Survey of Credit Card Plans

Every six months the Federal Reserve System surveys the terms of credit card plans offered by financial institutions and publishes a report of the findings. The report includes information from the largest credit card issuers in the country as well as other financial institutions that wish to participate in the survey. The credit terms shown in the accompanying list are as of January 31, 2008, and are subject to change. You should contact issuers for current rates and to learn about other credit card plans.

Codes Used in the List of Plans

Availability
Refers to availability of card to consumers

N = Nationally
R = Only in selected states
State abbreviation = Only in state specified

Type of pricing

F = Fixed
V = Variable
T = Tiered, with different periodic rates for different levels of outstanding balance. Rate shown applies to the lowest of the balance tiers.

Index
The interest rate on variable-rate plans is based on an index. The codes shown in the list of plans correspond to the following indexes:

1 = Prime rate
2 = One-month Treasury bill rate
3 = Three-month Treasury bill rate
4 = Six-month Treasury bill rate
5 = One-year Treasury bill rate
6 = Federal funds rate
7 = Cost of funds to card issuer
8 = Federal Reserve discount rate
9 = Other
0 = Not applicable

Other features
Credit card issuers may add enhancements or other features to the plan without charging extra fees. These enhancements may include cash rebates, purchase protections, warranty guarantees, travel accident or automobile rental insurance, discounts on goods and services, and incentives for use such as frequent flyer miles.

1 = Rebates on purchases
2 = Extension of manufacturer’s warranty
3 = Purchase protection/security
4 = Travel accident insurance
5 = Travel-related discounts
6 = Automobile rental insurance
7 = Non-travel-related goods and services
8 = Credit card registration
9 = Reduced introductory interest rate available
10 = Other, not specified
N.R. = Not reported

Survey Report by Name of Financial Institution
Sorted by Annual Percentage Rate | Sorted by Annual Fee

