Regulation

Debit card issuers' rewards programs are already being rewritten — and in some cases eliminated — in advance of the Federal Reserve's new interchange rules.

West Virginia Attorney General Darrell McGraw today announced settlement agreements with three unlicensed collection agencies that will result in an estimated $1.3 million in cancelled debts for 161 West Virginia consumers and $15,337 in cash refunds, according to a news release.

The U.S. Supreme Court on Nov. 9 will hear oral arguments in a case that may determine whether card issuers may handle customer disputes through arbitration or potentially more costly class-action lawsuits, industry experts say.

Collection agency Unicredit America Inc., based in Erie, Pa., agreed Tuesday to cease collection tactics that Pennsylvania regulators say included a sham courtroom where customers were summoned, see story.

More than half a year after the centerpiece protections of a sweeping overhaul of credit card regulation took effect, portfolio yields appear to have stabilized at their highest levels in two decades.

The outcome of Tuesday’s Election Day results could have meaningful implications for the card industry, including affecting the odds of credit card interchange legislation emerging next year, analysts at New York-based equity firm Keefe, Bruyette & Woods said in a report released Monday.

Effective Jan. 1, merchants and payments companies must ensure their systems comply with versions 2.0 of the Payment Card Industry and Payment Application data-security standards the PCI Security Standards Council released Oct. 28.

Setting a limit on credit card interest rates could adversely affect several government programs seeking to provide Filipinos with financial services, contends the Bankers Association of the Philippines regarding plans in that country to cap card interest rates.

Progress in the creation of the Single Euro Payments Area continues, but the banking industry still will not meet the voluntary December 2010 deadline for SEPA credit transfers and direct debits, contends the European Central Bank, which now is encouraging European legislators to set a mandatory timeline.

Despite reporting a strong third quarter, American Express Co. remains focused on challenging a U.S. Department of Justice lawsuit over alleged merchant steering and how it might affect the brand’s cardholders.