Crypto monitoring a step further; Did Equifax send inaccurate credit scores?

Equifax sent lenders inaccurate credit scores on millions of consumers

Equifax provided inaccurate credit scores over millions of U.S. consumers seeking loans during a three-week period earlier this year, according to bank executives and others familiar with the errors. Equifax sent the erroneous scores of people applying for car loans, mortgages and credit cards to banks and non-bank lenders large and small, including JPMorgan Chase, Wells Fargo and Ally Financial. Scores were sometimes off by 20 points or more in either direction, enough to change the interest rates offered to consumers or cause their applications to be rejected outright. [The Wall Street Journal]

New Crypto Surveillance Legislation Arrives as Industry Shakes

After 13 years, at least three crashes, dozens of scams and Ponzi schemes, and hundreds of billions of dollars made and evaporated, cryptocurrencies finally have the full attention of Congress, whose lawmakers and lobbyists have papered Capitol Hill with proposals on how to regulate the industry. The latest bipartisan proposal came Wednesday from Sens. Debbie Stabenow, D-Mich., and John Boozman, R-Ark. This would hand over bitcoin and ether regulatory authority to the Commodities Futures Trading Commission. [Associated Press]

Credit card debt rises as inflation pushes Americans to borrow more

Credit card debt rose in the United States from April to June as Americans borrowed billions of dollars to keep spending in the face of rising inflation, according to a report from the Federal Reserve Bank of New York on Tuesday. . Credit card balances increased by $46 billion in the second quarter, a 5.5% increase from the first quarter, and there was also an increase in new credit card accounts. The 13% increase between the second quarter of 2021 and the second quarter of 2022 was the largest of its kind in more than 20 years. [The Washington Post]

Credit card lenders step up offers despite faltering economy

You may notice that you receive more credit card offers in the mail. Despite inflation and fears of a slowing economy, credit card companies are stepping up their efforts to recruit new customers. The Wall Street Journal reports that American Express, Capital One and Discover have all committed new funds to their marketing budgets, suggesting that executives at these lenders believe consumers will continue to spend. In fact, consumers continue to spend despite recession fears. JPMorgan Chase reports that consumers spent more than $271 billion using plastic in the second quarter. That’s 33% more than they spent in the fourth quarter of 2019, just before the Covid-19 pandemic. Many consumers charge more but do not repay the balance. VantageScore reports that Gen Z consumers increased their credit card balances by 30% in the second quarter. [Consumer Affairs]

Contactless cards remain Apple Pay’s biggest competition at checkout, study finds

Apple Pay has extended its lead over the mobile wallet competition over the past 12 months, now capturing 48% of all in-store mobile wallet payments in the US, with second place Google Pay a distant second at 17%. However, mobile wallets remain unpopular for in-store payments, accounting for just 5.8% in Q2 2022, slightly less than in 2019. The biggest threat to Apple Pay at physical checkouts isn’t other mobile wallets, but contactless cards, which captured 14% of in-store payments, nearly double the share seen in 2021. [PYMNTS]

JPMorgan is building a giant travel agency

JPMorgan Chase wants to be your travel agent. Over the past 18 months, the nation’s largest bank has assembled the pieces to launch a full-service travel business where customers can plan and book trips ranging from a simple domestic flight to an extravagant safari. She bought a reservation system, a restaurant review company and a luxury travel agency. It builds its own airport lounges and a force of thousands of travel agents. A new website will be launched in the coming months. Travel has become one of the largest expense categories for banks and credit card issuers, and JPMorgan wants a bigger share of it. The bank hopes to turn these traveling customers into lifelong Chase fans, further appealing to their spending and other financial needs. [The Wall Street Journal]

Bank of England launches biggest interest rate hike in 27 years, predicts long recession

The Bank of England raised interest rates by 50 basis points on Thursday, its biggest increase since 1995, and forecast Britain’s longest recession since the global financial crisis. The sixth consecutive increase takes borrowing costs to 1.75% and marks the first half-point rise since the bank was made independent of the UK government in 1997. The Monetary Policy Committee voted by a majority 8 to 1 in favor of the historic half point. up one point and cited growing inflationary pressures in the UK and the rest of Europe since its previous meeting in May. [CNBC]

A Durbin amendment for credit cards will reduce their ubiquity and do nothing to reduce inflation

One of the ways the Biden administration and the Democratic Congress tried to deflect opprobrium for last year’s spike in inflation was to blame middlemen. Last week, Senator Durbin reported that he was considering introducing legislation that would require credit cards to be activated with at least two unaffiliated networks, which would require replacing every credit card currently in circulation with a new, more expensive card for consumers. However, blaming credit cards for the high prices is little more than an exercise in political distraction: the new routing mandates will do nothing to help small merchants and would likely reduce the ability of poorer Americans to get money. credit card. [Forbes]

Instacart and Mastercard team up for a new cash back credit card

With the all-new Instacart Mastercard, Chase and Instacart are teaming up to bring groceries and cash back rewards right to your front door. It’s the first credit card from Instacart, a grocery delivery service that lets you order from your favorite local chains or stores without leaving home. When shopping through Instacart’s website or mobile app, cardholders will earn 5% cash back on products from over 40,000 stores without worrying about the spending limits found on the cards. competing grocery stores. [USA Today]

Banks call on CFPB to crack down on data aggregators

Eight banking trade groups have asked the Consumer Financial Protection Bureau to define data aggregators as larger participants subject to regulatory oversight. In a 10-page letter sent Tuesday to CFPB Director Rohit Chopra, banking trade groups asked the bureau to issue a broader rule of participation before implementing separate regulations on consumer access to financial data. Professional groups have also asked the CFPB to define the services of data aggregators as a financial product or service. Trade groups say the explosive growth of data aggregation services has created more risks for consumers, especially for data privacy and security, which could lead to uneven enforcement. [American Banker]

Splitit partners with letus to bring installment billing to the rental market

Buy now, pay later Splitit is partnering with letus, a cloud-based payment platform for the rental market, through an installment-as-a-service integration. The collaboration allows tenants to spread expenses such as rent or security deposits over multiple monthly payments to the credit card of their choice without additional interest charges Splitit offers a white-label installment solution that provides integration of application programming interface, which allows letus to provide a brand experience integrated into the platform. [PYMNTS]

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