Institution	Availability and Credit Card Plan	Annual Percentage Rate	Type of Pricing	Index	Grace Period (days)	Annual Fee	Other Features	Telephone
1ST SUMMIT BANK	PA- VISA	10.5	V	1	25	15	1,3,4,5,6,10,	(888) 262-4010
5STAR BANK (A COLORADO INDUSTRIAL BANK)	N- 5STAR VISA PLATINUM	11.4	V	1	25	0	9,	(888) 277-0444
ADIRONDACK TRUST COMPANY, THE	NY- VISA	15.0	F	0	25	15	4,6,	(518) 584-5844
AMALGAMATED BANK OF CHICAGO	N- AMALGAMATED BANK OF CHICAGO - MASTER	12.8	V	1	25	0	4,5,10,	(800) 365-6464
AMERICAN EXPRESS BANK, FSB	N- AMERICAN EXPRESS GOLD	17.2	V	1	20	85	N.R.	(800) 257-0770
AMERICAN EXPRESS CENTURION BANK	N- BLUE FROM AMERICAN EXPRESS	12.2	V	1	20	0	2,3,4,5,6,9,10,	(800) 528-4800
AMERICAN SAVINGS BANK, F.S.B.	HI- CLASSIC VISA	16.3	F	0	25	24	4,6,	(808) 272-2566
AMERICAN STATE BANK	TX- AMERICAN STATE BANK VISA	9.90	F	0	25	0	N.R.	(325) 794-1000
ANB FINANCIAL NATIONAL ASSOCIATION	N- ESCAPES / ANB	8.25	F	0	28	0	N.R.	(888) 226-5262
APPALACHIAN COMMUNITY BANK	N- VISA CLASSIC	11.9	F	0	25	12	1,4,5,8,10,	(706) 276-8000
ARVEST BANK	R- VISA	18.4	V	1	25	0	4,6,8,	(800) 356-8085
BANCORPSOUTH BANK	R- MASTERCARD	10.2	V	1	30	0	N.R.	(800) 844-2723
BANK OF CANTON, THE	MA- VISA CLASSIC	9.96	F	0	25	0	4,5,6,8,10,	(888) 828-1690
BANK OF KENTUCKY, INCORPORATED, THE	R- VISA GOLD	12.3	V	1	25	0	4,9,	(859) 372-5170
BANK OF LOUISIANA	N- VISA AND MASTERCARD	9.90	F	0	25	0	N.R.	(504) 889-9421
BANK, THE	NJ- VISA	14.3	V	1	25	0	2,3,4,6,	(800) 833-9295
BANKERS' BANK OF KANSAS, NATIONAL ASSOCIATION	KS- VISA	15.7	V	1	25	0	4,6,	(800) 675-6284
BAR HARBOR BANK AND TRUST COMPANY	ME- VISA CLASSIC CARD	14.5	F	0	25	0	10,	(888) 853-7100
BARCLAYS BANK DELAWARE	N- US AIRWAYS MASTERCARD	18.2	V	1	20	79	4,5,6,9,	(866) 419-0881
BB&T BANKCARD CORPORATION	R- VISA	11.2	V	1	25	0	3,4,5,6,9,	(800) 476-4228
BMW BANK OF NORTH AMERICA	N- VISA	13.5	V	1	22	0	1,2,3,4,6,10,	(888) 269-2273
BOONE COUNTY NATIONAL BANK OF COLUMBIA, THE	R- MASTERCARD/VISA	17.4	F	0	25	0	1,4,5,7,9,	(573) 634-1148
BRANCH BANKING AND TRUST COMPANY	R- VISA	11.2	V	1	25	0	3,4,5,6,9,	(800) 476-4228
CAPITAL ONE BANK (USA), NATIONAL ASSOCIATION	N- MASTERCARD	18.9	V	1	25	45	9,	(800) 955-7070
CENTRAL BANK & TRUST COMPANY	KY- VISA	18.0	F	0	25	20	N.R.	(800) 637-6884
CENTRAL TRUST BANK, THE	R- MASTERCARD / VISA	17.4	F	0	25	0	1,4,5,7,9,	(573) 634-1148
CHASE BANK USA, NATIONAL ASSOCIATION	N- MASTERCARD	8.99	F	0	20	0	N.R.	(888) 684-7370
CHEMUNG CANAL TRUST COMPANY	NY- VISA BUSINESS CARD	11.4	V	1	25	25	3,4,6,	(607) 737-3761
CITIBANK (BANAMEX USA)	N- MASTERCARD PLATINUM	12.0	V	1	25	0	4,10,	(800) 222-1234
CITIBANK (SOUTH DAKOTA), NATIONAL ASSOCIATION	N- MASTERCARD	13.5	V	1	20	0	9,	(800) 950-5114
CITIZENS FIRST BANK	FL- VISA PLATINUM	12.0	F	0	25	0	2,4,6,10,	(352) 259-3274
CITY NATIONAL BANK	R- VISA BUSINESS	16.0	F	0	25	50	2,3,4,6,	(800) 221-5920
CITY NATIONAL BANK OF TAYLOR, THE	TX- VISA AND MASTERCARD	13.9	F	0	25	0	4,6,	(800) 848-8472
CNB BANK	N- VISA	14.9	F	0	30	15	3,4,5,6,8,10,	(800) 492-3221
COLUMBIA RIVER BANK	R- VISA CLASSIC	18.0	F	0	25	0	4,5,8,10,	(541) 298-6607
COLUMBUS BANK AND TRUST COMPANY	N- PLATINUM	15.4	V	1	25	0	N.R.	(800) 543-8227
