DUBLIN (Reuters) - The liquidation vehicle for Ireland's failed Anglo Irish Bank has been granted bankruptcy protection in the United States, it said on Wednesday.
The bank, whose failure cost Irish taxpayers some 30 billion euros ($41 billion) in the financial crisis, was put into an accelerated liquidation process during an emergency session of Ireland's parliament in February.
Now known as Irish Bank Resolution Corp, or IRBC, the liquidating bank applied in August for U.S. court protection to prevent creditors from going after more than $1 billion in U.S. assets.
Liquidator Kieran Wallace of KPMG confirmed that IBRC was granted protection under Chapter 15 of the U.S. bankruptcy code in the district of Delaware.
"We got recognition," he said, declining further comment.
The court did not immediately release a written opinion.
The recognition was opposed by property developer John Flynn, an Irish resident of Florida.
The decision will freeze Flynn's lawsuit in Manhattan, where he is suing to recover $11 million he claims he was overcharged by Anglo Irish.
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(Reuters) - The New Jersey attorney general sued a unit of Swiss bank Credit Suisse Group AG on Wednesday and accused it of misrepresenting the risks on more than $10 billion in securities backed by home loans.
Credit Suisse did not disclose that the loan originators it used had poor track records of defaults and delinquencies, and that some had been suspended from doing business with the bank, the state said in its lawsuit.
Credit Suisse's own traders were not willing to hold the securities on the bank's books, yet the bank was selling them to investors, it said.
The bank was also reimbursed tens of millions of dollars by loan originators for defective loans, but didn't pass those funds along to the trusts that owned them, it said.
"The kind of conduct described in this lawsuit is the kind of conduct that helped put the nation in financial crisis," John Hoffman, the acting attorney general in New Jersey, said in a statement.
A Credit Suisse representative said the complaint is without merit. "It recycles baseless claims and uses inaccurate and exaggerated figures," spokesman Drew Benson said. "We look forward to presenting our defense in court."
The attorney general in New York filed a similar case against the bank in November 2012. Credit Suisse in currently fighting that lawsuit.
Reuters reported on Tuesday that the U.S. Justice Department is also actively investigating Credit Suisse's representations on mortgage securities it sold in the run-up to the financial crisis.
(Reporting by Aruna Viswanatha and Emily Flitter; Editing by Gerald E. McCormick and Meredith Mazzilli)
Company Legal & Law MattersFinanceCredit SuisseBy Angela Moon
NEW YORK (Reuters) - Stocks were little changed on Wednesday as the market cautiously awaited Federal Reserve's last policy announcement of the year which might determine the immediate future of its current program to stimulate the economy.
The Federal Open Market Committee will release a statement at 2 p.m. (1900 GMT). Fed Chairman Ben Bernanke will follow the announcement with his final news conference at the helm of the U.S. central bank about 2:30 p.m.
Many expect the Fed to continue its quantitative easing program at the current pace of $85 billion monthly asset purchases into next year. But stronger economic data recently has led some to believe now is the time to begin to take off the training wheels of the recovering economy and allow it gradually to grow on its own.
"We expect tapering in the first quarter of next year. Today's announcement will be whether they will signal that today or wait until Janet Yellen" becomes Fed chief, said Jim Russell, senior equity strategist at U.S. Bank Wealth Management.
The CBOE Volatility index VIX <.VIX>, which usually moves inversely to the S&P 500 index, was down 0.3 percent at 16.71, after falling nearly 3 percent earlier. The index gained more than 14 percent last week as investors speculated when the Fed would start tapering its stimulus.
"There is a lot of protection built into the market already. Now people are asking, what if the Fed says exactly what is expected? The fear (of immediate taper) is dissipating and trades are adjusting their positions (in VIX)," said J.J. Kinahan, chief strategist at TD Ameritrade.
A survey of fund managers by Bank of America Merrill Lynch released on Tuesday revealed that only 11 percent of those polled expect a taper this week.
The Dow Jones industrial average <.DJI> rose 28.7 points or 0.18 percent, to 15,903.96, the S&P 500 <.SPX> lost 1.06 points or 0.06 percent, to 1,779.94 and the Nasdaq Composite <.IXIC> dropped 17.088 points or 0.42 percent, to 4,006.592.
