Credit Card Data Lost

Protecting our private information sounds like a good campaign issue to me. To date...silence.

Personal information on about 650,000 customers of J.C. Penney and up to 100 other retailers could be compromised after a computer tape went missing. GE Money, which handles credit card operations for Penney and many other retailers, said Thursday night that the missing information includes Social Security numbers for about 150,000 people.

The information was on a backup computer tape that was discovered missing last October. It was being stored at a warehouse run by Iron Mountain Inc., a data storage company, and was never checked out but can't be found either, said Richard C. Jones, a spokesman for GE Money, part of General Electric Capital Corp.

Jones said there was "no indication of theft or anything of that sort," and no evidence of fraudulent activity on the accounts involved.

Iron Mountain spokesman Dan O'Neill said it would take specialized skills for someone to glean the personal data from the tape. He said the company regretted losing the tape, "but because of the volume of information we handle and the fact people are involved, we have occasionally made mistakes."

Penney said it had been told of the situation and referred further inquiries to GE Money.

Jones declined to identify the other retailers whose customers' information is missing but said "it includes many of the large retail organizations."

Unpaid Credit Cards- An Ominous Sign

This issue, in my opinion, will be a huge story in the upcoming year.

Americans are falling behind on their credit card payments at an alarming rate, sending delinquencies and defaults surging by double-digit percentages in the last year and prompting warnings of worse to come.

An Associated Press analysis of financial data from the country's largest card issuers also found that the greatest rise was among accounts more than 90 days in arrears.

Experts say these signs of the deterioration of finances of many households are partly a byproduct of the subprime mortgage crisis and could spell more trouble ahead for an already sputtering economy.

"Debt eventually leaks into other areas, whether it starts with the mortgage and goes to the credit card or vice versa," said Cliff Tan, a visiting scholar at Stanford University and an expert on credit risk. "We're starting to see leaks now."

The value of credit card accounts at least 30 days late jumped 26 percent to $17.3 billion in October from a year earlier at 17 large credit card trusts examined by the AP. That represented more than 4 percent of the total outstanding principal balances owed to the trusts on credit cards that were issued by banks such as Bank of America and Capital One and for retailers like Home Depot and Wal-Mart.

At the same time, defaults — when lenders essentially give up hope of ever being repaid and write off the debt — rose 18 percent to almost $961 million in October, according to filings made by the trusts with the Securities and Exchange Commission.

Credit Card Labyrinth

Reading an AP article entitled "Fed wants to clear credit card confusion" I was certainly interested as I am one of those unfortunate souls held hostage by these damn pieces of plastic. Deluged by complaints from consumers, both the Federal Reserve and Congress are proposing changes in the ways consumers are notified about changes in their accounts and the various interest rates for different types of transactions.

The article is worth a read. I know first hand the devestating effects that credit card companies can wreck on ones' life. If I can ever get out from under the thumb of these companies, I will personally become an advocate against their use. If you are one of those fortunate ones that do not have one of these cards, PLEASE, PLEASE throw those damn offers away or go straight to the shredder and get rid of them.

It is way past time to reign in these companies and their ridiculous interest rates, fee structures and penalty payments. It's simply the latter-day version of the infamous loan shark. The dark trenchcoat and scary alleyway have transformed into cute plastic cards that you can personalize in really groovy colors. Get to work Congress- Get to work Feds- It's time to stop letting these companies rip off consumers while lining their pockets with handsome profits.

So You Say You Are A Cyberbeggar?

You may wonder--how can someone who is a cyberbeggar possibly have a blog that deals with economic issues of any sort? Well, let me tell you. I was at the top of my game a couple of years ago. I did all the things you are 'supposed' to do- graduated from college, worked hard, got a great job in the health care field and bought a house all by the time I was in my early 30's. Kept my economic house in order, paid all of my bills on time and in general was the model 'Tax Paying Citizen'. What happened? Well, foolishly I thought the idea of owning my own business was a great thing to do. You know the lines--work hard, sacrifice and you can create your own future. Blah. Blah. Blah. Long story short. I sold the house and invested the money (and some) to start my own little restaurant. The problem was the 'and some' as this was financed with credit cards. No problem I told myself- the profits will be used exclusively to pay these off and then go on. One thing I didn't plan on in this great global economy of ours was that with the decline in disposable income, businesses such as mine have been affected. With decreased projections, this credit card 'financing scheme' has not turned out to be one of my own best decisions. The business does well (although I had higher expectations of the market) but these damn credit cards and high interest rates eat a significant portion of my revenues. I know some will say that I was crazy to try this scheme at all. Fine- we all make mistakes (mine was great, I agree) but I want to talk here about the underlying issues that we have today in the domestic and world economies and the political decisions being made that are important to all of us. No I'm not an economist but I do know what does and does not impact my financial life.

Credit Party a Go-Go!

We've all heard stories of the housing bubble and the potential consequences that it could have on the general economy but have you read about the credit bubble? I came across a great post the other day that dealt with this issue. According to the author of this piece, many financial institutions have been making loans to risky companies for quite some time now and what could happen if these deals turn bad. It's a great read and I highly recommend it.

Credit Card Debt

Credit Card Debt- these very words strike fear into the hearts of the many people that have it. I know because I do (alot to be honest) and let me tell you, the subject fills much of my waking day. The credit card industry makes big bucks off of such things as high interest rates and various 'fees'. To get an idea of just how much money is being made, take a look at the recent quarterly earnings of MasterCard. Profits rose an astounding 70%! It's sad but true that more and more people have taken on exterme amounts of credit card debt just to get by. Add to this the inability of many people to pay these cards off due to job loss, foreclosure, stringent loan requirements, etc. Have a credit card story?