What Stands Behind Capital One Credit Cards and Savings Products?

In the times since the global financial crisis, it has increasingly become a concern as to what the backing of the financial institution that issues your credit card or holds your saving account is. There are a number of laws which regulate the financial system and try to ensure that customers can rely on banks to honour their obligations which can be a particular concern in relation to savings products. Title 12 of the United States Code in part 325 specifies a number of ‘capital adequacy requirements’ in relation to all banks. The aim of these requirements is to force banks to adequately provision of a crisis and ensure that they will remain solvent even if there is a large crisis. Banks must report periodically on their arrangements to show regulators that they are meeting the capital adequacy requirements.

Capital One at the moment is, when measured by asset pool, the 8th largest bank in the United States with balance sheet assets of approximately USD$286bn in 2012. Amongst other distinctions, the company is also one of the largest customers of the United States postal service. Its head office is in Fairfax County Virginia and the current chairman, CEO and President of the company is Richard Fairbank. It is one of the fastest growing banks in American history having been founded in 1988 by the current CEO. Like many banks in the American financial system, Capital One was the recipient of a bail out during the sub prime mortgage crisis of 2007 when it received $3.56bn from the United States Government in exchange for 3,555,199 shares in the company. By the end of 2009, the company had managed to buy the government out of the business.

As well as being involved in credit cards, Capital One has an Auto Finance Division which is a substantial part of the company. An entity known as Capital One 360 is also now in existence having formerly been known as ING Direct on the idea that a bank could perform retail services entirely on the basis of an online model. This division of the company has no branches and only maintains a physical presence in the form of call centres and online processing maintenance facilities. The online bank model seems to achieved some success given that the lower overheads from rent and staff result in lower costs to consumers and therefore a better outcome.

One of the notable characteristic of Capital One is that it appears to have retained an ability to ride out the periodic financial storms which emerge in the world of consumer credit. It has grown consistently throughout good and bad times in consumer finance and continues to grow based on the analysis of its most recent financial data. This history of growth and the ability to ride out financial storms appears to bode well for the credit and savings products of Capital One.

Airline Rewards Credit Cards From Chase

The British Airways Visa Signature Card is one of the best options in credit cards for consumers who love to fly in the care of British Airways. Issued by Chase.

Cardholders earn one mile for every dollar spent on general purchases such as gas and groceries and two miles for every dollar spent through British Airways. As a reward for signing up, cardholders will receive 15,000 bonus miles with their first purchase of any amount. After that cardholders earn 2 British Airway miles for every dollar they spend on British Airway purchases and 1 mile for every dollar they spend on other purchases.Unlike rewards programs for other credit cards, there is no yearly limit to the number of miles that can be earned, and miles do not expire as long as the frequent flyer account is active during a three-year period.

Aside from the reward program, a variety of benefits are available including travel accident insurance, auto rental insurance, and lost luggage insurance. You will also get personal concierge service without a pre-set spending limit. Additionally, with the purchase of a FIRST, Club World, or World Traveler Plus round-trip transatlantic ticket at regular price, British Airways will give you a companion ticket absolutely free.

There is a low introductory offer that applies to purchases and balance transfers for the first five months. The interest rate for purchases and balance transfers is above average for a reward card (once the introductory rate expires), and it is not ideal for those who plan to carry a revolving balance due to the finance charges that may apply.

The annual percentage rate for this Visa Signature Card increases to 17.24 percent after the introductory period. The annual fee is a low $75 per annum.


Be Prepared for the Problems in Used Car Financing With Solutions Before You Start

Financing properly is more important in financing a used car than when buying a new car. Most problems that occur in buying a used car are due to there being a problem connected with the financing. Getting the used car financing worked out properly is the key to a successful used car purchase.

Most buyers aren’t aware of how important the paper work is to making the deal a successful one or a failure. They view it as paperwork that should be completed as quickly as possible so they can drive away in their new car.

To start with, it’s very important to get the deal agreed upon by the salesman to be put in writing in the contract. This often involves determining monthly auto loan payments based on an interest rate. Sometimes, the interest rate a customer qualifies for is inflated so the dealership can make extra profit.

This headache can easily be avoided by obtaining independent vehicle financing before going to the dealership. This means the consumer can proceed as a “cash buyer” and negotiate only the price of the car. Car salesmen prefer customers to be “monthly payment” buyers because, in this way, it is easier to obscure the total cost of the vehicle.