Data on Wednesday showed U.S. housing starts surged to the highest in nearly six years in November, a sign of strength in the housing market that could support a Fed decision to soon start cutting back its bond purchases. The stimulus has kept a lid on borrowing costs and flooded markets with liquidity, boosting an equities rally. The S&P 500 <.SPX> closed at a record high on December 9.
In company news, shares of Lennar Corp rose 2.9 percent to $36.21 after the No. 3 U.S. homebuilder reported a 32 percent jump in fourth-quarter profit.
Apple and Micron weighed on the Nasdaq, with the iPhone maker down 2.1 percent at $543.24 and Micron off 7.6 percent at $21.18.
Ford shares fell 6.8 percent to $15.57 after the carmaker said it expects North American pre-tax profit to be lower in 2014 than in 2013.
CVS Caremark said it expects sales and earnings to rise in 2014 even though it anticipated only a "modest" benefit next year from the launch of the Affordable Care Act, or Obamacare. Its shares rose 2.8 percent to $68.68.
Jabil Circuit shares tumbled 21.5 percent to $15.49 a day after the contract electronics maker said it would sell its warranty repair business and forecast current-quarter results way below Wall Street estimates.
(Reporting by Angela Moon; Editing by Kenneth Barry and Nick Zieminski)
FinanceInvestment & Company InformationFederal Open Market CommitteeFederal ReserveBy Joseph Ax and Nate Raymond
NEW YORK (Reuters) - A former JPMorgan Chase & Co vice president received no prison time on Wednesday after pleading guilty and cooperating with authorities investigating bid rigging and fraud schemes related to investment contracts for municipal bond proceeds.
James Hertz, 56, pleaded guilty to wire fraud and conspiracy charges in 2010 and cooperated in a wide-ranging investigation of the $3.7 trillion U.S. municipal bond market. The probe resulted in numerous convictions and got five large financial institutions to pay about $743 million in restitution, disgorgement and penalties.
In sentencing him to no prison time and no probation, U.S. District Judge Kimba Wood in New York noted Hertz's cooperation with the government and his "unblemished" character aside from the crime in question.
Prosecutors say that from 2001 to 2006, Hertz and others engaged in bid-rigging, determining in advance whose employer or institution would win contracts for investment and other municipal finance activities.
Court documents said that from 1998 to 2006, Hertz also received details about competitors' bids from a Minnesota broker in violation of U.S. Treasury Department regulations.
Hertz was the eighth of 13 people to plead guilty as part of the investigation and the first from JPMorgan, which agreed in 2011 to pay $228 million to settle federal and state bid-rigging investigations.
Another JPMorgan employee, Alexander Wright, pleaded guilty in 2012 to one count of conspiracy to commit wire fraud. He was sentenced in October to one year probation.
As part of his cooperation deal, Hertz testified the trial of three former UBS AG bankers: Peter Ghavami, Gary Heinz and Michael Welty. They were convicted on conspiracy and fraud charges stemming from the bid-rigging probe.
The ex-UBS bankers were sentenced in July to prison terms ranging from 16 to 27 months.
In total, 16 people have been convicted as part of the bid-rigging investigation. Phillip Murphy, a former executive at Bank of America Corp , is to face trial in February in Charlotte, North Carolina, on charges stemming from the probe.
The Justice Department obtained three other convictions in 2012 of three former bankers at General Electric Co's GE Capital unit: Steven Goldberg, Dominick Carollo and Peter Grimm. But a federal appeals court vacated their convictions, saying the government waited too long to prosecute.
The case is U.S. v. Hertz, U.S. District Court, Southern District of New York, No. 10-cr-01178.
(Reporting by Nate Raymond and Joseph Ax; Editing by David Gregorio)
Company Legal & Law MattersSociety & CultureBy Jonathan Stempel
NEW YORK (Reuters) - A federal judge said Facebook Inc, Chief Executive Mark Zuckerberg and dozens of banks must face a lawsuit accusing the social media company of misleading investors about its financial health before its $16 billion initial public offering last year.
In a decision made public on Wednesday, U.S. District Judge Robert Sweet in Manhattan said investors could pursue claims that Facebook concealed material information from its IPO registration statement.
Investors alleged that Facebook should have disclosed its internal projections on how increased mobile usage and product decisions might reduce future revenues, among other things.
The defendants argued that Facebook had no obligation to make the disclosures, which they called immaterial, even though it had provided such projections to its underwriters' analysts.