COMMERCE BANK, NATIONAL ASSOCIATION	R- VISA	9.99	V	1	25	0	3,6,9,10,	(800) 937-2000
COMMERCE BANK, NATIONAL ASSOCIATION	R- SPECIAL CONNECTIONS	16.5	V	1	25	0	4,6,	(800) 645-2103
COMMUNITY BANK & TRUST COMPANY	PA- VISA	12.0	F	0	25	0	10,	(800) 820-4642
COMMUNITY FIRST BANK	AR- MASTERCARD	8.99	F	0	25	50	10,	(870) 391-8000
COMPASS BANK	R- VISA	18.2	V	9	25	0	N.R.	(800) 239-5175
COPPERMARK BANK	R- MASTERCARD	16.2	V	1	25	15	N.R.	(800) 593-1557
COREFIRST BANK & TRUST	KS- VISA CLASSIC	14.9	V	1	25	0	4,9,	(785) 267-8900
CREDIT ONE BANK, NATIONAL ASSOCIATION	N- VISA	23.9	F	0	25	69	N.R.	(877) 825-3242
D. L. EVANS BANK	N- VISA GOLD	12.2	V	1	25	20	2,3,4,5,6,8,10,	(508) 678-2529
DELAWARE NATIONAL BANK	R- VISA	14.3	V	1	25	0	2,3,4,6,	(800) 833-9295
DISCOVER BANK	N- DISCOVER MORE CARD (PLATINUM)	15.0	F	0	25	0	1,4,6,7,9,	(800) 347-2683
DOLLAR BANK, A FEDERAL SAVINGS BANK	R- VALUED CUSTOMER VISA	14.2	V	1	25	0	1,6,9,	(800) 447-2823
FAIRFIELD FEDERAL SAVINGS AND LOAN ASSOCIATION OF LANCASTER	OH- FAIRFIELD FEDERAL VISA GOLD	10.5	V	1	25	12	10,	(800) 650-0987
FIA CARD SERVICES, N.A.	N- BANK OF AMERICA PLATINUM PLUS VISA	13.0	V	1	20	0	3,4,6,10,	(800) 932-2775
FIFTH THIRD BANK	R- PLATINUM MASTERCARD	9.24	V	1	20	0	3,4,8,9,10,	(877) 579-5353
FIRST BANK & TRUST EAST TEXAS	TX- VISA CLASSIC	13.9	F	0	25	0	N.R.	(888) 608-7787
FIRST COMMAND BANK	N- VISA PLATINUM	7.50	V	1	30	0	2,4,6,	(888) 763-7600
FIRST COMMERCIAL BANK	AL- VISA PLATINUM	9.90	V	1	20	0	6,9,	(800) 543-8227
FIRST COMMUNITY BANK	N- MASTERCARD	14.9	F	0	25	50	4,5,6,8,	(505) 241-7373
FIRST COUNTY BANK	CT- VISA CLASSIC	14.2	V	1	25	25	N.R.	(203) 462-4260
FIRST FEDERAL SAVINGS AND LOAN ASSOCIATION	N- VISA	11.2	V	1	25	0	N.R.	(800) 768-3248
FIRST FINANCIAL BANK, NATIONAL ASSOCIATION	R- MASTERCARD CLASSIC	12.5	V	1	25	0	N.R.	(800) 221-8890
FIRST FINANCIAL BANK, NATIONAL ASSOCIATION	R- VISA CLASSIC	15.9	F	0	25	15	4,6,	(800) 511-0045
FIRST HAWAIIAN BANK	HI- MASTERCARD STANDARD	16.5	F	0	25	25	1,6,10,	(800) 342-2778
FIRST INTERSTATE BANK	R- VISA SCORECARD	19.3	V	1	25	35	4,5,6,7,8,9,10,	(888) 791-4071
FIRST NATIONAL BANK & TRUST	FL- MASTERCARD	14.9	F	0	30	20	N.R.	(850) 796-2020
FIRST NATIONAL BANK ALASKA	AK- MASTERCARD	13.9	F	0	25	0	4,	(907) 777-4523
FIRST NATIONAL BANK AND TRUST COMPANY	WY- VISA CLASSIC	13.9	F	0	25	0	4,	(800) 377-6906
FIRST NATIONAL BANK OF FAIRFIELD, THE	MT- VISA CLASSIC	15.6	F	0	25	0	5,7,	(406) 467-2531
FIRST NATIONAL BANK OF IPSWICH, THE	N- MASTERCARD	13.0	V	1	0	35	N.R.	(800) 944-2726
FIRST NATIONAL BANK OF LITCHFIELD, THE	CT- VISA CARD	10.9	F	0	25	0	N.R.	(888) 567-1814
FIRST NATIONAL BANK OF OMAHA	N- VISA	13.0	V	1	20	0	1,2,3,4,6,7,9,	(888) 530-3626
FIRST NATIONAL BANK OF ST. LOUIS	R- MASTERCARD / VISA	17.4	F	0	25	0	1,4,5,7,9,	(573) 634-1148
FIRST NATIONAL BANK OF THE MID-CITIES	N- MASTERCARD REGULAR AND GOLD	13.9	F	0	25	0	N.R.	(817) 553-2500
FIRST SECURITY BANK	AR- VISA	9.99	F	0	25	0	1,3,4,6,	(479) 527-7078
FIRST STATE BANK	NM- MASTERCARD CLASSIC	15.2	F	0	25	0	4,	(800) 423-7503
FIRST TENNESSEE BANK NATIONAL ASSOCIATION MEMPHIS	R- VISA	7.90	V	1	25	0	4,6,9,	(800) 234-2840
