NEW DELHI: Amid fears of default rates going up in the wake of high inflation and global slowdown, banks and card issuers in India are going slow in issuing credit cards. Industry insiders indicate that the annual growth rate in the industry could slip to 20-25% by the end of FY09 from 30-35% being recorded over the last few years.
The ongoing credit crisis has prompted banks to take a cautious approach as far as lending is concerned. They are now increasingly looking at tapping the mid and high income group to ensure repayment.
“Banks are becoming careful about unsecured lending at this critical juncture when the economy is slowing down and prices are moving northwards,” said Standard Chartered general manager & head cards & personal loans RL Prasad. He added that the credit card division of StanChart will not be impacted as it caters primarily to the high and premium income group.
American Express vice-president (marketing) Amit Dutta said: “We cater to the affluent segment whose annual income is above Rs 8 lakh per annum. Repayment is generally a problem with those in the lower-income group.”
With rise in inflation, interest rates for home loans and other consumer loans have gone up. This has shrunk the disposable income of consumers and boosted card usage in India. Plastic money usage in India has gone up significantly by as much as 15% over the last few months as consumers have shifted their cash purchases to credit cards to defer payments.
Experts caution that while average spends on credit cards is on the rise, there are fair chances of default rates going up. “The number of customers defaulting on credit card payments is likely to increase by the end of this financial year and the industry may witness some strain on repayment in certain categories in the months to come,” said Credit Card Management Consultancy (CCMC) director Vijay Mehta.
At present, the default rates for payments is around 7.5-9%, according to a CCMC data. Consumers in India spend an average of Rs 4,000 a month on their cards. That is significantly less when compared to other Asian nations such as China, Japan, Korea and Thailand.
Indians spend just 1% of their total purchases through credit cards, while the world average stands at 9%. There are currently 25 million credit cards in the country of which only 40% is active.
Banks and credit card issuers fear default rates are expected to go up in the wake of high inflation and global slowdown.
They are now increasingly looking at tapping the mid and high income group to ensure repayment.
Credit card usage has gone up significantly as consumers have shifted their cash purchases to cards to defer payments.
News Source : http://economictimes.indiatimes.com/
Monday, October 6, 2008
Wednesday, October 1, 2008
Discover(R) Small Business WatchSM:Small Business Economic Confidence Falls Sharply
3 out of 4 Small Business Owners Expect More National Economic Decline ELECTION POLL: WHICH PARTY BEST REPRESENTS SMALL BUSINESS? Owners Share Party Preferences and Expectations for Next President
RIVERWOODS, Ill., Sep 29, 2008 (BUSINESS WIRE) -- Economic confidence among small business owners declined sharply in September amid rising concerns about economic conditions for their businesses and a bleak vision of where the economy is headed. The Discover(R) Small Business WatchSM fell to 74.6 in September, down 12.3 points from August.
"Even though we had two months of rising confidence, this month's drop isn't surprising given the constant stream of uninspiring news about the housing and lending markets, as well as the turmoil on Wall Street," said Ryan Scully, director of Discover's business credit card. "But when you look closer at the numbers, cash flow issues are steady and there is little change in their intentions for business development spending."
"The real mover of this month's confidence level is the overall sense that the economy is getting worse," Scully said. "That number dropped 13 percentage points, and the number of those who think the economy is getting better hit an all-time low of only 7 percent."
September Key Findings:
-- 42 percent of small business owners say they have experienced cash flow issues over the last 90 days, unchanged from August.
-- 51 percent believe economic conditions for their businesses are getting worse, up from 44 percent in August.
-- The number of small business owners who think the U.S. economy is getting worse rose to 73 percent from 60 percent in August; only 7 percent of small business owners feel the economy is getting better, the lowest rating in the Watch's history.
-- 57 percent rate the economy as poor, up from 51 percent in August; 32 percent rated it fair, 10 percent rated it good and 1 percent rated it excellent.