In an 83-page decision dated December 11, Sweet said higher mobile usage had already had a "material negative" impact on revenue, and that the company should have disclosed more about the relationship.
"The company's purported risk warnings misleadingly represented that this revenue cut was merely possible when, in fact, it had already materialized," Sweet wrote. "Plaintiffs have sufficiently pleaded material misrepresentation(s) that could have and did mislead investors regarding the company's future and current revenues."
A spokeswoman for Menlo Park, California-based Facebook had no immediate comment. A lawyer for some of the investors did not immediately respond to requests for comment.
On Monday, Sweet issued a decision that investors could also pursue claims accusing Nasdaq OMX Group Inc of concealing technology problems that led to difficulties in processing trades on May 18, 2012, Facebook's first day of trading.
Sweet is overseeing nationwide litigation arising from the IPO.
Facebook went public at $38 per share. Its share price rose as high as $45 on the first day, but quickly fell below the offering price and stayed there for more than a year.
Facebook is now profitable, and is expected to join the Standard & Poor's 500 index after the close of trading on Friday.
The case is In re Facebook Inc IPO Securities and Derivative Litigation, U.S. District Court, Southern District of New York, No. 12-md-02389.
(Reporting by Jonathan Stempel in New York; Editing by Gerald E. McCormick and Jeffrey Benkoe)
IPOsCompany Legal & Law MattersFacebookMark ZuckerbergBTC China said the action follows new regulations from Beijing, which keeps a tight grip on the yuan and enforces capital controls, which the e-currency threatens to upend.
At its peak, Bitcoin traded at $1,250 (£764) but on Wednesday one Bitcoin was listed for sale for as little as $636 (£389).
Bitcoin was invented after the global financial crisis by a mysterious computer guru and can be stored either virtually or on a user's hard drive.
The e-money offers a largely anonymous payment system, which China’s central bank, the People's Bank of China, warned can be used for illegal activities.
Two weeks ago it ordered financial institutions against providing Bitcoin-related services and products.
The central bank reportedly banned domestic third-party payment companies from providing clearing services for virtual currency trading platforms earlier this week.
Analysts worry the new restrictions will all but destroy Bitcoin trading in China.
"If the channel for depositing yuan in the platforms was completely cut off, all domestic exchanges would be invalid," James Gong, a digital currency expert and member of the US-based Bitcoin Foundation, told AFP.
"Bitcoin trading might be forced underground or shift to overseas markets," he said.
BTC China posted an apology on its website for the new ban on deposits, calling the measure "temporary".
"Due to new government regulations, BTC China will temporarily suspend CNY (yuan) deposits.
"Rest assured that BTC China will continue to operate normally. We deeply apologise for any inconvenience."
:: Watch Sky News live on television, on Sky channel 501, Virgin Media channel 602, Freeview channel 82 and Freesat channel 202.
Related StoriesBitcoin Blunder Man Throws Away '£4m Laptop''Bitcoin Ransom Scam' Warning For Email UsersWith various financial issues appearing in the economy such as late tax refunds and higher taxes beginning in 2013, many card companies like Visa and MasterCard have been worried that consumer credit card spending could be affected. At least in the short-term, however, this does not appear to be the case.
It is normal to see a reduction in consumer spending in the first three months of the year, as many Americans make large purchases during the holidays and typically spend the following months paying down their expenditures. While March year-to-year growth was less than the metrics observed for the preceding month, there is still a healthy amount of consumer credit card spending occurring within the economy.
Some have suggested that as the economy has improved in a broad sense and credit has become slightly more available, more and more people are resulting to the spending habits that they had prior to the recession: namely, more and more Americans are resuming the habit of using their credit cards in order to make up for the loss in income that they have experienced.
Still, it is worth noting that the overall level of credit card debt in the United States has been on a downward trend, and that younger people are using credit cards much less than their parents ever did. This bodes well for maintaining a relatively stable credit market and will help avoid another large credit bubble like the one that manifested in 2007-08.
Many analysts have also mentioned the notion that tax changes do not have a historically strong correlation with the level of credit card use; more often than not, that number has been determined by the growth of GDP. Since the US economy is slowly picking up in terms of GDP growth, many analysts are bullish on the prospects of increased credit card demand for 2013.
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XHTML: You can use these tags:It turns out that both MasterCard and American Express have been selling your consumer data to other companies for advertising purposes.
