Finance Globe

A money transfer company that allowed fraudulent telemarketers to rip off thousands of consumers has settled Federal Trade Commission (FTC) charges and has been ordered to pay $18 million in consumer redress. According to FTC charges, MoneyGram International, Inc., the second-largest money transfer company in the U.S., knew that their service was being utilized to defraud consumers and did very little to stop it, and in some cases, its agents in Canada even participated in these...

Retail sales in September declined by 1.5%, mostly due to the steep 10.4% drop in motor vehicle sales after the expiration of the Cash for Clunkers program, the Census Berueau reported today. Analysts had expected a decline of 2.1% in total sales for September.“Retail sales in the third quarter saw its strongest gain in almost two years, due to the successful ‘Cash for Clunkers’ program,” U.S. Commerce Secretary Gary Locke said. “The healthy increase in sales...

The credit card law that goes into effect in February, the CARD Act, will make it very difficult for many adults under the age of 21 to obtain a credit card without a parent co-signer or proof of their own income, the American Bankers Association (ABA) said in a statement on Tuesday.“The new credit restrictions will only be effective if education bridges the gap. Otherwise, first-time credit users will be older, but not necessarily wiser,” explains...

The American Bankers Association testified on Friday on the impact of the recession on lending to small businesses.Testifying on behalf of ABA before the Senate Banking Committee, community banker Stephen Wilson, Chairman and CEO of LCNB National Bank in Lebanon, Ohio, said that this is not the first recession faced by the banking industry, and that despite the current challenges banks are working hard to ensure that the credit needs of their communities are met.Wilson said...

The Treasury Department reported on Thursday that under the Making Home Affordable program, more than 500,000 trial loan modifications are in progress.Earlier this year in July, the Treasury and the U.S. Department of Housing and Urban Devolopment (HUD) set the 500,000 benchmark for November 1. This goal pushed servicers to ramp up program implementation and sustain a faster pace of modifications; trial modifications are now being issued at a faster rate than new homeowners are becoming...

The Federal Trade Commission (FTC) and Federal Communications Commission (FCC) issued a joint statement today encouraging consumers to protect their privacy when online.FCC Chairman Julius Genachowski said, “The American public increasingly relies on the Internet to create, exchange and receive information, news, education, and entertainment and it is critical that all consumers take precautions to protect their privacy and ensure their well-being online. Consumers should stay alert, recognize the potential risks associated with cyber crimes and...

Merchants and credit card issuers battled it out on Thursday as they testified to Congress on interchange fees. H.R. 2382, the Credit Card Interchange Fees Act of 2009, is a bill to amend the Truth in Lending Act, introduced in May by Representatives Peter Welch (D-VT) and Bill Shuster (R-Pa). The American Bankers Association (ABA) in a statement submitted to the House Financial Services Committee urged Members of Congress to oppose H.R. 2382, saying that the...

The number of people filing for unemployment benefits for the first time decreased last week from the previous week, according to a report released today by the Labor Department.In the week ending October 3, the advance figure for seasonally-adjusted initial claims was 521,000, down 33,000 from the previous week's revised figure of 554,000. Economists had expected a decrease in initial claims of 11,000. The four-week moving average, which smooths out fluctuations, was 539,750 - a decrease...

The job outlook remains poor as employment continued to decline for the month of September, according to a report released by the U.S. Labor Department on Friday. The largest losses were in construction, manufacturing, retail trade, and government positions.Non-farm payroll employment decreased by 263,000 last month and the unemployment rate was 9.8%. Since the start of the recession in December 2007, the unemployment rate has doubled as the number of unemployed persons reaches 15.1 million -...

Pending home sales have increased for seven straight months, the longest in the series of the index which began in 2001, according to a report released on Thursday by the National Association of Realtors.The pending home sales index - a forward-looking indicator based on contracts signed in August - rose 6.4% to 103.8 from a reading of 97.6 in July. The index is 12.4% above its level in August 2008 when it was 92.4, and is...