-- 28 percent plan to increase spending on business development over the next six months, which is unchanged from August; 44 percent plan to decrease spending and 26 percent anticipate making no changes.
News Source : http://www.marketwatch.com/
RIVERWOODS, Ill., Sep 29, 2008 (BUSINESS WIRE) -- Economic confidence among small business owners declined sharply in September amid rising concerns about economic conditions for their businesses and a bleak vision of where the economy is headed. The Discover(R) Small Business WatchSM fell to 74.6 in September, down 12.3 points from August.
"Even though we had two months of rising confidence, this month's drop isn't surprising given the constant stream of uninspiring news about the housing and lending markets, as well as the turmoil on Wall Street," said Ryan Scully, director of Discover's business credit card. "But when you look closer at the numbers, cash flow issues are steady and there is little change in their intentions for business development spending."
"The real mover of this month's confidence level is the overall sense that the economy is getting worse," Scully said. "That number dropped 13 percentage points, and the number of those who think the economy is getting better hit an all-time low of only 7 percent."
September Key Findings:
-- 42 percent of small business owners say they have experienced cash flow issues over the last 90 days, unchanged from August.
-- 51 percent believe economic conditions for their businesses are getting worse, up from 44 percent in August.
-- The number of small business owners who think the U.S. economy is getting worse rose to 73 percent from 60 percent in August; only 7 percent of small business owners feel the economy is getting better, the lowest rating in the Watch's history.
-- 57 percent rate the economy as poor, up from 51 percent in August; 32 percent rated it fair, 10 percent rated it good and 1 percent rated it excellent.
-- 28 percent plan to increase spending on business development over the next six months, which is unchanged from August; 44 percent plan to decrease spending and 26 percent anticipate making no changes.
News Source : http://www.marketwatch.com/
Tuesday, September 30, 2008
Student shops with stolen credit cards, held
LUCKNOW: One person was arrested in connection with purchasing cellphones from a store in a shopping mall in Gomtinagar on stolen credit cards. T
he arrested identified himself as Gaurav Robinson of Indiranagar. According to the police, Gaurav is pursuing his BCA.
The police recovered from the accused two cellphones that he had purchased on the credit cards that belonged to Vikas Jhunjhunwala and Rakesh Verma. During interrogation, the accused revealed that he along with another aide of his, had snatched away the bag of a courier company employee (on September 25) which contained the credit cards he used to purchase the cellphones. Cops have even recovered the motorcycle used for executing the aforementioned loot.
Robinson told police that he along with two others has also been involved in several chain-snatching incidents in the recent past.
This is not for the first time that such a case has come to light where things have been purchased by using stolen credit cards. A couple of months ago three men were arrested by the district police as they were purchasing electronic appliances worth lakhs on a credit card that did not belong to them.
The arrested had identified themselves as Dhirendra Singh Chauhan, Abhinav Gupta and Amit Kumar Sharma. The incident was reported from Hazratganj police circle. According to the complaint lodged the accused in the case were purchasing laptops and other electronic appliances through a credit card which Amit Kumar claimed to be his own.
As one requires to give an identification proof in case of a purchase of more than Rs 10,000 by credit card, Amit was asked by the dealer to present his ID proof. Amit reportedly presented a forged ID proof which aroused the suspicion of the dealer and he informed the police. Later the three were arrested after a case was lodged against them.
News Source : http://timesofindia.indiatimes.com/
he arrested identified himself as Gaurav Robinson of Indiranagar. According to the police, Gaurav is pursuing his BCA.
The police recovered from the accused two cellphones that he had purchased on the credit cards that belonged to Vikas Jhunjhunwala and Rakesh Verma. During interrogation, the accused revealed that he along with another aide of his, had snatched away the bag of a courier company employee (on September 25) which contained the credit cards he used to purchase the cellphones. Cops have even recovered the motorcycle used for executing the aforementioned loot.