In a report released by Advertising Age, several pieces of information have been brought to light. Among them: MasterCard has been selling consumer purchasing histories for nearly three years now, while American Express also has been offering sets of data to select advertisers.
Before you ask: no, they are not leaking specific information about you individually. No names or addresses are included in this information. What is released, however, are the aggregate consumer habits of a particular ZIP code or city. So for instance, an advertiser may wish to see which ZIP codes in the US have the highest percentage of multivitamins. They can purchase this set of data from one of the card companies and then use that data to aim advertisements at that particular audience
With more competition coming out of the Great Recession among card issuers combined with a smaller pool of demand, there has been a new wave of offers being unveiled by major entities that include much lower interest rates and heftier bonuses for using credit cards for everyday expenses.
The average credit card interest rate for those with excellent credit has dropped below 13 percent, marking a near 2-percent drop in the last twelve months. Unfortunately, this drop is not uniform; for those with poor credit, their interest rates have increased from 17 percent to 20 percent over the last twelve months, making it both more difficult and more expensive for those who are struggling to obtain a credit card.
Still, for those at the top, the perks get even better. The average length of a 0% APR for balance transfers has risen over two percent from last year, meaning that more card companies are offering longer terms for paying down that debt interest-free. Cashback rewards programs have also been a boom, with the average payout increasing by over 15 percent in the same time period.
If you currently have good credit, all of these improvements can lead to you saving anywhere from tens to hundreds of dollars per year, making it even more appealing to maintain good credit if you already have it.
One bad piece of news is the amount of complaints that are being filed by cardholders and applicants: in the past twelve months, these claims have nearly doubled, as reported by the Consumer Financial Protection Bureau. Some of this may be due to the seemingly unfair practices of hiking rates on those with less than great credit, while another part of the situation most likely originates from the CFPB being in full force after legislation was passed in 2010.
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XHTML: You can use these tags:A recent report released by the Consumer Federation of America outlines the reasoning behind this trend. Many individuals feel disillusioned with traditional banking, for reasons including poor credit and lack of financial solvency leading to overdraft fees and excessive penalties any time a financial deviation occurs.
But it’s not just those with poor finances that are turning to prepaid credit cards: many well-to-do people are finding there are many benefits in using this approach. Parents, for example, can give their children access to a pre-determined amount of money and monitor spending. When the card runs out of cash, kids will then have to prompt their parents for more
Recent reports from Canada are showing that it is easier than ever to steal sensitive credit card information from unsuspecting individuals without leaving a trace. The process works by using a popular smartphone
Under the Credit CARD Act, a key stipulation of the bill was one that insisted that credit cardholders demonstrate viability to pay for purchases (proof of income) before being approved for a card. This led to many financial institutions denying credit applications for stay at home moms and other individuals who did not have independent income. Previously, people could claim household income as a form of liability.
In the aftermath of its passage, many lawmakers have expressed concerns with this interpretation, stating that the original scope of the law was not intended to target these individuals. Nevertheless, without the financial agency being officially online for nearly four years, financial institutions’ hands were tied in terms of acting otherwise.
The new guidelines
The largest sector of growth in this category was student loans and automobile purchases, which saw a $10 billion increase from the previous month. A measurement of total credit card debt, however, was shown to have shrunk by nearly $2 billion, making this month’s number ($846 billion) close to 20% below the highest rate of just over $1 trillion in July 2008.
Some economists are saying that a big contributor to this trend is the increase in US payroll taxes that took effect on January 1. As a result of a 2009 tax cut expiring, income taxes for all Americans increased by two percentage points. While in the past many Americans are quick to use credit cards to cover expenses, that phenomenon has ceased to exist in the years following the recession. The reduction of household debt
Some speculation as to why this happened involved the head of Google Wallet, Osama Bidier, who may be leaving the company. A recent memo distributed within Google is claimed to outline the axing of the product for the time being.
Despite the claims, many are left wondering why Google would not continue on the path of releasing the card as they had planned. Sources inside the company claimed that functional prototypes were already in existence, with the standard ‘W’ multi-color logo of Google Wallet embossed on the front of the card. In all aspects, the now-hypothetical Google Wallet credit card looked and functioned as intended.
