Today’s top news headlines feature a rundown of Citi’s new credit cards and why Americans can expect their take home pay to rise next year. Plus, see why most Americans have been unemployed for one year or more.
More lenders turn away from short sales
The Boston Globe
Fears over the rising incidence of short sale-related fraud has many lenders skittish about entering into transactions, leaving many struggling homeowners with few other options other than foreclosure. The trend is both negatively impacting homeowners, who lose their homes and suffer credit score damage, and lenders, who are often forced to auction the property at a lower price than they would have earned from a short sale.
Sixty percent of jobless unemployed for a year or more
New data reveals roughly six in 10 unemployed Americans have been jobless for one year or longer, raising concerns about their chances of re-entering the job market. The survey conducted by the John J. Heldrich Center for Workforce Diversity at Rutgers University shows more unemployed Americans are seeing their financial conditions worsen, putting them at risk of credit score damage, foreclosure and bankruptcy.
Citi unveils four new credit cards
The New York Times
The credit card overhaul recently announced by Citigroup will feature four new credit card offerings by the bank, as well as the elimination of some fees and credit products. However, the bank will also raise its annual fees and remove some previously offered benefits, replacing them with new perks.
Most Americans will see paychecks increase in 2011
The new tax law signed last week will decrease the employee payroll tax by 2 percentage points, raising many workers’ take home pay in the coming weeks. Most workers will see these changes after the first three weeks of the year, once employers adjust their payroll systems.
Capital One faces lawsuit for $286 million
A Capital One customer is suing the lender for $286 million in damages, the exact amount the creditor erroneously sent her as a bill. The customer alleges Capital One’s actions constitute “terroristic debt collection methods,” and demands compensation.