Independent car financing can be obtained from a bank, credit union or on-line lender. With the popularity of the internet, applying for used car refinance is proving to be simple and very easy to do. Many on line lenders respond very quickly – sometimes as short as 15 minutes by email or telephone. If the application is approved, the borrower is given a credit limit at an established interest rate. Sometimes a blank bank check is issued with no obligation to use it.

“For the majority of consumers, even if you know you have good credit, there is a little apprehension and tension around applying,” one lender said. “So instead of going into a dealership and giving them your information and being sent to the coffee machine to wait for an answer, you can apply on-line, 24/7.”

Most people familiar with how used car dealerships operate confirm that obtaining independent car financing is beneficial to most consumers. .

The most common problems that have a negative impact on a person trying to finance a used car –and their solutions – to ensure that things go smoothly are the following:

Problem #1: Many consumers don’t know what their credit rating is when they apply for an auto loan. The strength of their credit score largely determines what kind of interest rate they will receive. Therefore, it’s critical to make sure your credit report is in the best shape possible before shopping for a car.

SOLUTION: Order a copy of your credit report and look for items that may stand in the way of you getting a good rate. Correct any issues or errors promptly. Are all of your lines of credit in good standing? Are there any signs of identity theft? The credit bureaus will tell you how to correct errors when they send you the report. The following numbers and Web site addresses will assist you in checking your credit.

How to Successfully Capitalize on Special Finance Leads?

In a highly competitive market, it is very difficult to generate quality special finance lead by the dealers. The process results in unnecessary wastage of time, energy, and money. In spite of spending a lump sum amount on advertisement and on running PPC campaigns in Google, still a dealer fails to produce the desired number of leads to meet the monthly target. Dealers who cannot generate their own leads depend on the professional lead providers to supplement the flow of new sale opportunities.

All providers produce new sale opportunities through their own marketing efforts. They usually have a couple of websites for an effective auto lead generation. Through advanced adverts offline and online and use of social media, the highest quality of leads are generated in real time. Pay-Per-Click (PPC) campaigns are used extensively to generate as many leads as possible.

When sending the leads to the dealer client, the professional lead generators ensure they are sending only the best quality leads. A team of efficient professionals works to separate the good quality leads from the bad ones. Usually a provider uses a lead tracking software to track the number of leads coming from different sources from websites, landing pages, blogs, advertisements, etc.

Bad quality leads are generated when so-called potential car buyers don’t respond to calls being made from the lead generating company’s office or for that matter don’t reply to the emails sent at least 48 hours ago. Such sets of people are termed as ineffective leads and the list containing the personal details of such individuals are not sent to the dealer. Effective leads are those that respond instantly to a call or an email and show a genuine interest to buy a car.

There is a misconception amongst many dealers that the providers send a lead’s personal details to multiple dealers. The lead generating companies have teams that check whether the same leads are being sent to more than one dealership or not. Cross checking of leads received should also be done on the dealer’s part to reject duplicate leads.

The reason for the huge popularity of the external lead generators lie in the fact that they guarantee the generation of maximum high quality leads. Once people fill up an online inquiry form to learn more about a dealer and the auto loan application and approval procedure, the generator instantly starts following up with those people. Through regular communication and responding to the queries of potential car buyers, special finance lead can be generated successfully.

Experienced service providers spend all their time in doing quality research on the type of target audience a dealer wants to have. The providers will use the latest, innovative marketing strategies to create a long lasting impression in the minds of the people. One of the best chances to increase visibility is to have a strong presence in various social media web platforms for maximum auto lead generation. Through maintenance of social media accounts and regular posting of interesting articles, relevant news, photos, and videos on Facebook, Twitter, LinkedIn, Google+, and so on grabbing the attention of potential car buyers can be increased to a large extent.

Matthew S Barredo is an expert researcher of special finance lead. He has over 7 years of experience in the genre of finance auto lead and the same. In this article, he has tried to educate the readers about choosing an ideal car lead generating company and auto lead generation for steady sales and profit.

Obama Debt Forgiveness – New Laws Could Save Consumers 50% to 60% on Current Debt Balances

Debt collectors usually experience great business when people are having a difficult time paying their bills, since they rely on making making through the never ending ring of the telephone. However, in the recession we are now in, one that could be the worst in decades, the unimaginable is going on: people that usually go after the money are now losing some themselves.