Google had hinted that its reasoning for developing the card was to extract more information about personal spending habits
Filed by Kamala Harris, the complaint outlines that JPMorgan Chase committed debt collection violations against tens of thousands of California residents. The company has been reported to have filed thousands of lawsuits between 2008 and 2011 that sought to collect debt from past due credit card statements. In one day alone, it was reported that the lender filed nearly 500 lawsuits.
At the heart of the perceived illegality of these actions is the fact that the bank used a variety of tactics to process these applications that are considered to be unlawful. For instance, many lawsuits were filed using unverified legal documents that call into question whether these lawsuits were even valid in the first place.
This is not the first case of trouble for the lending giant. Robosigning abuses (where automated machines are used to process legal documents in a rapid fashion without review) led to a multi-billion dollar settlement key banks following the foreclosure crisis. Again, the main issue behind this tactic was the neglect of the banks to verify information that is paramount before filing lawsuits and foreclosures.
With many of the filed lawsuits containing questionable or incomplete records, according to the Attorney General’s office, JPMorgan Chase may be held liable for penalties in the billions of dollars. Since the vast majority of the cases filed do not adequately demonstrate that the holder of the debt actually owes the debt, these cases are being viewed and frivolous and in some cases, fraudulent.
This is not an isolated phenomenon, either. Industry analysts suggest that virtually every major lender and financial institution has engaged in these practices and could be on the receiving end of future lawsuits by California and other states.
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XHTML: You can use these tags:With a variety of credit card companies developing mobile apps to help their customers’ access payment history and other features, it is only a matter of time before location and data is compiled into a streamlined interface that assists customers with purchases. One trend that is expected is the analysis of purchase history coupled with geography to provide consumers with select deals in their area while out shopping. The concept of spending alerts is another trend that is expected to be fully integrated into mobile technology in the coming years.
Data TrendsCard companies have a plethora of data from their consumers at their disposal
At the crux of the argument and disagreement, retailers are saying that the settlement does nothing to prevent the same problems from arising again
Fortunately, developing a plan for reducing credit card debt and preventing its recurrence is fairly simple. Below, we will discuss four ways in which you can begin the path to fiscal solvency without resorting to the same old tactics.
Determine Cost of LivingKnowing how much you are spending each month will give greater insight into the problems you are currently facing in regards to credit card debt. An accurate determination of cost of living will include all monthly expenses for the past several months, but looking at this number from multiple perspectives can help. We encourage you to have two numbers: one cost of living number that includes what you must spend, and another that includes what you have been spending. Outlining the difference between these two numbers will help you determine the wiggle room you have going forward.
Eliminate Unnecessary ExpendituresWith your cost of living numbers calculated, you can now determine where reductions in spending can be made. Eating out, morning runs to the coffee shop and miscellaneous entertainment are the biggest drivers of discretionary debt
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Whatever the motivation, many have asked whether using a credit card to make such improvements is a valid and fiscally responsible approach. Below, we’ll address these concerns so you can make the best decision possible.
Small Investments Versus Large InvestmentsCredit card debt resulting from a home improvement project can quickly become more of a liability than an asset if done improperly. While small projects can usually be paid off in a matter of months, larger investments will depend namely on your current income and savings. There are a variety of credit cards available to those with good or excellent credit that offer 0% APR for a period of several months; for financially manageable products, using a credit card in this case makes sense
Start-up company, The Bitcoin Card, launched its MasterCard-branded prepaid solution with great fanfare from within the Bitcoin community. Many Bitcoin users have long been searching for more traditional outlets through which Bitcoins can be spent. While Bitcoins cannot be directly traded via the card, it does allow users an easy option for cashing out their virtual currency into a tangible, real-life spending solution.
Users can sign-up for The Bitcoin Card via the company’s website, filling in just a few details before a prepaid card can be purchased and shipped. Bitcoins are then transferred into the account and converted into Euros or Dollars, upon which the card is shipped to its owner. Arrival times for The Bitcoin Card average about one week. Users have the option of checking their balances via the online management system, and can access ATMs and any point of sale where MasterCard is accepted.
Activating the card is the one caveat: as of right now, a one-time fee of 0.8 Bitcoins (which currently is equivalent to around $80) is required. This makes acquiring The Bitcoin Card much less appealing for casual users of the currency, making it mainly a choice for those significantly invested in Bitcoins.
