Banks Are Finally Going to Have to Compete for Your Money

It’s about to get harder for banks to hold onto unsatisfied customers, and their money. It has long been a challenge for people to ditch the banks where they keep their checking accounts. But the first so-called open banking rules in the U.S. aims to change that. New rules finalized by the CFPB on Tuesday will require banks to simplify how customers transfer their data from one bank to another without losing their transaction and bill history. The aim of the regulations, formally known as 1033, is to empower consumers by giving them unprecedented control over their financial data, including who to share it with and when. As a result, customers will be able to direct their bank to move their account to a competing one with ease and use third-party applications with just the click of a button, all without paying a fee.

Apple and Goldman Sachs Ordered to Pay $89 Million over Apple Card Failures

When Apple announced it was launching Apple Card in 2019, it promised “a new kind of credit card” that was “designed to help customers lead a healthier financial life.” Now, government regulators say Apple and its partner Goldman Sachs caused harm to hundreds of thousands of cardholders by mishandling disputed transactions and by using deceptive marketing practices. The CFPB has ordered the companies to pay a combined $89 million in penalties and redress to those affected. The CFPB has also banned Goldman Sachs from launching a new credit card unless it provides “a credible plan” that the product will comply with the law.

Credit Card Companies Now Charging Extra Fees for Paper Statements

A new push to move credit card users to a digital statement will now come with a penalty for those who don’t want to comply. Credit card companies from big name retailers have been silently rolling out a fee of $1.99 if you wish to keep receiving paper statements. One of the biggest offenders is Synchrony Bank, and they have co-branded and store-affiliated credit cards with over 100 cards in their lineup, which include Sam's Club Credit Card, the Lowe's Store Card, and the Amazon Store Card. In November of last year, Citibank released new guidance to its customers saying that going paperless was "now required to access your account on Citi.com and the Citi Mobile App." There isn’t a law banning paper statements, however, but permission is required in order to start paperless billing.

28% of Credit Card Users Are Still Paying Off Last Year’s Holiday Debt

For some shoppers, the upcoming holiday season may lead to significant credit card debt. Meanwhile, some people are still paying off debt from last year’s gift buying. In fact, 28% of shoppers who used credit cards have not paid off the presents they purchased for family and friends last year, according to a recent holiday spending report by NerdWallet. This year, spending between Nov. 1 and Dec. 31 is expected to increase again to a record total of $979.5 billion to $989 billion, according to the National Retail Federation. Shoppers may spend $1,778 on average, up 8% compared with last year, Deloitte’s holiday retail survey found. Most will lean on plastic: About three-quarters, 74%, of consumers plan to use credit cards to make their purchases, according to NerdWallet.