Credit card losses soar Debt Climbs Faster Than Income

Leo (July 23 — Aug. 22)

You are restless, agitated and unable to relax about a problematic scenario as it is. It is also probably true that you are unable to change it for the better. Try not to do too much or to go too far. Let nature have its way.

Gemini (May 21 — June 21)

Your attempts to fix a situation are not yielding encouraging results. Don't lose hope. Your arduous efforts will, in time, be rewarded. Give it your best shot. It will prove more than good enough.

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TheStar.com - Business - Credit card losses soar

TORONTO STAR GRAPHIC

Could climb by as much as $800 million this year

February 04, 2009

Dana Flavelle
Rita Trichur
Business Reporters

Amid fresh evidence cash-strapped Canadian consumers are taking longer to pay off their credit cards, another major financial institution has moved to tighten up its lending practices.

Amex Bank of Canada said in a note to cardholders recently that the rates of interest on some American Express cards will rise between 1 and 3 percentage points to as much as 21.99 per cent, effective Feb. 11.

The move comes as a new report projects credit card losses in Canada could climb by as much as $800 million this year if present trends continue.

"Canada's not really immune from the issues we've seen south of the border," said Pat Daley, a partner with Deloitte & Touche. "We're starting to see some indicators from a debt load point of view that credit card debt is becoming more of a problem for the issuers."

Canadians' debt-to-disposable income ratio, now at 130 per cent, exceeds U.S levels, Daley noted, quoting figures published earlier by the Bank of Canada.

As well, Canadians' love of credit cards means the value of all outstanding balances has climbed 40 per cent since 2004, Daley also said.

Meanwhile, a slowing economy and rising job losses mean more consumers are taking longer to pay off their debt, raising the risk of defaults to lenders, she said.

TORONTO STAR GRAPHIC

Based on interviews with executives representing more than half the outstanding credit card balances in Canada in December, Deloitte & Touche concluded write-offs were rising by as much as 1 per cent, or $800 million on an annualized basis.

"As recently as October-November they had started to see a change in behaviour in the way Canadians were paying off credit card debt. We found an increase in delinquencies. That's when a customer misses a payment after a certain point of time. And delinquencies can turn into write-offs," Daley said.

Delinquencies were up between 5 per cent and 10 per cent last fall, which translates into a 0.5-1 per cent higher write-off rate, she said.

Based on the $80 billion in outstanding balances in Canada a year ago at all financial institutions, not just the federally regulated banks, according to Nilson Report data, that translates into an $800 million increase in write-offs annually for the whole industry, Deloitte said.

Like other card issuers, including Canadian Tire Corp. and Toronto-Dominion Bank, which have tightened their lending practices, Amex Bank explained its rate hike by saying the costs of borrowing have increased "substantially" in recent months. It also said these changes are "in line with the market" and the majority of its cardholders pay their balance in full on time.

The Deloitte & Touche study comes as controversy over such practices grows while Ottawa pours billions into the financial system to ease lending and the Bank of Canada slashes its trendsetting rate.

Critics have accused the federal government of bungling an opportunity to provide meaningful relief to consumers through measures in the federal budget.

The Canadian Community Reinvestment Coalition, an Ottawa-based bank watchdog group, said the government should require "banks to prove through an independent audit that their credit card and other consumer and small- and medium-sized business loan interest rates and fees do not amount to gouging."

Porn interrupts Super Bowl TV coverage

Arizona fans tuning in for climax of American football season get 30-second view of Club Jenna cable channel

• Robert Booth
• guardian.co.uk, 
• Monday 2 February 2009 13.41 GMT

The Pittsburgh Steelers (in white and yellow) and the Arizona Cardinals in action during Superbowl XLIII. Photograph: Timothy A Clary/AFP/Getty Images

Since Janet Jackson's bejewelled right nipple popped out during the half-time show at the 2004 Super Bowl, the term "wardrobe malfunction" has become part of the rich history of American football's showpiece event.

Yesterday, as this year's clash between the Pittsburgh Steelers and the Arizona Cardinals neared a thrilling climax, TV viewers in Tuscon, Arizona, witnessed an intimate exposure of a completely different order.

Shortly after 7.30pm, with less than three minutes to play in a tightly fought final, the Cardinals had taken the lead with a crucial touchdown. Fans watching in Arizona would have been forgiven for scenting a victory for their team against the odds. Then the pictures from Tampa disappeared.

Instead, viewers in the Tuscon area were astonished to see a woman unzipping a man's trousers to reveal "full male nudity" followed by what was described as "a graphic act" between the couple. Somehow, the feed from Super Bowl XLIII had been mixed up with a 30-second excerpt from Club Jenna, an adult cable TV channel featuring Jenna Jameson, one of America's most famous porn actresses.

"I just figured it was another commercial until I looked up," Cora King, of Marana, told the Arizona Daily Star newspaper. "Then he did his little dance with everything hanging out."

Another viewer, Jeanene Piek, said she was outraged that her granddaughter had seen the clip. "I was in a state of shock. I am totally disgusted," she said.

The Tucson-based KVOA-TV said it was "dismayed and disappointed" at the interruption, which affected viewers taking a cable feed from Comcast, a cable television company.

"KVOA will investigate what happened and make sure our viewers get answers," said the company president, Gary Nielsen. "When the NBC feed of the Super Bowl was transmitted from KVOA to local cable providers and through over-the-air antennas there was no pornographic material."

Once the pictures from the Super Bowl returned, Cardinals fans did not get the climax they were looking for. The Steelers pipped them 27-23, scoring with only 35 seconds left on the clock.

The Scope Today

Leo (July 23 — Aug. 22)

Sit in your favourite place of relaxation and direct your thoughts to issues that make you smile. Tension about the future is needless. By feeling good today, you will ensure a good tomorrow.

Pisces (Feb. 20 — March 20)

A loud voice is not always necessary. Venus will guide you to say the right thing in the right way.

Gemini (May 21 — June 21)

You are capable of attaining great things. But for any of this to come to pass, you need to have real faith in your ability to make stuff happen.

Scorpio (Oct. 24 — Nov. 22)

The truth can be like a sharp sword. Those who possess it have a responsibility to wield it carefully lest they hurt innocent people. So watch what you say and to whom.

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