Bank CEO predicts rise in credit card losses

JPMorgan Chase & Co. CEO Jamie Dimon sees more trouble ahead for the bank’s credit card and commercial real estate businesses.

Dimon said Wednesday that he expects losses on Chase credit cards to jump to 9 percent of total credit card loans in the second quarter, up from a loss rate of 6.86 percent in the first quarter and more than double what the rate was before the credit crisis. Those losses could go higher if unemployment increases more than expected, Dimon said. Default rates for credit cards usually reflect the jobless rate during tough economic times.

Many credit cardholders seeing rates rise, even double

Judy Eastman said she has never been late with a payment and usually, but not always, pays off the full credit card balance each month. No matter, her card issuer still doubled her interest rate on one credit card.

“For no reason at all, they raised my rates,” the West Bloomfield, Mich., retiree said. “It’s totally unreasonable.”

Eastman’s two Capital One cards shot to 17.9 percent. One had an annual percentage rate of 8.9 percent, and her Capital One No Hassle Rewards card had been 13.3 percent.

Citigroup Inc. reports it sold $1.3 billion in loans

Citigroup Inc., the third-biggest U.S. MasterCard and Visa lender, sold $1.3 billion in loans as it exits the business of issuing credit cards on behalf of retailers, trade associations and other groups.

The loans were linked to three of New York-based Citigroup’s North American credit-card partnerships, the bank said Monday in a statement. Neither the buyer nor the partners were identified. The sale represented about 2 percent of the $60.4 billion of total loans that Citigroup manages on behalf of its card partners in North America.

Starbucks beefs up its loyalty program

Starbucks Corp. plans to combine its gift and loyalty card programs to spur consumers to visit more often with the incentive of free beverages.

The new program, dubbed My Starbucks Rewards, allows some registered card holders to redeem a complimentary drink after every 15 purchases, the Seattle-based company said in a statement Friday. It grew out of complaints from some of the 850,000 members that their paid subscription didn’t offer more perks, said Terry Davenport, senior vice president of marketing.

The Seattle-based coffee seller is looking to give consumers a reason to come to its cafes more often after many pared back visits and bought fewer coffees. It began the Gold Card program last year, with a $25 annual membership fee and a 10 percent discount on beverages, and found holders spent 15 percent more with the card than they had before, the company said in January.

Insurance firms offer gift of coverage Like cash, use gift cards wisely

NEW YORK — Expecting a stash of gift cards Christmas morning? Better use them wisely.

That’s become a little easier, because many retailers have eliminated expiration dates and fees that sap the cards’ value over time.

The changes come well ahead of proposed rules from the Federal Reserve that wouldn’t allow gift cards to expire for five years, among other changes.