Quote of the Month:
"ComScore.Net reported that Internet shoppers spent $151 million on the Friday after Thanksgiving...up 40% from the same day last year."
| Forecasts & Statistics |
| Product Trends |
| Industry Trends |
| Issue Archive |
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| Bankruptcies Set Another Record in Third Quarter |
| Personal bankruptcy filings in the U.S. set new records during the third quarter of this year. Statistics just released from the Administrative Office of the U.S. Courts indicate that more bankruptcies were filed during the 12-month period ending September 30, 2002 (1,508,578) than during any previous 12-month period. |
| The Current Economic Picture |
| All indications are that the economy is growing, but modestly. Here is a roundup of some recent numbers... |
| Auto Leasing Plunged in 2001 |
| The Association of Consumer Vehicle Lessors (ACVL) has released the results of its member survey of auto leasing activity for 2001.... Participants reported a total reduction in leasing volume from 2.57 million units in 2000 to 1.55 million in 2001, a decline of 40%. |
| Reaching 18 to 30-Year Olds |
| If you wish to sell your financial services to young men and women, where would you advertise? American Demographics reports findings from a recent survey by Harris Interactive of 18 to 30-year olds, both those in college and not in college. |
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| Growth of Debit Cards |
| Data provided by CardFacts show that the dollar volume of debit card transactions grew from $110.5 billion in 1997 to $420.7 billion in 2001—an increase of 381 percent. |
| Visa to Offer Rewards on its Debit Cards |
| In an article in the Wall Street Journal, Ron Lieber describes a new rewards program to be offered by Visa to its debit cardholders. Beginning next spring, consumers who sign for their Visa debit card purchases will be automatically entered in a reward program that provides free theatre tickets. |
| Refinancing Hits Bond Funds |
| The decline in interest rates on home mortgages has helped homeowners, but not consumers who own shares of mutual bond funds that have invested in securities that are backed by pools of residential mortgages..... Homeowners are paying back the principal on their existing mortgages many years earlier than the mutual funds holding the mortgages had expected. |
| E-Commerce Update |
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| HSBC Acquires Household |
| In a surprising move, HSBC PLC, the world's second largest banking company has acquired Household International for $16.15 billion. In large part the acquisition seems to be designed to achieve a better balance in its worldwide portfolio of financial institutions. |
| Click or Lick? |
| In an article under the above title, American Demographics reports the findings of a study by the New York-based research firm, Ipsos-Reid. The research explored the extent to which consumers adopt modern technology offered to consumers by the banks, or whether they prefer to conduct their business in person, by mail or on the telephone. |
| Identity Theft in the Mortgage Industry |
| The American Collectors Association reports a rising problem of identity theft in the mortgage industry. According to Bruce Morris, senior vice president of risk management at Saxon Mortgage Inc. Glen Allen, VA, the problem is growing, but data are not available to provide a nationwide figure. |
| Sears' Credit Card Problems |
| For many years, Sears Roebuck has been an icon of American retailing, and a leader in providing credit to customers so that they can generate those sales. According to one report, credit cards have provided 60 percent of Sears' earnings. In her excellent article in the New York Times, Constance L. Hayes has provided data comparing Sears with two other major retailers, Target and Kohl's. |
| Rental Payments May Appear on Credit Reports |
| The largest monthly expenditure for about 40% of U.S. households never appears on their credit reports. An Annapolis, MD consulting company wants to change that, thereby giving renters an additional avenue for building a good credit history. |
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| Bankruptcy Bill Aborted |
| How many of our avid readers anticipated a year ago that the bankruptcy reform bill would founder on the abortion issue? ... According to Philip Shenon's article in the Wall Street Journal, the failure of the bankruptcy bill to pass the House "was an embarrassing miscalculation by newly installed House Republican leadership of the influence of anti-abortion within the party." |
| More Evidence Regarding the Impact of Predatory Lending Laws |
| Two recent academic studies have examined the impact of North Carolina's anti-predatory lending law. Both found a substantial decline in subprime mortgage lending following passage of the law. |