesoft, that provides mobile banking facility to the customers in collaboration with Barclays Bank feels that both, banking and telecom industry, will have to come together to make mobile commerce a success in India. "There are certain laws to be considered regarding money remittances. Considering the IT security condition, coming together of both is a good sign," he said.
The DoT has informed the Finance Commission's team that revenues from auction of spectrum for 3G and BWA services could go up to Rs 30,000 cr. The 13th Finance Commission asked the DoT to give the revenue projection from the telecom sector between 2010 and 2015.
News Source : http://economictimes.indiatimes.com/
Monday, September 29, 2008
Saturday, September 27, 2008
Credit Card Companies Reducing Some Card Limits
You may start feeling the effects of the credit crisis, if you haven’t already. Many families are already relying on credit cards to pay their basic expenses, such as gas, groceries, bills. Now some banks and credit card companies are cutting back on the credit and loans they’re offering. You may soon find you have less credit available or can’t get a loan you need.
Counting on your credit card to make a major purchase? Check your credit limit first. Visa, Mastercard, and American Express are all lowering credit limits on some card holders to reduce the risk of customers not making payments. The New York TImes reports limit cuts are being placed on customers with heavy debt, who live in areas with high foreclosure rates, or work in troubled industries.
Certified Financial Planner Rick Van Der Noord says that could, and should, force families to change the way they spend. Said Van Der Noord, “If you have to use credit for your living expenses, it wasn’t smart and it’s not smart, but it might not even be an option at this point.”
But lowering your limit can reduce your credit score. It forces your debt to credit ratio to go down. That could mean paying higher interest rates on your other credit cards or a car or home loan. Not to mention if you overspend your new credit limit, you’ll be hit with fees.
But Stuart says students won’t see much if any change in Federal or State school loans. Said Stuart, “Most of our loans go through the South Carolina Student Loan Authority and their funding is fine.”
Stuart says Federal loans are still available but schools may have to find different banks to back those that are not backed by the government.
If you’re having trouble getting a student loan, Stuart says go back to your financial aid office. Many schools are now offering loans they fund themselves. You may also try using a co-signer for a private loan.
How can you fix your credit score if your credit limit has been lowered? Try asking the lender to raise it again. If you have a good payment history, point that out. Ask other cards for an increase, open a new account, or pay down the balance.
News Source : http://www.wspa.com/
Counting on your credit card to make a major purchase? Check your credit limit first. Visa, Mastercard, and American Express are all lowering credit limits on some card holders to reduce the risk of customers not making payments. The New York TImes reports limit cuts are being placed on customers with heavy debt, who live in areas with high foreclosure rates, or work in troubled industries.
Certified Financial Planner Rick Van Der Noord says that could, and should, force families to change the way they spend. Said Van Der Noord, “If you have to use credit for your living expenses, it wasn’t smart and it’s not smart, but it might not even be an option at this point.”
But lowering your limit can reduce your credit score. It forces your debt to credit ratio to go down. That could mean paying higher interest rates on your other credit cards or a car or home loan. Not to mention if you overspend your new credit limit, you’ll be hit with fees.
But Stuart says students won’t see much if any change in Federal or State school loans. Said Stuart, “Most of our loans go through the South Carolina Student Loan Authority and their funding is fine.”
Stuart says Federal loans are still available but schools may have to find different banks to back those that are not backed by the government.
If you’re having trouble getting a student loan, Stuart says go back to your financial aid office. Many schools are now offering loans they fund themselves. You may also try using a co-signer for a private loan.
How can you fix your credit score if your credit limit has been lowered? Try asking the lender to raise it again. If you have a good payment history, point that out. Ask other cards for an increase, open a new account, or pay down the balance.
News Source : http://www.wspa.com/
Friday, September 26, 2008
Credit card nightmares prompt long-awaited crackdown
WASHINGTON — What prompted a slew of new federal proposals to combat abusive practices in the credit card industry depends on whom you talk to in Washington.
Some say the new recommendations by the Federal Reserve Board were the result of congressional pressure and public outcry.
Others say that regulators, stung by their own inaction in the subprime mortgage meltdown, feared a similar mistake would cause the growing credit crisis to snowball.
While there's disagreement about what sparked the move, even the most jaded political observers now agree that, after years of complaints, relief is finally on the way for cardholders who feel victimized by their plastic.