FIRST-CITIZENS BANK & TRUST COMPANY	R- VISA GOLD	8.00	V	1	25	0	4,10,	(540) 561-4707
FIRST-KNOX NATIONAL BANK OF MOUNT VERNON, THE	OH- VISA CLASSIC	16.7	V	1	30	0	4,	(740) 399-5500
FIRSTBANK OF COLORADO	R- VISA	14.4	V	1	25	0	2,4,6,	(800) 964-3444
FIRSTMERIT BANK, N.A.	R- VISA PLATINUM	8.50	V	1	25	0	2,4,6,9,	(888) 554-4362
FNB BANK, NATIONAL ASSOCIATION	PA- VISA	14.3	V	1	25	0	2,3,4,6,	(800) 833-9295
FRANKLIN TEMPLETON BANK & TRUST F.S.B.	N- PLATINUM MASTERCARD	9.99	V	1	25	0	2,3,4,6,10,	(800) 238-2761
GE MONEY BANK	N- DISCOVER CARD	16.1	V	1	0	0	N.R.	(800) 417-8321
GREENVILLE NATIONAL BANK	OH- GREENVILLE NATIONAL BANK VISA	17.9	F	0	25	0	N.R.	(937) 548-1114
HEARTLAND BANK	OH- MASTERCARD	13.9	V	1	25	18	4,10,	(800) 697-0049
HILLS BANK AND TRUST COMPANY	IA- VISA PLATINUM	8.00	V	1	25	0	4,	(800) 445-5725
HOME FEDERAL BANK OF TENNESSEE, FSB	TN- VISA CLASSIC	12.8	F	0	25	15	6,	(865) 544-3954
HSBC BANK USA, NATIONAL ASSOCIATION	N- MASTERCARD	14.2	V	1	20	0	3,4,5,9,10,	(877) 700-4722
HUNTINGTON STATE BANK	TX- VISA	13.9	F	0	25	0	N.R.	(936) 639-5566
IDAHO INDEPENDENT BANK	N- VISA	12.9	V	1	25	15	3,4,5,6,7,	(208) 947-1168
INFIBANK, N.A.	N- VISA	13.0	V	1	20	0	1,2,3,4,6,7,9,	(877) 875-8078
INTRUST BANK, NATIONAL ASSOCIATION	N- VISA PLATINUM	13.2	V	1	25	0	4,6,10,	(800) 222-7458
IRONSTONE BANK	R- VISA PLATINUM	8.00	V	1	25	0	4,	(540) 561-4707
KENTUCKY BANK	KY- VISA	15.2	V	1	25	0	N.R.	(859) 987-1795
LAFAYETTE AMBASSADOR BANK	PA- VISA	14.3	V	1	25	0	2,3,4,6,	(800) 833-9295
LOS ALAMOS NATIONAL BANK	N- VISA	10.5	F	0	30	15	2,3,4,5,6,8,	(505) 662-5171
M&I BANK FSB	R- VISA CLASSIC	13.9	V	1	25	15	N.R.	(800) 642-2657
MERCER SAVINGS BANK	OH- VISA	11.9	F	0	25	20	9,	(419) 586-5159
MERRICK BANK CORPORATION	N- VISA CLASSIC	24.7	V	1	25	0	N.R.	(800) 253-2322
MFB FINANCIAL	R- VISA	12.9	F	0	25	0	N.R.	(800) 400-0433
NATIONAL CITY BANK	R- NATIONAL CITY EVERYDAY REWARDS	14.2	V	1	20	0	1,2,3,4,6,	(800) 282-7541
NATIONAL GRAND BANK OF MARBLEHEAD	MA- MASTERCARD	16.5	F	0	25	0	N.R.	(781) 631-6000
NATIONWIDE BANK	N- PLATINUM VISA (AAB)	11.2	V	1	25	0	1,2,3,6,9,	(866) 439-3206
NEW MILLENNIUM BANK	N- VISA SECURED CREDIT CARD	19.5	F	0	0	59	2,3,4,6,	(732) 729-4395
NORDSTROM FSB	N- VISA	11.2	V	1	25	0	3,4,6,10,	(800) 964-1800
NORTHWEST SAVINGS BANK	R- VISA CLASSIC	13.8	F	0	25	0	3,6,	(814) 728-7505
OAK HILL BANKS	N- VISA CLASSIC	17.4	F	0	25	0	4,	(513) 398-5196
OHIO VALLEY BANK COMPANY, THE	R- VISA	14.3	F	0	25	15	N.R.	(740) 441-9148
PARK NATIONAL BANK, THE	OH- CLASSIC VISA	18.0	F	0	25	12	N.R.	(800) 762-2616
PENN SECURITY BANK AND TRUST COMPANY	N- MASTERCARD	14.8	F	0	25	0	N.R.	(570) 346-7741
PEOPLES FIRST COMMUNITY BANK	FL- MASTERCARD GOLD	10.9	F	0	25	0	N.R.	(800) 624-9699
PINNACLE BANK	R- VISA CLASSIC	16.0	V	9	25	0	4,5,6,10,	(800) 369-7283
PLAINS COMMERCE BANK	N- VISA / MASTERCARD	19.8	F	0	25	39	N.R.	(605) 948-2344
PULASKI BANK AND TRUST COMPANY	N- VISA CLASSIC / STANDARD	6.50	F	0	25	35	9,	(800) 217-7715
QUAD CITY BANK AND TRUST COMPANY	R- VISA CLASSIC	14.2	V	1	25	0	4,6,10,	(877) 954-0190
RAINIER PACIFIC SAVINGS BANK	N- VISA GOLD	12.0	V	1	25	0	N.R.	(800) 228-2858
