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News Bulletins ArchiveNovember 2008GE Capital Plans Cuts To Save $2 BillionGE Capital expects to cut $2 billion in costs in 2009 as it eliminates jobs, creates regional units and tabs assets including overseas home mortgages to possibly sell during the global financial crisis. (November 19, 2008) Delinquencies Rise at AmEx American Express Co.'s late payments rose 35 basis points to 4.4% in October, a record monthly jump in credit card delinquencies for the company, according to a new report. (November 19, 2008) Southwest Florida Banks Saddled With Debt Florida banks based in Lee and Collier counties are plagued with $418.4 million in bad real estate debt — up from $19.1 million two years ago, according to data from the Federal Deposit Insurance Corp. (November 18, 2008) Cities Sue Arizona Over Collection of $30 million A group of cities and towns in Arizona has filed suit to stop the state from collecting almost $30 million from its members and other government agencies. (November 18, 2008) Target Reports 24% Earnings Drop Target Corp. reported a 24% decline in overall earnings for the third quarter to $369 million from $483 million in the third quarter of 2007, fueled by results in the retailer's credit card portfolio. (November 17, 2008) AmEx Confirms $3.5 Billion TARP Request American Express confirmed that it has asked the federal government for nearly $3.5 billion in capital under the Troubled Asset Relief Program launched to directly invest in financial firms. (November 17, 2008) Cardholder Debt-Forgiveness Plan Rejected The Office of the Comptroller of the Currency this week rejected a plan a banking group and the Consumer Federation of America jointly proposed that would have enabled banks to forgive up to 40% of heavily indebted credit card borrowers’ debt. (November 14, 2008) FDIC Proposes Loan Modification Program to Stem Foreclosures The Federal Deposit Insurance Corp. today proposed a loss-sharing plan designed to stem the tide of home foreclosures by providing incentives to achieve sufficient scale in loan modification programs. (November 14, 2008) NCO Reports Q3 Impairment Charge of $32 Million NCO Group Inc. reported a net loss of $26.5 million for the third quarter ended Sept. 30. The Horsham, Pa.-based collection agency and buyer of distressed consumer receivables had a net loss of $4.6 million during the same period last year. (November 14, 2008) Survey: New Payment Methods Concern Risk Managers While identity theft continues to be a chief concern for financial-institution compliance officers, new forms of payment, including so-called virtual payments, mobile payment and prepaid cards, also pose financial-crime threats, according to a survey from Fortent. (November 13, 2008) Hospitals Write Off Increasing Amount of Bad Debt A growing number of consumers are unable to pay their hospital bills, as many as one-third, according to a recent national survey. (November 13, 2008) FirstCity Reports Q3 Net Loss of $1.8 Million FirstCity Financial Corp. this week reported a net loss of $1.8 million for the third quarter ended Sept. 30. The Waco, Texas-based debt buyer had net earnings of $2.7 million during the same period a year ago. (November 13, 2008) Mortgage Applications Increase Nearly 12% The Mortgage Bankers Association’s Market Composite Index for the week ended Nov. 7 was 425, an increase of 11.9% on a seasonally adjusted basis from 379.9 one week earlier. (November 13, 2008) GE Receives FDIC Backing for Debt General Electric Co. has been hammered this year as the credit crunch has taken a toll on its mammoth GE Capital finance arm, which has businesses ranging from making loans to mid-sized companies to investing in commercial real estate. (November 13, 2008) AmEx Reportedly Seeks Government Funds American Express Co. reportedly is seeking $3.5 billion to $3.8 billion in capital from the federal government's Troubled Asset Relief Program (TARP). (November 12, 2008) Federal Government Modifies Bailout Plans The federal government plans to extend the reach of its $700 billion bailout plan to support non-bank financial institutions that offer consumer credit - including credit cards and auto loans. (November 12, 2008) Credit Card Losses Could Worsen in 2009 U.S. credit card losses have increased this year to an estimated 5% to 