Discover says credit card use rose in 2Q
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Despite concerns about the economy, Discover’s customers are using their cards more often and paying their bills on time at record rates.

The company’s profit fell 10 percent in its March-May quarter, as the credit card issuer freed up less money from reserves set aside to cover customers’ unpaid bills than a year earlier as its loans increased.

But credit conditions are improving. Late payment rates and customers’ loan defaults dropped sharply, reaching historic lows. Discover’s management expects that charge-offs, or loans written off as unpaid, will modestly increase over the next 12 months as the company widens its pool of borrowers.

The economic shakeout of the last few years has left credit cards in the hands of more affluent consumers who are better able to pay their bills in full each month, while those with lower credit scores and presumably less ability to pay are now less likely to use credit. Tighter underwriting standards also have pushed loss rates lower.

Discover Financial Services said sales volume on its namesake cards rose 5 percent during the March-to-May period to $ 26.1 billion, reflecting more card use by customers, as total retail sales rose 5.7 percent in the same period according to government figures. Credit card balances also grew nearly 4 percent to…………… continues on

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Credit card meters in place in Ocean City
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OCEAN CITY — Parking in Ocean City may become more accommodating as the city has installed new meters that allow people to use credit or debit cards instead of change.

“Change” has come to Ocean City, as new parking meters have been installed that do not require people to dig around looking for loose coins.

“Actually it’s a cap for a curb meters you can still do quarters or change or you have the option to use a credit or debit card right there on the spot without having to walk to a kiosk which is important to us,” Councilman Michael Allegretto, Ocean City council president. “So, I think it’s kind of the best of both worlds.”

The new meter heads were installed free of charge by a company based in San Diego.

They are allowing ocean city to use this summer season as a trial period to test the meters and see if they are a viable option for the future of parking in the city.

“We hear the complaints about the availability of change especially in the beach and boardwalk areas where the rates are a little higher so this gives the customers a nice option,” said Frank Donato, Ocean City finance director.

A total of 69 meters have been installed throughout the city, 57 on Ocean Avenue between 11th and 13t…………… continues on NBC40

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