RANDOLPH NATIONAL BANK	N- MASTERCARD	9.50	F	0	30	12	10,	(802) 728-9611
RBC CENTURA BANK	R- VISA GOLD	12.5	V	1	25	0	2,4,6,8,9,	(800) 236-8872
RBS CITIZENS, NATIONAL ASSOCIATION	N- CITIZENS MASTERCARD PLATINUM	6.99	F	0	20	0	2,4,6,10,	(888) 333-5145
RICHLAND TRUST COMPANY, THE	OH- VISA GOLD	9.75	V	1	30	50	4,	(519) 525-8791
ROCKPORT NATIONAL BANK	R- MASTERCARD	13.5	V	1	25	0	N.R.	(978) 546-3411
S & T BANK	PA- VISA CLASSIC	11.0	V	1	25	15	1,6,10,	(800) 325-2265
SAVINGS BANK OF MAINE	ME- VISA CLASSIC	16.5	T	0	25	0	N.R.	(207) 582-5550
SECURITY NATIONAL BANK AND TRUST COMPANY	OH- CLASSIC VISA	16.9	F	0	25	0	N.R.	(937) 324-6828
SILVERTON BANK, N.A.	N- MASTERCARD	15.2	V	1	25	30	N.R.	(800) 854-7642
SIMMONS FIRST NATIONAL BANK OF PINE BLUFF	N- VISA	11.0	F	0	25	35	4,	(800) 636-5151
SOLVAY BANK	NY- VISA CLASSIC	14.9	F	0	25	0	N.R.	(315) 468-1661
STATE FARM BANK, FSB	N- PLATINUM REWARDS VISA	11.0	V	1	20	0	1,2,4,6,9,	(877) 734-8472
SUNFLOWER BANK, NATIONAL ASSOCIATION	N- VISA CLASSIC	7.65	V	1	25	0	4,5,6,8,	(888) 827-5564
SUNTRUST BANK	R- SUNTRUST PLATINUM REWARDS VISA	12.2	V	1	20	0	3,4,6,9,	(800) 477-9702
TCM BANK, NATIONAL ASSOCIATION	N- VISA PLATINUM	14.4	V	1	25	0	N.R.	(800) 883-0131
TEXAS BANK AND TRUST COMPANY	TX- VISA CLASSIC	13.9	F	0	25	0	N.R.	(903) 237-5680
TIB THE INDEPENDENT BANKERSBANK	N- VISA AND MASTERCARD	15.2	V	1	25	0	N.R.	(800) 367-7576
TOWN NORTH BANK NEVADA, NATIONAL ASSOCIATION	N- MASTERCARD	7.99	V	1	20	0	4,8,9,	(800) 820-8417
TRUSTMARK NATIONAL BANK	R- VISA	13.9	V	1	30	0	N.R.	(601) 208-7685
U.S. BANK NATIONAL ASSOCIATION ND	R- VISA	9.40	V	1	25	0	9,	(800) 285-8585
UMB BANK, NATIONAL ASSOCIATION	N- VISA - PLATINUM	11.2	V	1	20	0	1,4,6,9,10,	(800) 821-5184
UNITED BANK, INC.	R- VISA	13.3	V	1	25	0	10,	(800) 242-7600
USAA SAVINGS BANK	N- MASTERCARD	10.2	V	1	25	0	N.R.	(800) 531-8722
VALLEY NATIONAL BANK	NJ- MASTERCARD	16.8	F	0	25	0	N.R.	(800) 522-4100
WACHOVIA BANK, NATIONAL ASSOCIATION	N- VISA PLATINUM WITH REWARDS	12.2	V	1	25	0	9,	(800) 922-4684
WALLIS STATE BANK, THE	TX- VISA	14.9	F	0	25	0	4,5,6,8,	(979) 478-6151
WASHINGTON MUTUAL BANK	N- PLATINUM MASTERCARD	15.0	V	1	25	0	10,	(800) 219-6192
WAYNE BANK AND TRUST CO.	N- PLATINUM VISA	11.0	F	0	25	0	N.R.	(888) 769-2963
WELLS FARGO BANK, NATIONAL ASSOCIATION	N- VISA	14.4	V	1	25	0	N.R.	(800) 642-4720
WELLS FARGO FINANCIAL BANK	R- VISA	18.0	F	0	25	20	N.R.	(605) 336-3933
WELLS FARGO FINANCIAL NATIONAL BANK	N- MATTRESS FIRM VISA	13.4	V	1	20	0	N.R.	(800) 459-8451
WEST SUBURBAN BANK	IL- VISA CLASSIC	13.8	V	1	25	0	N.R.	(630) 652-2000
WHITNEY NATIONAL BANK	R- VISA	12.5	V	1	25	0	N.R.	(504) 838-6565
WILMINGTON TRUST COMPANY	N- MASTERCARD	15.0	V	4	25	18	4,5,8,10,	(800) 523-2378
WORLD FINANCIAL NETWORK NATIONAL BANK	N- GANDER MOUNTAIN GOLD MASTERCARD	20.0	V	1	25	0	N.R.	(888) 332-4709
WORLD'S FOREMOST BANK	N- CABELA'S VISA CLASSIC (REWARDS)	15.2	V	1	20	0	1,6,	(800) 850-8402
YORK STATE BANK AND TRUST COMPANY	N- VISA	14.0	F	0	20	0	3,4,6,9,10,	(402) 362-4411
ZIONS FIRST NATIONAL BANK	R- VISA CLASSIC	15.0	V	1	25	0	2,4,6,10,	(888) 758-5349

Source: http://www.federalreserve.gov/Pubs/shop/survey.htm

Women & Money: Fed's credit-card proposals offer needed protections

In early May, the Federal Reserve issued a series of new proposals designed to curtail some of the more egregious practices of the credit-card industry, while also requiring card companies to better disclose their rules to customers.

Currently in the United States, there is more than $900 billion in outstanding debt, much of it accruing interest at rates well above 15 percent and susceptible to arcane rules and practices that generate major fee revenue for the credit-card companies.

But I suppose we'll have to be grateful for this better-late-than-never approach. And the Fed's proposed rule changes do offer some solid consumer protections:

Credit-card issuers wouldn't be able to arbitrarily increase the interest rate on your card. There would have to be a concrete reason for raising the rate, such as failure to make the minimum payment by the due date, or a change in the underlying index that's used to set the interest rate.

Statements would have to be mailed at least 21 days before the payment is due rather than the current minimum of 14 days. This is intended to make it less likely that credit-card issuers can catch cardholders off-guard by moving up a due date, so the cardholder ends up making a late payment. With late fees averaging $39, it's easy to see why card companies have been happy to push customers into being late.

Card issuers would be prohibited from using your payments to pay down only your balances with the lowest interest rate. This practice has been a credit-card company favorite: Lure new customers in with a low introductory rate for a balance transfer, then impose a high interest rate on new charges or cash advances. Then, when the cardholder makes a payment, it's credited to the low-rate balance rather than the higher-rate debt. The new regulations would require that at least a portion of every payment be credited to your high-rate debt.

The two-cycle billing system would be abolished. This practice, used by many card issuers, creates a higher balance due for cardholders who have an unpaid balance only from time to time.

A year ago, Congress held hearings to learn more about credit-card billing practices. No legislation ever came out of those hearings. A few of the major credit-card issuers called to the Hill to testify tried to play nice by voluntarily rescinding their use of Universal Default. That's the system whereby you can pay your credit-card bill on time, yet still see your interest rate skyrocket if the card issuer happens to notice you didn't pay one of your other bills - completely unrelated to your credit card - on time.

At the end of April, Sen. Christopher J. Dodd (D., Conn.) introduced the Credit Card Accountability, Responsibility and Disclosure Act.

I was especially interested in a few new items in Dodd's bill that the Fed didn't address:

Require card companies to show account holders the total time and total expense they'll incur if they choose to pay only the minimum balance due each month. I would have liked it if this proposal went one step further: Show by how much both the time and total payment would decrease if the cardholder paid 1 percent, 2 percent and 3 percent more than the minimum amount due each month. Showing those figures side by side with what happens if you pay just the minimum is motivation for paying more each month.

Curtail credit-card companies from pushing credit-card offers on consumers under age 21. Under the new bill, these young adults would have to initiate contact with the card company to apply for a card.

CIBC selling U.S. credit card issuer

CIBC is selling its stake in credit card company Juniper Financial Corp. for $383 million to Barclays Bank PLC.

The sale is expected to close by the end of the year, and result in CIBC recording a $46 million after-tax gain.

CIBC bought a 51 per cent stake in Juniper in 2001. The bank later increased its stake in the company to 98 per cent.

Based in Wilmington, Delaware, Juniper has roughly 700,000 accounts and $1.4 billion in receivables. The company issues credit cards for several companies, including Midwest Airlines, Best Western and Caesars Entertainment.

The Juniper sale is the latest sale of U.S. assets by CIBC. In December 2003, CIBC World Markets announced the sale of its U.S. Oppenheimer private client and asset management division to New York brokerage house Fahnestock Viner Holdings. The $400 million deal gave CIBC the right to acquire more than a third of Fahnestock.

Shares of CIBC slipped 30 on Wednesday, closing at $64.50 on the TSX.

Consumer Credit Counseling: Credit Card Issuers' Perspectives

Mark J. Furletti
Federal Reserve Bank of Philadelphia


September 2003


Abstract:
On Friday, May 23, 2003, the Payment Cards Center hosted a workshop led by collections managers from J.P. Morgan Chase and Juniper Bank. The managers provided the credit card issuers' perspective on the consumer credit counseling industry. The day's discussion complemented an earlier workshop at which representatives from local consumer credit counseling services (CCCS) discussed their business model. After describing the ways in which new market entrants have affected the counseling industry, the issuers discussed the challenges associated with administering and appropriately valuing the services of various agencies. This paper provides highlights from the workshop discussions.

Credit Card Issuer Profitability in a Difficult Economy: Issuers Must Focus on Interest..

Credit Card Issuer Profitability in a Difficult Economy: Issuers Must Focus on Interest Income While Balancing against Increased Default Risk

DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/744dd5/credit_card_issuer)
has announced the addition of Javelin Strategy & Research's new report
"Credit Card Issuer Profitability In a Difficult Economy: Issuers must
Focus on Interest Income While Balancing Against Increased Default
Risk" to their offering.

  Credit card issuers face increased pressure to maintain
profitability in this difficult economic environment, with cardholder
spending curtailed and rising default risk among a larger percentage
of consumers. Losses in lines of business other than credit card
issuance have affected institution-wide approach to risk--particularly
risk of default among credit cardholders--and therefore the approach
that card issuers can take in acquisition and ongoing management of
cardholder lines of credit. This Javelin report uses robust consumer
data and executive survey data to provide understanding of consumer
and issuer reaction to economic difficulties, and prescriptive plans
of action to create opportunities for card issuers, leveraging
economic difficulties for competitive advantage.

  Primary Questions

  - What are consumer behavior changes vis-a-vis their credit card
usage as a result of the economic downturn?

  - How are credit card issuers reacting to changes in cardholder
behavior and in the economy?

  - What is the best way for credit card issuers to maintain a
balance between profitability and risk against default?

  - Which segments of the consumer population pose a higher risk of
credit card default?

  - How should issuers alter policy with regards to more risky
cardholders?

