Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Hampel to AP Credit cards less responsive to market
WASHINGTON (12/19/08)--The Federal Reserve cut interest rates this week, but credit card companies may not necessarily do the same, because they are not as responsive to the market, a Credit Union National Association (CUNA) economist told The Associated Press Wednesday. Because more is left to the issuer’s discretion, credit card rates usually are less responsive to changes in market interest rates than rates for home mortgages and auto loans, Bill Hampel, CUNA chief economist, told the news agency. One reason is “floor” rates--pre-determined points below which issuers won’t let the interest rate drop, regardless of how low the prime rate falls--which are usually embedded in the fine print of card agreements, the news agency noted. If a card’s rate is based on prime plus 5%--for example--with a designated floor of 10%, the card’s rate would not drop below 10%, even if the prime rate fell below 5%, the news agency said.
Other Resources

RSS





print
News Now LiveWire
Matz: Revised @TheNCUA #RBC rule for #creditunions 2 B unveiled 1/15/15, 90-day comment period to follow #newsnow http://t.co/qABhvghSTU
1 Day ago
Just announced: @TheNCUA board will consider a revised risk-based capital rule at its Jan 15 mtg. See #NewsNow Monday for more info.
1 Day ago
Nearing one-yr anniversary of data breach, @Target asks for class action suits to be dismissed via @BloombergNews http://t.co/kra6kupd35
1 Day ago
.@PeoplesTrustFCU has been recognized with the Juntos Avanzamos designation by @Cornerstone_CUL for its service to the Hispanic community
1 Day ago
#NewsNow: Rep. Hensarling names #HFSC subcommittee chairs. http://t.co/dXAMZdpn1p
1 Day ago