Essay on credit card ethics

5. In the Citibank example, how did Citi use existing laws to alter its business mode?

Go to www.annualcreditreport.com, a site authorized by the Federal Trade Commission to provide free consumer credit reports.

There is a guy that is going down the sidewalk thinking wat to do with his payment of his car but he also needs money to pay his rent of his apartment ,he falls back with his payment and he doesn’t get paid enough to pay back the payments that he needs. People are in depth with loans because they can’t pay them back in time witch how much they borrow there is a percentage that they add on your due date but when it passes they would charge you more than you actually payed. Payday loans are very useful to pay a car, house or rent, but hard to pay back and they shouldn’t have payday loans because they are hard to pay back, people are desperate for money, and payday lenders are taking money out of your pocket to pay them back.

JPMorgan Chase (NYSE: JPM) is one of the oldest financial institutions in the United States with a history dating back over 200 years. JPMorgan and Chase is basically included Chase- the U.S. consumer and commercial banking businesses serve customers under the Chase brand. The consumer businesses include: Branch, ATM, telephone and online banking, Credit cards, Small business, Home finance and home equity loans, Auto finance, Education finance, Retirement & Investing, Retail Checking. The commercial banking businesses include: Middle Market, Corporate Client Banking,

According to the plaintiff in the Coleman v. Kohl’s Department Stores, Inc., et al., Case No. 15-cv-2588 (N.D. Calf.). In June of 2015 Kohl’s Department Stores Inc. allegedly used ambiguous and misleading language to obtain credit reports from job applicants in violation of the Fair Credit Reporting Act (FCRA). As a result of the confusing and misleading application materials, plaintiff alleges that Kohl’s obtained a credit report and claims that Kohl’s willfully violated a recent warning by the (FTC) Federal Trade Commission to display background check disclosures to job applicants in plain language and on a separate document.

The intriguing thing about the TJX escapade is that TJX lost the Visa information of 96 million buyers (around 29 million MasterCard casualties and 65 million Visa casualties). The expense, all things considered, had to be taken care of by the guarantors of the charge cards. From a business point of view, the scandal shows up not to have unfavorably influenced TJX. It may matter to clients who turned into the casualties of character extortion and the banks who need to cover the false utilization of charge card numbers, yet it has not influenced TJX. Since TJX lost claims by banks, it seems to have affirmed the of held (but deceptive) conviction that defensive measures are unimportant, and that the insignificant sum ought to be spent on them.

For the threat of new entrants, the financial market in United States is fiercely competitive. The threat of new entrants is not serious for some companies that have been famous for a long time. Capita One continued to seek technological innovation and adopt the diversification strategy, they stick to running business including credit cards, auto loans, family loans, savings, personal credit, insurance and so on. According to the data on MBAlib website, by the end of 2017, the credit card loan balance of Capital One was 97 billion 100 million dollars, which is the third place in the U.S credit card market. The companies in the first and second is 141 billion 800 million of Morgan and 133 billion 300 million of Citigroup. The revenue of credit card accounts for 62.8% of the total revenue.

In fact, the organization called for dismissal of the lawsuit due to a lack of evidence. In particular, CHS responded that their contracts with insurers prohibiting the insurers from steering competition, did not prove price hikes or premium prices. They also felt like their business practices did not directly affect other local healthcare organizations (Garloch, 2016). Looking from the outside in, their business practices absolutely affected other local organizations due to consumers not being given the option or opportunity to pursue competitors. Being that the insurers were under contract which outlined their pact to avoid steering consumers to competitors, the business practices of CHS most definitely affected competing healthcare

Last year, DU informed the RM they were going to move the card business to another bank, along with their affinity card program. Discover had provided the affinity card for many years, and made a decision to exit the program. As the affinity card is a essential component of the DU member program, they had to seek alternatives. Bank of America did not have a current offering in MM. The First National Bank of Omaha (FNBO) offered DU an affinity program, and asked for their commercial card program. DU made the decision to bundle the affinity card and commercial card based on the FNBO offer . DU apologized for moving business from us, as they stressed their appreciation for our dedication to them. Although, DU agreed to exploring additional

In September of 2016, it was revealed that there was alleged misconduct at one of the largest and safest banking institutions in the United States. Wells Fargo Bank was ranked among the nation’s safest financial institutions according to an analysis done by Global Financial, (Inside Tucson Business, 2009). Alleging that between May 2011 and July 2015, there were more than 2 million bank accounts or credit cards opened for customers without their knowledge or permission (Blake, 2016). Clients started complaining the they were receiving debit/credit cards from the bank that they had not ordered. Wells Fargo employees also started complaining that about the unethical behaviors they witnessed or were asked to participate in to the Human Resource Departments, the bank’s internal ethics hotline, branch’s individual managers and supervisors. All which led to the discovery of the fraud scandal.

Money is a necessity in life and is a constant worry for college students especially when you take out a $10,000 loan. Financial aid has replaced studying as the biggest worry for college students. The objective of college is to learn and grow as a person, but is limited by financial capabilities which is a big problem for the U.S. education system and prices continue to go up. Main focus is having to focus on rigorous studying, students may also have to work to stay in school. A student is paying college through a $10,000 loan and working a part time job 20 hours a week. John wonders if getting a credit card will help him financially. The best solution is to attain a credit card that has student benefits included and will make it easier to protect and keep track of your money.

Whilst a critical part of consumer spending, credit card companies are constantly accused of malicious legal contracts and schemes to increase profits. Without heavy regulation, these companies have the power to bankrupt millions of Americans that rely on credit cards in their daily lives. However, after the introduction of The Credit Card Act of 2009, these accusations represent an inability to accept responsibility for financial blunders on the consumer’s behalf. Due largely in part to the government’s strict regulations, credit card companies should not be at fault for the student credit card debt crisis. Credit card companies remain blameless for student credit card debt as a result of

All the consumers affected were also made vulnerable to subsequent identity theft given malicious attackers stole their personal data. Equifax was directly affected since its stock began to plunge immediately the news was made public. Additionally, the corporate governance of the company was tarnished given three Equifax executives sold shares worth around $2 million days after the breach discovery, and the “retiring” of the chief security information officers is questionable (Surane & Melin, 2017). Also, the company was exposed to litigations with some lobbyists and interest groups pushing regulators to hold Equifax accountable for the negligence and poor treatment of affected consumers. The proposed new data security laws will present a greater burden to other corporations. Two such laws are the Promoting Responsible Oversight of Transactions and Examinations of Credit Technology (PROTECT), and Freedom From Equifax Exploitation (FREE) will attract more government scrutiny and limit the type of personal data that companies can collect from customers (Alperan, Carter, & Sofio, 2017).

Visa Inc. (VN) operates the world’s largest retail electronic payments network and manages the world’s most recognized global financial services brand. Visa has more branded credit and debit cards in circulation, more transactions and greater total volume than any of their competitors. They facilitate global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses and government entities. They provide financial institutions, their primary customers, with product platforms encompassing consumer credit, debit, prepaid and commercial payments. Visa Net, their secure, centralized, global processing platform, enables them to provide financial institutions and

Students do not have the education needed to use credit cards responsibly. Nellie Mae (August 2007) states