Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

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
Record # of applicants for Crash the GAC means every state & D.C. will B represented by young #CU professional at #CUNAGAC #crashthegac15
2 hours ago
.@WOCCU and @CUNA are co-hosting 2015 America’s CU Conference July 12-15 in Denver. Registration is open here: http://t.co/FanFeaO0bC
2 hours ago
Recording of @CUNA Jan. 26 #rbc2 webinar is now available online here: http://t.co/jgxkd65Fj0 Just sign in and listen.
2 hours ago
.@SEC_News 2/19 proxy voting roundtable: contested director elections, increasing retail shareholder participation http://t.co/8k0p6ZvNL8
3 hours ago
.@TheNCUA posted resources 2 help consumers protect themselves,take action if they believe they were ID theft victims:http://t.co/HVaikbuT9H
4 hours ago