While the company itself has only existed for the past few months, key developers were part of several prepaid credit card solutions over the past few years. Providing further reassurance is the generally positive feedback observed from many of The Bitcoin Card’s first customers. Quick shipping times and no impediments to spending with the prepaid card are being observed with its unveiling, with virtually no complaints seen regarding fraud, lost or stolen cards.
Still, the future seems bright for this currency and its relationship with prepaid credit cards. As stability and the level of acceptance of Bitcoins increases, more prepaid solutions ultimately will follow.
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XHTML: You can use these tags:The credit card ring was first discovered by Vietnamese authorities, who made an arrest on the 29th of May. The individual in question, Duy Hai Truong, is named in federal charges set forth by federal prosecutors in New Jersey. None of the other accomplices in the crimes have been named thus far in the federal charges, but have been taken into custody in their respective countries for their roles in the scheme. A number of the suspects were residing in the state of New Jersey at the time of their arrests.
A recently-passed international computer crime law in Vietnam enabled Vietnamese authorities to work with other countries whenever multi-national crimes such as credit card fraud have occurred.
Based on the size and scope of the credit card fraud ring, it has been reported by Britain’s National Cyber Crime Unit that this is one of the biggest credit card theft operations ever to exist. A similarly-sized credit card hacking ring was discovered some months ago in Russia, making this the second multi-hundred million dollar ring to be busted by international authorities this year.
Other notable cyber crimes include a $45 million ATM heist operation in which hackers were able to eliminate restrictions on withdrawal limits on prepaid debit cards, allowing them to completely empty out hundreds of ATMs in various Middle Eastern countries.
Considered a lofty success, several legal experts and industry analysts were surprised at the effectiveness of the operation and how all individuals involved were able to be brought to justice. Many rings are often busted without discovering the entire group of individuals involved.
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XHTML: You can use these tags:When employed, shopping for a credit card may consist of various considerations: travel perks, rewards points and roadside assistance features are prominently considered by many. Seeing as how the average senior is bringing in less per month than the average worker, however, having a low interest rate is priority number one for any credit card. Most seniors do not carry large amounts of debt on any credit card, but even small amounts can become burdensome if interest charges slowly pile up over months and years.
Easy Access to Account InformationMany seniors do not want the hassle of online account management
This Monday, two different credit card reports were released that both show strong signs that a recovering US economy continues to gain momentum.
Despite how some individuals may feel about the economic situation, credit card debt saw its biggest increase in June in more than one year, which suggests that more and more people have now begun borrowing once again. While this trend would not be a good sign on its own, other available data from a second report outlines the positive news in this trend.
As outlined by Global Vice President Hill Ferguson, the adoption of smartphones by hundreds of millions of people in recent years has provided additional outlets for consumers to access their lines of credit without the need for a physical card, and it is no surprise that PayPal
The end result was a credit card ring that managed to steal more than 160 million different credit card numbers and defraud consumers of at least hundreds of millions of dollars
A long-term project has been under development
Introduced recently, the Dynamics ePlate credit card is an intuitive solution to an age-old problem: that magnetic strip on the back of your credit card. Comprised of paint, traditional credit card magnetic strips are static in that they cannot be altered, changed or even colored differently.
Dynamics Incorporated has found a way around this.
Inside this new credit card, the traditional magnetic strip is actually embedded in between the front and back of the card. Traditional strips are made from a type of magnetic filament that is poured onto the surface of the card and allowed to solidify. Measuring less than 1/10000th of an inch thick, this microscopic electronics board consists of a lithium polymer battery and circuits.
Since the actual
Recently discovered on several ATMs in Sydney, Australia were credit card skimmers produced using 3D printers. The concept of 3D printing in recent years has gained steam as costs have plummeted and flexibility when it comes to what can be created has expanded. Make no mistake, however: these credit card skimmers were anything but simple pieces of plastic.
Perhaps the first skimmers of its kind to be discovered, these devices contained several pieces of technology that assisted the thieves who installed them. Wireless transmitters and cameras were found in these units, which made it possible for remote retrieval of data and the capture of PIN numbers from unsuspecting ATM users.
Even more worrisome is the fact that these skimmers
As mortgage rates hit historic lows, financial institutions found a new cash cow
At the heart of the issue is how the lender pursued the collection of debt from consumers who had defaulted on their credit cards. Regulators stated that there were
The software giant has confirmed that a massive data breach occurred on its servers within the past two months and that more than three million customers may have been affected. The firm discovered the breach after learning that its source code had been accessed and tampered with earlier in the week.