"I've not seen anything like this out of the Federal Reserve ever," said Travis Plunkett, the legislative director of the Consumer Federation of America. "These problems have been coming up for a decade, and they've been asleep at the switch. But that's changing. It's a new world."
And not a moment too soon for such folks as Kathi Parlier of Newnan, Ga., whose credit card interest rate jumped from about 7 percent to 32 percent in 2004 after a property foreclosure damaged her credit rating. Parlier, 42, said she'd never made a late payment on the card.
"I could deal with it going to 12 to 15 percent, but considering I was never late, they never should have gone up on it like that," Parlier said. "They shouldn't be able to do that."
New rules proposed by the Fed wouldn't stop rate increases like Parlier's, which are known as "universal defaults." But they would prohibit card companies from applying the higher rate to the existing card balance — unless the cardholder was more than 30 days late on his or her bill.
That provision alone would have saved Parlier thousands of dollars. Her card balance was nearly $7,000 when the rate hike kicked in. The higher interest rate — now about 29 percent — means only a small portion of her payments go toward her debt.
"I paid $160 last month and $108 of that was finance charges, so I've only got $52 going to principal," Parlier said. "I always pay a little more than the minimum, otherwise I would never get it paid off."
The Fed's new recommendations were drafted in concert with the Office of Thrift Supervision and the National Credit Union Administration.
News Source : http://www.idahostatesman.com/
Some say the new recommendations by the Federal Reserve Board were the result of congressional pressure and public outcry.
Others say that regulators, stung by their own inaction in the subprime mortgage meltdown, feared a similar mistake would cause the growing credit crisis to snowball.
While there's disagreement about what sparked the move, even the most jaded political observers now agree that, after years of complaints, relief is finally on the way for cardholders who feel victimized by their plastic.
"I've not seen anything like this out of the Federal Reserve ever," said Travis Plunkett, the legislative director of the Consumer Federation of America. "These problems have been coming up for a decade, and they've been asleep at the switch. But that's changing. It's a new world."
And not a moment too soon for such folks as Kathi Parlier of Newnan, Ga., whose credit card interest rate jumped from about 7 percent to 32 percent in 2004 after a property foreclosure damaged her credit rating. Parlier, 42, said she'd never made a late payment on the card.
"I could deal with it going to 12 to 15 percent, but considering I was never late, they never should have gone up on it like that," Parlier said. "They shouldn't be able to do that."
New rules proposed by the Fed wouldn't stop rate increases like Parlier's, which are known as "universal defaults." But they would prohibit card companies from applying the higher rate to the existing card balance — unless the cardholder was more than 30 days late on his or her bill.
That provision alone would have saved Parlier thousands of dollars. Her card balance was nearly $7,000 when the rate hike kicked in. The higher interest rate — now about 29 percent — means only a small portion of her payments go toward her debt.
"I paid $160 last month and $108 of that was finance charges, so I've only got $52 going to principal," Parlier said. "I always pay a little more than the minimum, otherwise I would never get it paid off."
The Fed's new recommendations were drafted in concert with the Office of Thrift Supervision and the National Credit Union Administration.
News Source : http://www.idahostatesman.com/
Thursday, September 25, 2008
UPD seeks help in stolen credit card case
UTICA, N.Y. -- Utica Police are asking for your help in a grand larceny case. They are looking to identify three people who used stolen credit cards at different stores on December 9th of last year.
The first is a female wearing a tan coat with light brown or blond hair that used a stolen card at a Wal-Mart. The second person is described as a female wearing a black coat with dark hair. She used the cards at a Walgreen’s. They are also looking for a third person, a man.
Anyone with information about these people is asked to contact the Criminal Investigations Division by calling (315) 223-3510 or logging on to www.UticaPD.com.
News Source : http://news10now.com/
The first is a female wearing a tan coat with light brown or blond hair that used a stolen card at a Wal-Mart. The second person is described as a female wearing a black coat with dark hair. She used the cards at a Walgreen’s. They are also looking for a third person, a man.
Anyone with information about these people is asked to contact the Criminal Investigations Division by calling (315) 223-3510 or logging on to www.UticaPD.com.