After credit card companies have aided in making the tremendous consumer debt what it is today, they are now coming to understand that many Americans are having an extremely difficult time paying their bills when due, while the economy gets worse.

This has made lenders and the collectors they employ frantic to get every cent they can, before the situation becomes even worse, and they will do this even if it means they have to lose money themselves. More and more, they are allowing payments to be stretched to unimaginable lengths, and they are taking dimes, or even pennies on the dollar, and considering it paid off.

These predatory lenders are not just being helpful. All they are really doing, is attempting to cover their own behinds. Credit card companies and banks are getting prepared for a huge amount of defaults on credit cards, and they are fighting with each other to get their money first. They also consider the fact that the faster people can get their debts paid off, the sooner they will be able to begin borrowing money again.

Although many banks are cutting credit lines, hiking up card fees, and just wary on lending in general, others are actually allowing their customers a little room to move. For example, Bank of America has said that they have waived late fees, dramatically lowered interest rate charges, and for some, they have even reduced loan balances for greater than 700,000 people that held their credit cards in 2008.

Since a greater number of people are getting more in debt, cards like Chase and American Express are doing the same thing for many of their customers. All of the major credit card lenders are telling their collection agents to allow for greater leeway in helping customers that are in dire straits.

People who usually make their money based on the total amount of money they recover, have said people that have had problems and have had to obtain payment extensions, have at least doubled over the past few months. There have also been situations where people who borrowed money, and were about to go over the edge, were given deals that allowed them to pay only 30 to 80% of the money they owed.

This situation is the opposite from a few years ago, when most of the time, consumers fought and lost against credit card companies. In the current situation, as debts continue to soar into the stratosphere, the lenders are the ones that are crying uncle.

$395 billion in bad loans, are what credit card lenders expect to have to write off in the proceeding five years, as reported by the Nilson Report, which is an industry newsletter. This is comparable to the approximate $275 billion that has accrued over the past five years in credit card debt. It is getting more difficult to collect debts such as these. Many times if this happened in the past, lots of consumers would use their home’s equity to have a way to pay off credit card loans, or they may have used retirement money, used a debt consolidation loan, or simply asked a friend or family member for help. With the state of the economy being what it is today, consumer have no recourse.

Since they are terrified that people that pay their bills on time may stop, the lenders do not want to say that they are accepting less than the total payment due. Whereas the gigantic loan modification programs that are going on, take thousands of mortgages at the same time, the way credit card customers are being helped is still on a case by case scenario.

Now, lots of debt collectors are letting many borrowers that are behind, take a year to pay off their debts, instead of the standard six months. There are also many lenders that are getting in touch with borrowers as soon as possible, so they do not have to write off the account. Even others are talking to customers they fear might soon get behind in their payments. Much like when credit card companies were trying to be the very first card people used, they are now in the situation where they are attempting to get paid before any others.

The banking industry is now beginning to lobby regulators, so that it is more beneficial to lenders to extend payment terms or forgive indebtedness, since it is projected that millions of additional consumers will be defaulting on their credit cards in the next few months. There was a credit card loan modification recently that was not accepted.

Through this rejected plan, lenders would have been able to forgive around 40% of the total owed them by borrowers over the next five years. The accounting rules that are in place now, say that lenders have to report the loss right after default, but the new plan would have let lenders wait until the part of the debt had been repaid to report it. By doing this, they would be able to write off less later down the road. Borrower would have also been able to defer any tax payments that were owed on the debt that had been forgiven.

In 2005, major changes passed to bankruptcy legislation, and the industry ferociously lobbied, and this seemed to have harmed card debt collections. The mean debt that was discharged in Chapter 7 bankruptcy has grown three times the amount since 2004, according to credit card industry data. In a Chapter 13 bankruptcy, secured lenders such as auto finance companies often shove out lenders that are not secured, like credit card companies, and this has went on and assisted in the card lender’s willingness to settle.

Although settling on a deal will avoid credit card cancellation or possible bankruptcy, it will also make the borrower’s credit score dip very low for as many as seven years, and this will make it extremely hard and costly to get any new loans. This will make the person’s average credit score drop 70 to 130 points, where the strongest borrower have one of 700 or greater.

Through the use of credit card debt settlement companies, debts can be combined into one single payment, and make credit card companies decrease the interest payments and other fees, and also many times the actual principal will be reduced as well. By doing this, the credit card holder can then take off as much 60% off the amount that they owe in debt.