While none of Adobe’s products in particular were targeted, massive data banks were believed to have been accessed and this has resulted in the potential leakage of millions of sensitive records. Some of the information included in the Adobe systems affected by this breach include names, credit card data and expiration dates, and home information such as addresses and telephone numbers. Adobe emphasized, however, that it has no definitive proof that any of the aforementioned information was viewed or stolen.
The company was first alerted to the issue last week, when external developers discovered a large batch of altered source code that was present on the servers and resembled that of source code used to tap into other large firms such as LexisNexis earlier in the year. The security firm alerted Adobe to the potential intrusion so that customers could then be notified. The firm also reported that the initial breach likely took place sometime in mid-August and that the company has been monitoring unusual activity on the servers since mid-September.
All passwords associated with Adobe accounts have been reset and the company has alerted banks that handle payment processing services for Adobe to also be on the lookout. Customers have also been informed of the potential for identify theft so that they can change any cards or personal information to help mitigate any risks. In the meantime, it is likely that hundreds of thousands of credit card numbers have already been used maliciously or sold to those who have more nefarious ideas in mind. It is certainly not the first time that such an event has happened and most likely will not be the last.
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XHTML: You can use these tags:The Internal Revenue Service
I ended up picking up a Chase Freedom rewards credit card, which offered 3% cash back in the 3 spending categories I used most, plus an additional $50 bonus cash back for every $200 in cash back earned. I paid off my credit card balance in full every month and benefited from thousands of dollars in rewards.
Now, due to the credit crunch, credit card companies have been tightening their purse strings. My Chase Freedom card is the latest victim. There are no more 3% bonus categories. Also, the $50 bonus when reaching $200 in cash back rewards is gone.
The bonus being nixed means my Chase Freedom card essentially becomes just like every other 1% cash back card out there. Thus, I set out on an adventure to find a new credit card that gave me better rewards.
Which Are Worth It?I looked at hundreds of cards before making a decision. Some of my criteria were:
No AmEx or Discover. I had an AmEx card when I ran my hosting company. Although AmEx has great customer service, I was frustrated with the few places it was accepted. Discover has similar issues. As a merchant, I hated AmEx — they charged higher rates than Visa or Mastercard and their chargeback policy was asinine.More than 1% cash back. 1% is pretty easy to find everywhere, but I wanted a card that paid more than that.No restrictions on how to use the cash back. I don’t want to be limited to using my cash back at a certain store, hotel, or airline.No annual fee. This goes without saying.Instead of making you wade through hundreds of credit cards, I will narrow it down to two cards for you. Both have a few caveats, but they are worth it.
PenFed (Pentagon Federal Credit Union) Visa Platinum CardHighlights: 1.25% cash back; 2.99% balance transfer rate for the life of the balance transfer
Caveats: Must be a PenFed member. If you are not a military service member or government employee, you will need to pay $20 to join the National Military Family Association, and then you become eligible to become a PenFed member. After becoming a member, you will need to deposit $5 in a Regular Share account to open your credit card account.
Summary: My favorite thing about PenFed is its great rates on pretty much everything. They offer mortgages, auto loans (at 3.99%!), and a 5-year CD that pays 4% APY (as of this writing.) Their Visa card is a great deal, too; it offers 5% cash back on gas, 2% at the supermarket, and 1.25% cash back on everything else. The cash rewards are simply credited to your account at the end of the month; you don’t have to request them. It’s definitely worth the $20 one-time fee to sign up with them. I am even considering refinancing my auto loan into PenFed so I pay less every month.
The application process is straightforward, albeit a bit strange if you are not a government or military employee. First, you establish your account and pay $20 for a one-year membership in the National Military Family Association. (You do not need to pay more than the $20 for a 1-year membership to retain membership in PenFed!) This is tax-deductible, so make a note of it for tax purposes. Once that’s done, go through the steps to set up your PenFed account.
PenFed will send you a form in the mail that you then sign and return to them in the postage-paid envelope provided. With the customer number you received in the mail, set up your online account and apply for the credit card. The customer service rep I talked to says that due to their 2.9% balance transfer promotion, it takes a few days to get an account approved. Their customer service was friendly and helpful — an encouraging sign. I am currently waiting for my account to be approved.