News Source : http://news10now.com/
Monday, September 22, 2008
TransUnion.com Quarterly Credit Card Analysis Reveals That National Credit Card Debt Moves Up Again While Delinquency Rate Continues to Creep Downward
CHICAGO, Sept 16, 2008 /PRNewswire via COMTEX/ -- TransUnion.com released today the results of its analysis of trends in the credit card lending industry for the second quarter of 2008. The report is part of an ongoing series of quarterly consumer lending sector analyses focusing on credit card, auto loan and mortgage data that may be found on TransUnion's Web site.
Statistics
The recent first-quarter drop in average credit card debt was temporary, as data from second quarter 2008 shows a slight increase across the board geographically. National credit card debt per credit card borrower increased 2.63 percent to $1,717 from the previous quarter's $1,673, and 8.6 percent compared to the second quarter of 2007 ($1,581). The highest state average card debt per credit card borrower was in Alaska at $2,494, followed by Tennessee at $2,109 and Alabama at $2,015. The lowest average credit card debt per credit card borrower was found in Iowa ($1,281), followed by North Dakota ($1,318) and South Dakota ($1,388).
The steepest increases in average credit card debt over the previous quarter occurred in the District of Columbia (6.62 percent), Alaska (4.84 percent) and Tennessee (4.75 percent). Alabama experienced the smallest increase in its average credit card debt (0.49 percent), followed by North Carolina (0.73 percent) and West Virginia (0.82 percent).
On a positive note, the national credit card delinquency incidence rate (the ratio of borrowers 90 or more days past due) continued to decline for the second quarter in a row.
Nationally, the ratio of credit card borrowers delinquent on one or more of their credit cards declined to 1.04 percent in the second quarter of 2008, down 12.6 percent over the previous quarter. However, on a year-over-year basis the national delinquency incidence rate has risen 14.3 percent from 0.91 percent in the second quarter of 2007. Incidence of delinquency was highest in Nevada (1.72 percent), followed closely by Florida (1.34 percent) and Mississippi (1.30 percent). The lowest credit card delinquency incidence rates were found in North Dakota (0.59 percent), Vermont (0.68 percent) and Utah (0.70 percent). Quarter-over-quarter delinquency incidence rates dropped across the board. Nevada experienced the smallest drop in delinquency (-1.15 percent), while the District of Columbia's delinquency incidence rate dropped the most (-28.2 percent) from the previous quarter.
News Source : http://www.marketwatch.com/
Statistics
The recent first-quarter drop in average credit card debt was temporary, as data from second quarter 2008 shows a slight increase across the board geographically. National credit card debt per credit card borrower increased 2.63 percent to $1,717 from the previous quarter's $1,673, and 8.6 percent compared to the second quarter of 2007 ($1,581). The highest state average card debt per credit card borrower was in Alaska at $2,494, followed by Tennessee at $2,109 and Alabama at $2,015. The lowest average credit card debt per credit card borrower was found in Iowa ($1,281), followed by North Dakota ($1,318) and South Dakota ($1,388).
The steepest increases in average credit card debt over the previous quarter occurred in the District of Columbia (6.62 percent), Alaska (4.84 percent) and Tennessee (4.75 percent). Alabama experienced the smallest increase in its average credit card debt (0.49 percent), followed by North Carolina (0.73 percent) and West Virginia (0.82 percent).
On a positive note, the national credit card delinquency incidence rate (the ratio of borrowers 90 or more days past due) continued to decline for the second quarter in a row.
Nationally, the ratio of credit card borrowers delinquent on one or more of their credit cards declined to 1.04 percent in the second quarter of 2008, down 12.6 percent over the previous quarter. However, on a year-over-year basis the national delinquency incidence rate has risen 14.3 percent from 0.91 percent in the second quarter of 2007. Incidence of delinquency was highest in Nevada (1.72 percent), followed closely by Florida (1.34 percent) and Mississippi (1.30 percent). The lowest credit card delinquency incidence rates were found in North Dakota (0.59 percent), Vermont (0.68 percent) and Utah (0.70 percent). Quarter-over-quarter delinquency incidence rates dropped across the board. Nevada experienced the smallest drop in delinquency (-1.15 percent), while the District of Columbia's delinquency incidence rate dropped the most (-28.2 percent) from the previous quarter.
News Source : http://www.marketwatch.com/
Tuesday, September 16, 2008
NJ bill restrict campus credit card solicitations
TRENTON, N.J. - A proposal that would set limits on credit card solicitations on New Jersey college campuses has advanced.