7% of total receivables as the economy deteriorated, but there is still more trouble ahead, according to a report from Fitch Ratings. (November 12, 2008) Status Change Enables AmEx to Tap Into Bailout Funds American Express Co.’s conversion to a bank holding company could enable AmEx to tap into some of the government’s $700 billion in bailout funds, which it needs to shore up funding for its core credit and charge card business. (November 11, 2008) Ocwen, State of Maryland Sign Pact to Curb Foreclosures Ocwen Financial Corp. announced yesterday that it has signed an agreement with Gov. Martin O’Malley and the State of Maryland to reduce foreclosures and help consumers stay in their homes. (November 11, 2008) House Prices Fall 2% in September, 13% For The Year House prices fell 2.1% on a national level in September following a 2% decline in the previous month, according to the IAS360 House Price Index. September house prices declined 13.3% compared with the same period a year ago. (November 11, 2008) HSBC USA Charge-Offs Up 52%, Provision for Losses Up 36% HSBC USA Inc. today reported a net loss of $136 million for the third quarter ended Sept. 30. The company reported a $21 million net profit for the same period last year. (November 10, 2008) Revolving Credit Increases Slightly In September U.S. revolving credit, 98% of which is credit card debt, rose slightly to $971.4 billion in September from $970.5 billion the previous month, according to a Federal Reserve G.19 report on consumer credit released Friday. (November 10, 2008) Bad Debt May Force UK Lenders to Impose Unpopular Fees More than two-thirds of consumers in the United Kingdom would choose a credit card with no fees over one with an enticing rewards program, according to a recent survey of 516 UK credit card users. (November 10, 2008) Consumer Complaints Increase As Bad Debt Grows A rapidly increasing number of consumers are complaining about getting harassed and abused by bill collectors. (November 10, 2008) Economy Batters Charged-off Debt Prices A rising supply of charged-off receivables, courtesy of the softening U.S. economy, has dropped prices that secondary buyers are willing to pay for bad debt, while lowering the amount that issuers can expect to recover quickly. (November 10, 2008) Obama Presidency Could Mean Tough Times For Card Issuers Barack Obama’s presidential victory yesterday could mean a tougher environment for credit card issuers if certain legislative proposals he endorsed are re-introduced next year with the Democrat-controlled Congress and minus the threat of veto. (November 5, 2008) Asset Acceptance Capital Reports Q3 Revenues of $58.4 Million Debt buyer Asset Acceptance Capital Corp. yesterday reported net income of $3 million for the third quarter ended Sept. 30, a $4.7 million turnaround from the $1.7 million net loss it reported for the same quarter one year ago. (November 5, 2008) MasterCard Reports Q3 Net Loss Of $194 Million MasterCard Inc. this week reported a net loss of $194 million for the third quarter, compared with net income of $314.5 million for the same period last year. Net revenue during the quarter, which ended Sept. 30, was $1.34 billion, up 24% from $1.08 billion last year. (November 5, 2008) Mortgage Applications Fall 20% To Close Out October The Mortgage Bankers Association’s Market Composite Index for the week ended Oct. 31 was 379.9, a decrease of 20.3% on a seasonally adjusted basis from 476.7 one week earlier. (November 5, 2008) Charge-Offs, Delinquencies Will Rise Well Into 2009 Credit card charge-offs and delinquencies will continue to rise through the first half of next year as issuers rush to control further losses, according to a report released today by Fitch Ratings Inc. (November 3, 2008) October Credit Manager’s Index Reveals An “Increasing Sense Of Doom” The seasonally adjusted Credit Manager’s Index for October fell 2.6 percentage points from the previous month to a record low of 44.8%, according to a report by the National Association of Credit Management. (November 3, 2008) Link Financial Group Partners with European Pension Fund United Kingdom-based debt buyer Link Financial Group last week announced a $402.3 million partnership with an unnamed European pension fund. (November 3, 2008) Please read our Privacy Policy 
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