  Methodology

  The consumer data in this report is based on data collected online
from a random-sample panel of 1,500 respondents in April 2008. The
survey targeted respondents based on representative proportions of
gender, age and income as compared to the overall U.S. online
population. Overall margin of sampling error is +/-2.53 percentage
points at the 95% confidence level. Executive data is based on an
online survey collected from a sample of 13 credit card industry
executives at top-tier credit card issuers in May 2008. Among issuers
surveyed, 54% have issued more than 5 million cards, 8% have issued
between 1 and 5 million cards, and 38% have issued less than 1 million
cards.

  Audience:

  -Credit Card issuers

  -Specifically portfolio managers

  -Product development and product marketing managers

  -Card networks

  Key Topics Covered:

  Overview

  Primary Questions

  Findings and Analysis

  Methodology

  Executive Summary

  The Economy Affects Financial Institutions' Credit Card Issuance
Policies

  Decreased Consumer Spending and Potential Shift to Interest Income
for Card Issuers is Not Without Risks--Political and Otherwise

  Consumers Attempt to Reduce Credit Card Usage, But are Less Able
to Pay Off Balances

  Interchange Revenue May Suffer in the Immediate Term as Consumers
Curtail Spending

  Potential for Increased Consumer Reliance on Credit Cards as
Recession Wears On

  Consumers Show Increased Difficulty in Paying Off Credit Card Debt

  Card Issuers Face Increased Regulation and Scrutiny with Regards
to Interest Rate Policies

  Over Half of Credit Card Issuers Surveyed Suffered Exposure and
Losses

  Does the Economy Pose a Threat or Present an Opportunity?

  Issuers Cut Back Lines of Credit as a Response to Losses and
Exposure

  More than Half of Middle-Aged Consumers Less Able to Save

  Economic Difficulties Lead Middle-Aged Consumers to Cut Back
Credit Card Usage

  Economic Situation Results in More Credit Card Debt for
Middle-Aged Consumers

  Build or Buy: Vendor Solutions from the Credit Bureaus Intend to
Find the Balance and Allay Risk for Issuers

  Level of Trust in Financial Institutions Drops Among Middle-Aged
Consumers

  Issuers Constrict Acquisition of New Cardholders: Opportunity for
Aggressive Issuers

  Mirror Image: One-Third of Issuers Expand Acquisition

  Monitor Middle Income Consumers Closely to Maintain the
Risk-Opportunity Balance

  Credit Card Charge Off Rates Increase Over the Past Several
Quarters

  Consumer Credit Outstanding Also Shows Increases 2007 to Early
2008

  Gas Purchases and Other Staple Purchases are of Particular
Interest in Shifting Behaviour

  Appendices: Additional Consumer and Executive Information

  Table of Figures

  Figure 1: Economic Impact of Various Consumer Behaviours

  Figure 2: Financial Institutions Suffering Losses due to Economic
Conditions

  Figure 3: Financial Institution Reaction to Economy with Existing
Cardholders

  Figure 4: Consumer Ability to Save as a Result of the Economy by
Age

  Figure 5: Credit Card Usage Changes as a Result of the Economy by
Age

  Figure 6: Ability to Pay off Credit Card as a Result of Economic
Changes by Age

  Figure 7: Consumer Trust in Financial Institutions by Age

  Figure 8: Issuer Constriction of Cardholder Acquisition

  Figure 9: Issuer Expansion of Cardholder Acquisition

  Figure 10: Consumer Ability to Pay off Credit Card by Income

  Figure 11: Credit Card Chargeoffs by Quarter

  Figure 12: Credit Card Outstanding by Time Period

  Figure 13: Specific Behaviour Spending Changes among Consumers

  Figure 14: Credit Card Usage by Income

  Figure 15: Purchase of Luxury Good by Age

  Figure 16: Purchases of Luxury Goods by Income

  Figure 17: Credit Card Balance Changes by Age

  Companies Mentioned:

  - Equifax

  - Experian

  - Fair Isaac

  - TransUnion

  For more information visit
here

Research and Markets
Laura Wood
Senior Manager
press@researchandmarkets.com
Fax from USA: 646-607-1907
Fax from rest of the world: +353-1-481-1716

Copyright Business Wire 2008

Card issuers target teens for latest plastic attacks

Your 16-year-old has just received a major credit card with his name on it and a $1,000 spending limit. If you dropped him off at the mall, or left him home alone to shop online, would he have the knowledge and maturity to use it wisely?

If that scenario makes you nervous, like giving him the car keys the first time, he might not be ready to charge forth into the tricky world of plastic money.

Many teens don't know enough about borrowing to use a credit card, but issuers know a lot about them, and they want their business.

Credit card companies, which keep a hawk's eye on demographics, are swooping down on young consumers. Initiating the quest for kids under age 18 is Capital One, one of the nation's leading issuers.

The Virginia-based company is targeting high school juniors and seniors with a co-signed MasterCard that is solicited through the Internet and mailings addressed to their parents.

The card has a stiff 19.8 percent fixed annual percentage rate and no annual fee. Credit limits range from $200 to $1,000. The child gets the card -- and the bill -- in his or her name, but the parents are legally responsible for the account.

"We've had the program for a long time and it's done really, really well," says spokeswoman Diana Don. "A lot of people in this age range already have an income and a credit bureau report."