Find out more or apply for about the Pentagon Federal Credit Union Visa card.
Since I had already dinged my credit with one account offer, I decided to go for another credit card as well. (It’s always best to apply for multiple credit cards at once so you don’t have inquiries every few months on your credit report.) I chose the Schwab Invest First Visa card.
Schwab Invest First Cash Back Credit CardHighlights: 2% cash back on everything; 2.99% balance transfer offer for 6 months
Caveats: Must open a Schwab investment account, which has a $1000 minimum (or $100/month automatic transfer). Cash back will be deposited into your Schwab account, which you can then invest, write a check on, or withdraw with a debit card.
Summary: This is a great card for those who want to invest online. I love the idea of investing credit card rewards, since I am a huge fan of my money making me more money! Schwab charges a $12.95 fee for each trade made with your account ($8.95 if you have over $1 million in liquid assets or make more than 30 trades per quarter.) You can buy CDs, stocks, mutual funds, or bonds with your Schwab account.
To apply for the card, you must first open a brokerage account. The online form will take a few minutes to fill out; you’ll need your driver’s license number. During the account setup process, you have the option to transfer a brokerage account from another broker. I have an OptionsXpress account that charges me more per trade, so I opted to move that to Schwab.
Once your brokerage account is set up, apply for the credit card. Schwab says it will approve most accounts in 7-10 days. I am currently waiting for approval.
Find out more or apply for a Schwab Invest First Cash Back credit card.
Which Cash Back Rewards Credit Card Is Better?The difference between 1% and 2% cash back is $100 for every $10,000 you spend, so it can be well worth investing an hour or two to make the change. As for which card is better, that’s up to you. As an investor, I will probably use the Schwab card more, but your needs may be different. Of course, there are many other to choose from.
Making The Change Painless: Four TipsIt can be a pain to transfer from one card to another. Here are four quick tips to help make your credit card transition less painful:
Set all payment due dates to the same day. When you get your new card, the first thing you should do is call your credit card company and have them switch the due date to the same date as your current credit card has. That will mean it’s much less likely to go past-due accidentally. Do this for all of your credit cards — even store cards — for a totally painless process.Set up online banking and link your checking account right away. Some credit cards can be really annoying to link to your checking account, so do this right after you change your due date. That way you don’t have to send a check in the mail — another safeguard so you don’t miss a due date.Make a list of all automatic bill payments on your current card, and change them over all at once. This should take somewhere between 30 and 60 minutes. it should be straightforward. If you miss one, no big deal — just catch it next month.Finally, don’t forget to cash out any remaining rewards on your old card. Do this preferably after you have an entire billing cycle with no more charges.are an easy way to keep your money working for you!
Recommended Reading:
. Here’s a huge list of rewards credit cards — and you may even get paid to sign up for them!Make money lending your spare change. Over 40 other erica.biz readers have already signed up for Lending Club and received $25…don’t miss out!What’s the best way to invest money during an economic downturn? I examine various ways to invest your money, from the stock market to housing, from the perspective of the current crash.Don’t forget to budget. Your goal should be to pay your credit cards off in full every month, and let the credit card companies pay you, instead of the other way around.have quickly emerged as the tool preferred by most consumers looking to reestablish credit and do their own credit repair. But few consumers are aware these cards even exist. Many banks do not offer them, choosing instead to specialize in higher interest unsecured cards. While the use of both cards can impact the credit score, many people with less than perfect credit find a secured card is their only option. often carry much lower rates than their unsecured cousins, mainly because the credit line is secured by the card holder with a savings deposit. The bank pays interest on the savings account, and the card holder often gets a lower rate than if the card was unsecured. Applying for a secured credit card is now easier than ever, and online banks are typically the leaders in secured credit card options and features.
What are some notable advantages of secured cards?
LOWER INTEREST RATE
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Definition of 'Fair Credit Reporting Act - FCRA'
The act that regulates the collection of credit information
and access to your credit report. It was passed in 1970 to ensure
fairness, accuracy and privacy of the personal information contained in
the files of the credit reporting agencies. It requires that any person
or entity requesting your report must demonstrate a permissible purpose
for the information before it is released. It also designates the
Federal Trade Commission (FTC) as the enforcement authority for the
provisions of the act.
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Investopedia explains 'Fair Credit Reporting Act - FCRA'
Under this act, you have the right to:
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