The bill's sponsors said the measure would help protect the credit ratings of students and their parents by allowing the Division of Consumer Affairs to regulate how credit card companies solicit applications on campuses.
"When used properly, credit cards can be a great financial tool," said the bill co-sponsor, Assemblywoman Sandra Love, D-Camden. "Unfortunately, many college students do not understand how credit works and wind up getting themselves and their parents into financial trouble by spending more than they can possibly pay."
The bill would require credit card companies to register on campus before soliciting students. It would also mandate that they provide education on the responsible use of credit before issuing cards to students.
The bill would bar credit card companies from buying lists of students' names and addresses and from offering gifts in exchange for opening an account.
It also would bar companies from taking action against parents of students who fail to pay, unless the parent previously agreed to be responsible for the debt.
The legislative proposal cites a four-year-old study conducted by the national student loan company, Nellie Mae, which found more than half of the college students surveyed had four or more credit cards with an average total debt of $2,864.
"Casual, uninformed use of credit can have long-lasting financial implications," said co-sponsor Pam Lampitt, D-Camden. "Requiring credit card companies to ensure that college students understand how credit works before they apply for a credit card will go a long way toward making New Jersey undergraduates more savvy consumers."
Though some lawmakers expressed concern about how the educational component of the bill would be delivered _ some asked whether could credit card solicitors would satisfy the requirement by giving students literature to take home and read, for example _ the measure advanced by a vote of 3-1 with 1 abstention.
It now heads to the Assembly speaker for possible consideration by the entire Assembly. A similar bill awaits a hearing in the Senate Commerce Committee.
News Source : http://www.newsday.com/
The bill's sponsors said the measure would help protect the credit ratings of students and their parents by allowing the Division of Consumer Affairs to regulate how credit card companies solicit applications on campuses.
"When used properly, credit cards can be a great financial tool," said the bill co-sponsor, Assemblywoman Sandra Love, D-Camden. "Unfortunately, many college students do not understand how credit works and wind up getting themselves and their parents into financial trouble by spending more than they can possibly pay."
The bill would require credit card companies to register on campus before soliciting students. It would also mandate that they provide education on the responsible use of credit before issuing cards to students.
The bill would bar credit card companies from buying lists of students' names and addresses and from offering gifts in exchange for opening an account.
It also would bar companies from taking action against parents of students who fail to pay, unless the parent previously agreed to be responsible for the debt.
The legislative proposal cites a four-year-old study conducted by the national student loan company, Nellie Mae, which found more than half of the college students surveyed had four or more credit cards with an average total debt of $2,864.
"Casual, uninformed use of credit can have long-lasting financial implications," said co-sponsor Pam Lampitt, D-Camden. "Requiring credit card companies to ensure that college students understand how credit works before they apply for a credit card will go a long way toward making New Jersey undergraduates more savvy consumers."
Though some lawmakers expressed concern about how the educational component of the bill would be delivered _ some asked whether could credit card solicitors would satisfy the requirement by giving students literature to take home and read, for example _ the measure advanced by a vote of 3-1 with 1 abstention.
It now heads to the Assembly speaker for possible consideration by the entire Assembly. A similar bill awaits a hearing in the Senate Commerce Committee.
News Source : http://www.newsday.com/
Friday, September 5, 2008
Credit card forgery racket busted
KOLKATA: City police busted an inter-state credit card forgery racket on Wednesday and nabbed two people who supplied card details to racketeers. However, the kingpin managed to evade the police net.
The forgery came to light when two customers of a private bank lodged a complaint with bank officials that fraudulent transactions worth Rs 1.18 lakh had been made on their cards. One of the complainant is the branch manager of the same bank. The bank lodged a complaint with Alipore police station on Wednesday afternoon with transaction details.
During the probe, police found that the transactions were made after August 29 on the internet. Though the illegal transactions were made from different places - complainant Sanjay Malhotra's card was used in Pune, while Sandeep Chakraborti's was used in New Delhi - the statements showed certain similarities.
Both cards were used to purchase materials from the same company (a telecom major ). Also, the complainants had used their cards last at an Alipore shopping mall.
