CHICAGO - (07/07/05) -- A report by The Woodstock Institutesuggests the credit card industry employs deceptive practices tomake more money off of credit card consumers but pointed out thatcredit unions have fewer fees, lower fees, lower default rates andclearer terms and conditions than other card issuers. "BlindfoldedInto Debt: A Comparison of Credit Card Costs and Conditions atBanks and Credit Unions" documents " the highly confusing terms andconditions now used in the credit card industry" and how thiscontributes to the rising levels of consumer debt. "While banksadvertise 0% annual percentage rates for balances transferred totheir card, only the fine print reveals that they charge a balancetransfer fee, usually a percent of the amount transferred, for theservice," The Woodstock Institute said. "Banks are twice as likelyto charge fees on balance transfers and cash advances than creditunions."
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The Jackson, Mississippi, company will use proceeds from the sale of its Fisher Brown Bottrell Insurance unit to restructure its investment portfolio, moving $1.6 billion of low-yield securities off the balance sheet.
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The store-branded card issuer is raising annual percentage rates and adding fees for paper statements to compensate for lost revenue. The Consumer Financial Protection Bureau's new regulation is scheduled to take effect on May 14.
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At the banks' annual meetings, shareholders at both companies struck down proposals that would have split the board chair and CEO roles. Two other proposals also failed to win shareholder support, one concerning energy financing and another on pay gap analysis.
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Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
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The ABA is testing an information-exchange network to allow banks to share their fraud data with each other. Companies including Baselayer are also building solutions.
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Republicans on the House and Senate Small Business committees are accusing the SBA of being irresponsible in granting Funding Circle permission to participate in its flagship loan-guarantee program.
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