Market is ripe for picking
The minor-age market is ripe for the picking. The number of teenagers is growing and they're spending more money.

There are 31.3 million kids between the ages of 12 and 19 in the United States -- about 11 percent of the population -- according to Teen Research Unlimited of Northbrook, Ill. Their numbers are expected to increase until at least 2010.

More teens are working full- or part-time jobs and spending their own money -- as well as a little more of mom and dad's. In 2006, youngsters shelled out $195 billion of their own green, compared with $94 billion in 1999, according to a Harris Group survey.

A lot of that money is being spent online. Jupiter Communications estimates that teens accounted for $1.2 billion in Internet spending by 2002.

"Teens are becoming increasingly powerful consumers and are trusted more and more by their parents to make family purchase decisions," Teen Research's president Peter Zollo said when the survey was released last October. "Teens know what they want and are savvy when it comes to efforts to market to them."

Encouraged by those numbers, and the fact they have saturated the adult card market, issuers are eyeing post-pubescent, Internet-savvy consumers.

"It was college students and now it's getting younger," says Dara Duguay, executive director of the Jump$tart Coalition for Personal Financial Literacy. "I've noticed it within the last year really heavily."

Are teens ready for plastic?
Jump$tart, a nonprofit organization based in Washington, D.C., says these fresh young things aren't ready for plastic. Every other year, the group quizzes 12th-graders in public schools around the country on topics such as paying taxes, using credit cards and retirement savings.

On average in 2006, participants answered only 52.4 percent of the questions correctly, a failing grade. This was marginally better than the results of the 2004 survey (52.3 percent). The lowest was in 2000, when students scored an average of 50.2 percent.

Duguay blames the failure on the lack of personal finance teaching in schools. Jump$tart's goal is to ensure that students are financially competent by the time they graduate from high school.

She says parents have to get involved if they are going to allow their children to use credit cards. "It takes supervision. If a parent has a co-signed card, they need to sit down with them and show them what interest rates are.

"Credit cards can be a useful thing as long as they're monitored. They can be an opportunity to learn before going into the adult world."

A learning opportunity
Jump$tart, along with myvesta.org, formerly Debt Counselors of America, helped Capital One develop brochures that are stuffed into their teen customers' monthly credit card statements. The inserts explain subjects such as introductory rates, understanding the card statement, how compounding interest works and managing finances.

"We get letters all the time from parents saying the card is a really good tool," says Don.

Other issuers seem to be watching and waiting before they jump into the teen segment. "We do perceive it as an interesting market," says Deborah J. Pulver, spokeswoman for Fleet Financial, another top card issuer.

"That's not to say we won't do something in the future. We need to make sure there is an educational component with that as well."

Issuers such as Capital One who are reaching out to minors with major credit cards must follow the same federal disclosure laws they do for marketing to adults. Whether they are selling by mail, telephone or the Internet, banks are required to reveal costs such as annual fees and finance charges.

"Before the customer pays, the seller has to disclose who they represent, the nature of the goods and services and the total cost," says Carole Danielson, an investigator in the Federal Trade Commission's division of marketing practices.

Usually school districts have control
Other rules -- such as whether card companies can visit high school campuses the way they do colleges -- fall to the states. States, in turn, usually give that authority to local school districts.

If the policies of two of the nation's largest districts are any indication, parents don't have to worry about card companies setting up sales tables at their kids' high schools.

"If it's flat-out solicitation, we don't allow it," says Janet Cass, who works for the Broward County School District, which includes the greater Fort Lauderdale-Hollywood, Fla., area and is the nation's fifth largest. "If the sole purpose is to come in and sell a product, such as signing up kids for credit cards, there is no educational value in that."

The Los Angeles Unified School District, the nation's second largest, also prohibits solicitation on school grounds. "We do not allow commercial ventures to come on to our campuses," says Dan Isaacs, assistant superintendent for school operations.

Cass says a lender might be allowed to talk to students about credit card use and financial management, but those requests are carefully screened by a committee that scrutinizes lecture outlines and materials.

Card companies still have ways of branding their names on young brains. Many schools work with corporations to sponsor events. As a result, the lender might be allowed to hang a banner in the gym or stadium.

Cass, who works in the Broward district's partnership division, says they are approached by all sorts of interests. "You see companies just drooling over the large market of kids," she says. "They are a captive audience."

She says American Express is very involved with the district, paying for luncheons and other events.

"It's a public relations move to get their name in front of kids and parents," she says.

Isaacs says credit card companies can advertise in the school newspaper "just like they would in any paper."

Most credit card forms stipulate that the applicant must be 18 years old, but just as there is no way to ensure a mischievous minor won't sneak away to puff a cigarette or swig alcohol, there is no guarantee a credit card won't fall into the wrong hands.

"A few years ago, I had a 6-year-old cousin who found a credit card application," relates Cass. "He took it upon himself to fill it out and mail it in. They sent him a credit card in his name.

"He's 13 now and his mom still has it taped to the refrigerator," she says. "I guess he had a pretty clean credit report."