Robinson told police that he along with two others has also been involved in several chain-snatching incidents in the recent past.
This is not for the first time that such a case has come to light where things have been purchased by using stolen credit cards. A couple of months ago three men were arrested by the district police as they were purchasing electronic appliances worth lakhs on a credit card that did not belong to them.
The arrested had identified themselves as Dhirendra Singh Chauhan, Abhinav Gupta and Amit Kumar Sharma. The incident was reported from Hazratganj police circle. According to the complaint lodged the accused in the case were purchasing laptops and other electronic appliances through a credit card which Amit Kumar claimed to be his own.
As one requires to give an identification proof in case of a purchase of more than Rs 10,000 by credit card, Amit was asked by the dealer to present his ID proof. Amit reportedly presented a forged ID proof which aroused the suspicion of the dealer and he informed the police. Later the three were arrested after a case was lodged against them.
News Source : http://timesofindia.indiatimes.com/
Monday, September 29, 2008
Fitch SMARTView: 13 U.S. Credit Card ABS Deals Placed 'Under Analysis'
NEW YORK, Sep 23, 2008 (BUSINESS WIRE) -- Fitch Ratings has placed 13 of its U.S. Credit Card ABS deals 'Under Analysis', indicating that Fitch will be issuing a rating action within 30 days. SMARTView is Fitch's ongoing monthly surveillance process, with the 'Under Analysis' designation given to those deals which Fitch plans to further analyze over the next month. Of the 92 Fitch rated U.S. Credit Card ABS transactions, 79 U.S. Credit Card ABS deals were designated with a SMARTView date of Sep. 23, 2008, indicating that no in depth review is necessary.
As Fitch receives monthly information on structured finance transactions from trustees and servicers, Fitch analysts run the data through various internal algorithms that identify classes of a transaction as possible candidates for upgrade or downgrade. Fitch's analysts scrutinize the output to decide which deals need an in depth review, which are classified as 'under analysis', and those deals with no significant changes, which can be given a SMARTView date.
To review a list of deals 'Under Analysis', use the following link: www.fitchratings.com/smartview
SMARTView is available on the Fitch Ratings web site at www.fitchratings.com, along with the report titled 'SMARTView, Fitch U.S. Structured Finance Monthly Public Reviews'.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
News Source : http://www.marketwatch.com/
As Fitch receives monthly information on structured finance transactions from trustees and servicers, Fitch analysts run the data through various internal algorithms that identify classes of a transaction as possible candidates for upgrade or downgrade. Fitch's analysts scrutinize the output to decide which deals need an in depth review, which are classified as 'under analysis', and those deals with no significant changes, which can be given a SMARTView date.
To review a list of deals 'Under Analysis', use the following link: www.fitchratings.com/smartview
SMARTView is available on the Fitch Ratings web site at www.fitchratings.com, along with the report titled 'SMARTView, Fitch U.S. Structured Finance Monthly Public Reviews'.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
News Source : http://www.marketwatch.com/
Saturday, September 27, 2008
Troopers: Bronx man used ex-NYC Mayor Dinkins' former credit card number
SOUTHEAST - A Bronx man faces several felony charges after he was found carrying an American Express credit card with an account number that once belonged to former New York City Mayor David Dinkins, state police said today.
The suspect was arrested after impersonating another man while trying to withdraw thousands of dollars from the man's bank account, police said.
Troopers from the Brewster barracks responded to the Chase Bank branch inside the A&P Supermarket in the Lakeview Plaza on Route 22 around 4:40 p.m. yesterday. Bank employees became suspicious when the man tried to withdraw $4,900 from an account, Sgt. Joseph Malorgio said.
An investigation by Malorgio, Trooper Miguel Osorio and Investigator Armando Barquin showed that Christopher Bowman, 46, of the Bronx impersonated the actual account holder in an attempt to fraudulently withdraw the funds, police said.
Bowman was found with a bogus Louisiana state driver's license In addition to the American Express card, police said. Dinkins had canceled the American Express account after himself being a victim of fraud, police said.
Bowman was charged with attempted third-degree grand larceny, second-degree criminal possession of a forged instrument, second-degree forgery, felonies, and second-degree criminal impersonation, a misdemeanor, police said.
He is being held today at the Putnam County jail in lieu of $25,000 cash bail or $50,000 bond, as set by Town Justice Richard Vercollone, and is due back in town court on Tuesday, police said.
Barquin is continuing the investigation, police said.
News Source : http://lohud.com/
The suspect was arrested after impersonating another man while trying to withdraw thousands of dollars from the man's bank account, police said.
Troopers from the Brewster barracks responded to the Chase Bank branch inside the A&P Supermarket in the Lakeview Plaza on Route 22 around 4:40 p.m. yesterday. Bank employees became suspicious when the man tried to withdraw $4,900 from an account, Sgt. Joseph Malorgio said.
An investigation by Malorgio, Trooper Miguel Osorio and Investigator Armando Barquin showed that Christopher Bowman, 46, of the Bronx impersonated the actual account holder in an attempt to fraudulently withdraw the funds, police said.
Bowman was found with a bogus Louisiana state driver's license In addition to the American Express card, police said. Dinkins had canceled the American Express account after himself being a victim of fraud, police said.
Bowman was charged with attempted third-degree grand larceny, second-degree criminal possession of a forged instrument, second-degree forgery, felonies, and second-degree criminal impersonation, a misdemeanor, police said.
He is being held today at the Putnam County jail in lieu of $25,000 cash bail or $50,000 bond, as set by Town Justice Richard Vercollone, and is due back in town court on Tuesday, police said.
Barquin is continuing the investigation, police said.
News Source : http://lohud.com/
Friday, September 26, 2008
Alliance Data Signs New Multi-Year Agreement to Launch Co-Brand Credit Card Program
DALLAS, Sept. 25 /PRNewswire-FirstCall/ -- Alliance Data SystemsCorporation (NYSE: ADS), a leading provider of loyalty and marketing solutionsderived from transaction-rich data, today announced it has signed a multi-yearagreement with AnnTaylor Stores Corporation (NYSE: ANN) to launch a newco-brand credit card program and to continue providing private label creditcard services. The agreement terms include launching a new co-brandMasterCard(R) credit card program and an exclusive points-based rewardsprogram for cardholders.
(Logo: http://www.newscom.com/cgi-bin/prnh/20051024/ADSLOGO )
The services Alliance Data provides for both the co-brand and privatelabel credit card programs include account acquisition and activation;receivables funding; card authorization; card issuance; statement generation;direct mail and email marketing services; remittance processing; customerservice functions; and marketing services. Alliance Data will launch fourall-new card-plastic designs for Ann Taylor, including private label andco-brand cards for both the company's Ann Taylor and Ann Taylor LOFT brands.As is consistent with the private label credit card program, the co-brandoffering will be targeted to customers that meet Alliance Data's traditionalcredit quality standards.
Ivan Szeftel, president of Alliance Data's Retail Services, said, "We areexcited about expanding our relationship with Ann Taylor by providing thisfully integrated credit and marketing solution. Our programs are guided byanalytics and results-oriented marketing principles, and we are leveraging ourexpertise and the strength of the Ann Taylor brands to deliver a truly specialprogram to their clients."
About Alliance Data
Alliance Data (NYSE: ADS) is a leading provider of loyalty and marketingsolutions derived from transaction-rich data. The Company manages more than107 million consumer relationships for some of North America's mostrecognizable companies. Through the creation and deployment of customizedsolutions that change consumer behavior, Alliance Data enables its clients tocreate and enhance customer loyalty to build stronger, mutually beneficialrelationships with their customers. Headquartered in Dallas, Alliance Dataemploys approximately 7,000 associates at more than 50 locations worldwide.Alliance Data is a leading provider of marketing-driven credit solutions, andis the parent company of Epsilon(R), a leading provider of multi-channel,data-driven technologies and marketing services, and LoyaltyOne(TM), whichowns and operates the AIR MILES(R) Reward Program, Canada's premier coalitionloyalty program. For more information about the company, visit its web site,www.AllianceData.com.