Investigating officers Prithwiraj Bhattacharya and V Mukherjee of Alipore police found that during the last legal transactions on both cards, Mritunjay Mishra was the mall staff, who had swiped both cards.
Police picked up Mishra, a business management student . During interrogation he broke down and admitted that he used to copy the details of the credit cards. "For the last two months he had copied detail like name, card number and validity of many cards," said an officer.
Police said Mishra supplied the details to Amit Mishra, a cellphone mechanic at Fancy Market in Kidderpore. Amit was nabbed later in the day. Sleuths said later that both Amit and Mritunjay were minor players in the racket.
Amit told police that a few months back he met a youth named Amren, who claimed to be a resident of Delhi. He offered to pay Amit Rs 500 for the details of each card. "Amren would verify the authenticity of each card before paying Amit," said an officer. Police are looking for Amren. They also seized the details of six more cards from Amit.
In another fraud case, a retired government employee, Nalini Mohanti, was arrested for duping may people to the tune of Rs 30 lakh. Officers at Gariahat police station received two complaints against Mohanti and his kin. Mohanti, his daughter Sutapa and son-in-law Sandeep allegedly lured people to invest money in stocks with the assurance of double returns.
When the investors didn't get returns, they lodged complaints . Mohanti's daughter an son-in-law are absconding.
News Source : http://timesofindia.indiatimes.com/Kolkata_/Credit_card_forgery_racket_busted_/articleshow/3446476.cms
The forgery came to light when two customers of a private bank lodged a complaint with bank officials that fraudulent transactions worth Rs 1.18 lakh had been made on their cards. One of the complainant is the branch manager of the same bank. The bank lodged a complaint with Alipore police station on Wednesday afternoon with transaction details.
During the probe, police found that the transactions were made after August 29 on the internet. Though the illegal transactions were made from different places - complainant Sanjay Malhotra's card was used in Pune, while Sandeep Chakraborti's was used in New Delhi - the statements showed certain similarities.
Both cards were used to purchase materials from the same company (a telecom major ). Also, the complainants had used their cards last at an Alipore shopping mall.
Investigating officers Prithwiraj Bhattacharya and V Mukherjee of Alipore police found that during the last legal transactions on both cards, Mritunjay Mishra was the mall staff, who had swiped both cards.
Police picked up Mishra, a business management student . During interrogation he broke down and admitted that he used to copy the details of the credit cards. "For the last two months he had copied detail like name, card number and validity of many cards," said an officer.
Police said Mishra supplied the details to Amit Mishra, a cellphone mechanic at Fancy Market in Kidderpore. Amit was nabbed later in the day. Sleuths said later that both Amit and Mritunjay were minor players in the racket.
Amit told police that a few months back he met a youth named Amren, who claimed to be a resident of Delhi. He offered to pay Amit Rs 500 for the details of each card. "Amren would verify the authenticity of each card before paying Amit," said an officer. Police are looking for Amren. They also seized the details of six more cards from Amit.
In another fraud case, a retired government employee, Nalini Mohanti, was arrested for duping may people to the tune of Rs 30 lakh. Officers at Gariahat police station received two complaints against Mohanti and his kin. Mohanti, his daughter Sutapa and son-in-law Sandeep allegedly lured people to invest money in stocks with the assurance of double returns.
When the investors didn't get returns, they lodged complaints . Mohanti's daughter an son-in-law are absconding.
News Source : http://timesofindia.indiatimes.com/Kolkata_/Credit_card_forgery_racket_busted_/articleshow/3446476.cms
Wednesday, September 3, 2008
American Express tops credit card satisfaction poll
NEW YORK (Reuters) - American Express Co ranked highest in consumer satisfaction among U.S. credit card issuers for the second straight year, according to a J.D. Power and Associates poll released on Wednesday, which cited its benefit and reward programs.
American Express, the fourth-largest U.S. credit card issuer, was followed in the rankings by Discover Financial Services.
Both American Express and Discover improved their performance from last year's survey and were the only two companies whose scores topped the industry average in the poll.
JPMorgan Chase & Co, Citigroup Inc and Bank of America Corp appeared in the fourth, seventh and ninth positions in the rankings, respectively, according to J.D. Power, a unit of McGraw-Hill Cos.
The poll, conducted in April and May, received responses from 7,665 credit card users.
source : http://www.reuters.com
Subscribe to:
Posts (Atom)