Credit card issuers, such as Bank of America, have been affected by new laws regarding credit cards. Image: MoneyBlogNewz/Flickr.com/CC-BY

New regulations for credit cards on how interest rates and fees can be assessed are working. However, some loan lenders are lamenting the new rules that require greater disclosure when changing terms with customers. Outlawing guerrilla-style fee and interest raises has led Bank of America and other companies to lose value from credit card units.

Bank of America realizes loss from credit card unit

The largest loan lender in the nation, Bank of America, recently announced that it would be adjusting previously filed financial statements regarding the banks’ credit card unit, according to Bloomberg. B of A announced that it was adjusting a write down of FIA Card services, its credit card unit, for late 2009 from $10.4 billion to $20.3 billion, meaning the credit card unit is worth $20.3 billion less thank it was in 2008. In other words, the company adjusted previous filings to reflect a greater loss of value than previously thought. The write down is not a true cash loss, but an adjustment of the “goodwill” value, or the value of an asset above market value, due to the prestige of the holder of the asset. The bank cited regulatory conditions and “deteriorating credit quality” for FIA Card Services being worth $10 billion less than estimated in 2009.

CARD Act cited for losses

Some credit card loan lenders, such as Bank of America, are claiming that they are being hampered by new regulations, specifically the CARD Act, or Credit Card Accountability Responsibility and Disclosure Act. It is posited that the act means less access to advance cash for further lending, though this means that the law is working. Since the CARD Act was enacted, fewer people have been hit with late fees and stung with sudden interest rate raises, according to CNN.

New card law a smashing success

The CARD Act has yielded some great results. Since the law was passed, studies show that about 2 percent of card holders had interest rates raised, compared to 15 percent before the CARD Act was passed. Late fees, which accounted for $901 million in instant cash for card issuers in January 2010 — before the Act took effect in February 2010 — had dropped to $427 million by November 2010. That means companies from Scottsdale to Birmingham and all over the U.S. that look to seemingly surreptitious practices for revenue are having a harder time, which is what the CARD Act is supposed to do.

Sources

Bloomberg

CNN

Payday advance loans can help prevent late fees

There are many reasons payday advance loans are helpful. When you fall behind on your bills, you get late fees on top of other late fees. They continue to pile, and if you are unlucky enough to be charged a late fee and interest, it will only continue to grow. Taking out a payday advance loan can help get your bills caught up and avoid unnecessary charges to your accounts. Also, if you use a payday loan to pay off those bills, you stay in good standing with your credit company. You won’t be hurting your credit; you can prevent late bills from appearing on your credit history. If you ever need the company to work with you on payments of other sorts, they are more likely to help if you have kept your account in good standing with them. Late fees and payments don’t look as good to the company, so don’t fall behind.

Payday advance loans

Payday advance loans are simple. You typically only have to be older than 18 with steady employment and a bank account to through the application approval process. There are generally no credit checks, so your credit history won’t affect your application at all. (Applicants with no credit and bad credit can still be approved). You can  have your money deposited straight to your bank account and make simple payments back to the loan agency. Approvals only take minutes, so what are you waiting for? Apply now!

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Professional credit card offers are part of a strategy by banks to avoid consumer protections mandated by new credit card rules. Image: Thinkstock

New credit card rules mandated by the Credit Card Accountability and Responsibility and Disclosure Act of 2009 enacted robust consumer protections. But so-called “professional cards” aren’t covered by the CARD Act. Professional cards are immune from consumer protections such as limits on excessive late fees and surprise interest rate hikes. With billions of dollars in late fees and interest payments at stake, credit card companies are trying to convince ordinary consumers that they need a professional credit card, small business credit card or corporate credit card.

Professional cards not protected by CARD Act

Professional credit cards used to be reserved for small business owners or corporate executives. But the Wall Street Journal reports that since the CARD Act was passed in March 2009, credit card companies have been pushing professional cards to people who don’t need them. In an effort to dodge the consumer protections provided by new credit card rules, credit card companies are swamping ordinary consumers with credit card applications. According to the research firm Synovate, 47 million professional credit card offers were mailed in the first quarter of 2010–a 256 percent increase from the same period the year before.

Professional cards set a trap for consumers

Before consumers apply for a professional card, small business credit card or corporate card, they should be aware of several credit risks. Credit Loan reports that banks will apply any payment made over the minimum to the lowest interest balance. This means the higher interest balance is compounding interest until the lower interest balance is paid off. Professional credit cards don’t have to allow 21 days between the date a statement is mailed and the date payment is due, making late payments and late payment penalties more likely. Interest rates can also rise significantly without notice if a payment is made just one day late. Finally, professional credit cards can change interest rates, transaction fees, annual fees and penalty fees terms without any advance notice.

Extending CARD Act protections to small business

New credit card rules don’t apply to professional cards because small businesses get shafted by Congress when it passes laws to protect consumers, according to Bob Sullivan at MSNBC. Sullivan writes that small retailers, for example, suffer the most from credit card fraud. Most consumers who enjoy strong liability protection from credit card fraud aren’t aware that businesses accepting credit cards are often left holding the bag when criminals use stolen cards. Now that a different set of rules for professional cards is being exploited by credit card companies to bait consumers, Sullivan suggests that extending the same protections in the CARD Act to businesses would benefit everyone.