News Source : http://www.ibtimes.com/
(Logo: http://www.newscom.com/cgi-bin/prnh/20051024/ADSLOGO )
The services Alliance Data provides for both the co-brand and privatelabel credit card programs include account acquisition and activation;receivables funding; card authorization; card issuance; statement generation;direct mail and email marketing services; remittance processing; customerservice functions; and marketing services. Alliance Data will launch fourall-new card-plastic designs for Ann Taylor, including private label andco-brand cards for both the company's Ann Taylor and Ann Taylor LOFT brands.As is consistent with the private label credit card program, the co-brandoffering will be targeted to customers that meet Alliance Data's traditionalcredit quality standards.
Ivan Szeftel, president of Alliance Data's Retail Services, said, "We areexcited about expanding our relationship with Ann Taylor by providing thisfully integrated credit and marketing solution. Our programs are guided byanalytics and results-oriented marketing principles, and we are leveraging ourexpertise and the strength of the Ann Taylor brands to deliver a truly specialprogram to their clients."
About Alliance Data
Alliance Data (NYSE: ADS) is a leading provider of loyalty and marketingsolutions derived from transaction-rich data. The Company manages more than107 million consumer relationships for some of North America's mostrecognizable companies. Through the creation and deployment of customizedsolutions that change consumer behavior, Alliance Data enables its clients tocreate and enhance customer loyalty to build stronger, mutually beneficialrelationships with their customers. Headquartered in Dallas, Alliance Dataemploys approximately 7,000 associates at more than 50 locations worldwide.Alliance Data is a leading provider of marketing-driven credit solutions, andis the parent company of Epsilon(R), a leading provider of multi-channel,data-driven technologies and marketing services, and LoyaltyOne(TM), whichowns and operates the AIR MILES(R) Reward Program, Canada's premier coalitionloyalty program. For more information about the company, visit its web site,www.AllianceData.com.
News Source : http://www.ibtimes.com/
Thursday, September 25, 2008
Legislation would require credit card companies to pay all sales taxes collected directly to the state
ALBANY – State Senator Rev. Ruben Diaz Wednesday urged Governor Paterson to support legislation to amend the tax law, in relation to requiring issuers of credit cards and debit cards to pay and collect sales and use taxes and pay those taxes directly to the state Department of Taxation and Finance.
“While the Governor is now pressuring small business owners to properly remit their business taxes in an effort to balance the state’s fiscal needs, Governor Paterson has had an opportunity to do this all session by supporting my legislation, Senate Bill 774, which will ensure that New York State will receive over 500 million dollars in uncollected sales taxes,” said Diaz.
The only ones who are opposed to this legislation are the credit card companies, said Diaz. “They are not going to like this, because it will tell the state how much money they are making in New York. There is no additional cost to the retailer’s or consumers, just an end to sales tax scofflaws.”
News Source : http://www.empirestatenews.net/
“While the Governor is now pressuring small business owners to properly remit their business taxes in an effort to balance the state’s fiscal needs, Governor Paterson has had an opportunity to do this all session by supporting my legislation, Senate Bill 774, which will ensure that New York State will receive over 500 million dollars in uncollected sales taxes,” said Diaz.
The only ones who are opposed to this legislation are the credit card companies, said Diaz. “They are not going to like this, because it will tell the state how much money they are making in New York. There is no additional cost to the retailer’s or consumers, just an end to sales tax scofflaws.”
News Source : http://www.empirestatenews.net/
Subscribe to:
Posts (Atom)