Manage emergencies with a payday cash loan

No matter how carefully you manage your finances, you can’t always control emergencies and unexpected expenses. Whether you need cash until payday to fix a freezer that won’t freeze, a washer that won’t wash or a car that won’t start, a payday cash loan can solve the problem.

Avoid late fees with a payday cash loan

When you’re struggling to make ends meet, late fees and overdraft charges can be enormously frustrating. Ironically or not, the less money you have to work with, the more fees and charges you risk incurring. The more fees and charges you incur, the less money you have left over to pay your bills on time. A payday cash loan can help you avoid a vicious late-fee cycle. A quick payday loan often costs less than the late fee on just one major expense like your rent or mortgage.

Get out of debt quickly with a payday cash loan

When you need to borrow money, a payday cash loan is the best way to make sure you don’t run up a debt you can’t easily pay back. With a payday cash loan, you know exactly how much money you have in the bank, so there’s no risk of overspending. You also know right up front exactly how much the loan costs and when it will be paid back. Generally, a payday cash loan is paid in full in one automatic payment on your next payday. When needed, installment payday loans and installment loans for bad credit let you make smaller payments over a longer term.

It’s easy to apply for a payday cash loan

Applying for a payday cash loan is fast and hassle-free!

• Bad credit or bankruptcy not a problem
• Typically no credit checks for loans up to $1,500
• No faxing necessary
• No collateral required
• Fixed incomes may be acceptable
• Military applications may be acceptable
• Direct deposit to your bank account in as little as two hours, in most cases
• Secure online application protected with 128-bit encryption

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If this is describing your situation, then you need cash in a hurry. Going to a loan officer or loan store may not be quick enough to help you stay in your home. While fax machines are quick, they may not be quick enough.

Enter the No Fax Payday Loans!

No fax payday loans are loans that are applied for online. There is no faxing required, because it is done electronically over the internet. This could make a difference between getting kicked out of your home and being able to stay. An answer will come within a few minutes, and you could have your money within hours. This will give you plenty of time to catch up on your rent payments.

How it Works

Applying for a no fax payday loan is just like applying for any other type of loan. The standard information is required, along with the dates of your next two paydays. For your convenience, you can click on the “Apply” button and you will be taken to the secure form. Fill this out completely and then submit it.

Your application will instantly be forwarded to a lender. You will find out within a few minutes if you are approved, and upon approval, get your money within a few hours. No fax payday loans really are that easy and quick. There is no need to wait around for traditional loan officers to decide your fate based on your faxed information.

Pay it Back!

Don’t forget this one little caveat—pay back your loan as soon as possible to avoid the late fees. Often, when people get a no fax payday loan, they tend to forget this little part of the equation. If you forget to pay back the loan, you may have more problems than just back due rent.

Start your no fax payday loan application HERE!

No one likes the thought of borrowing money. But most of us have had to do it at one time or another. Especially today, with the cost of living soaring and incomes dropping, sometimes you have to get a personal loan just to make ends meet. If you get a personal loan today, and know that you’ll still be able to get by on your next paycheck after paying the loan back, a quick payday loan can solve a lot of problems.

Sometimes it makes good sense to get a personal loan

Needing money means different things to different people. You might be struggling to get by until payday after an uninsured medical emergency. You might be completely out of cash until payday when your car breaks down. You might be piecing your finances back together after overextending them on a recent vacation. You might even own a good house, have a good job, drive a nice car, be current on all your bills, and still find yourself short of cash until payday. Whatever your standard, and whatever your reason, when it makes sense for you to get a personal loan, Personal Money Market is the best place to find one.

Sometimes you can cut your losses when you get a personal loan

When you’re short of cash until payday and are running the risk of late fees or bounced check charges, it can make sense to get a personal loan. Late fees on the rent or mortgage can be significant, and it can cost hundreds of dollars to reconnect the electric service. Credit card companies today are more determined than ever before to collect late fees. Being just one day late on a charge account can really set you back when you’re already scraping to make ends meet.

No one loves to borrow money. On the other hand, there are bigger fees to pay than the price of a quick payday loan.

Anyone who’s ever had to get a personal loan knows what it’s like

Even with the economy in shambles, there are plenty of people who’ve never had to get a personal loan. But there are plenty more of us who struggle to make it from paycheck to paycheck. We know what it’s like to need money so badly that you’re willing to get a personal loan just to get by for a few more days until payday.

Get a personal loan for peace of mind

When you know that you can pay the loan back on payday without having to borrow again, and it feels like a little money in your pocket will change your whole life, paying a few dollars to get a personal loan is worth every penny. You may save money and you may put food on the table; you may make the landlord go away and you may get your car out of hock; but sometimes the peace of mind alone is reason enough to get a personal loan.

Applying for a personal loan is easy: