Every once in a while I have to get back to the value that is yet to be proven for internet marketing. When I say yet to be proven I am thinking here of the promise to get beyond sub 0.5% conversion rates usually seen in traditional marketing. This is the promise that is held out for the Twitter and FaceBook models that somehow they have transcended the value which traditional interruptive marketing brings. (For my thoughts on Groupon)

Mathew Ingram writes a succinct summary of the problem on GigaOm:

Both are seeing their share of the ad market grow, but there is still one big question standing between them and the multibillion-dollar valuations they have received from investors — namely, do ads inserted into social activity actually work?

Brilliant. Everyone gets excited about volume of eyeballs, but that is old thinking. Mathew summarises the problem perfectly here. Will people actually buy things that somehow are selflessly promoted by their friends.

The bigger story is highlighted in this thoughtful piece from Brad Stone on Business Week. T

Read more…

• 0 Comments

The more trouble you’re in with your mortgage, the less likely your bank may be to help. At least, that’s the idea behind the moral hazard argument banks are using to avoid assisting homeowners.

Originally an insurance term, “moral hazard” is taking on new meaning in an era of bank bailouts and help for struggling borrowers, according to the New York Times.

The term refers to the idea that people will take bigger risks if they aren’t held responsible for the consequences.

Banks are claiming they have a moral obligation not to write down a principal – or even just ease loan terms – on underwater mortgages. If they do so, banks claim, it would only encourage owners who can afford their mortgages to stop paying.

So is there any truth to their theory?

Data in the Times story shows that just 10 to 15 percent of people who defaulted on their home loans were actually capable of making their mortgage payments. Even for those financially able to make payments, most are likely under major strain from credit card debt and other obligations.

While people who walked away from their homes got a lot of press, the reality is that most folks who are facing foreclosure would prefer to stay in their house.

Read more…

• 0 Comments

Contactless credit cards could soon feature an ‘on’ and ‘off’ function to increase their security.

Researchers at the University of Pittsburgh’s Swanson School of Engineering have recently developed a new way of protecting contactless credit cards from virtual pickpocketing. The new method of card security consists of the device turning itself on and off.

Credit cards currently work by activating whenever they are in an electromagnetic field. This leaves the card open to the hands of criminal who could use portable readers to glean sensitive information about the cardholder and their spending.

The latest in innovative design from the university researchers means that the card can effectively be ‘switched off’ whilst in a wallet or purse. It will also only turn on when the consumer holds a certain area of the card. This area the

Read more…

• 0 Comments

Led by partner Vincent Howard, our San Bernardino consumer bankruptcy attorneys frequently represent people who are seeking a bankruptcy in part because they have oppressive student loan debt. This is a major issue for bankruptcy filers and younger people, who have been denied the opportunity to discharge this debt even when it’s private — where the interest rates are high — by the 2005 changes to the bankruptcy laws. Against that backdrop, the Sixth U.S. Circuit Court of Appeals decided in In re Gourlay that Sallie Mae, the student loan organization, is not permitted to set aside a default judgment obtained by filer Kristin Gourlay after Sallie Mae failed to respond to adversary proceeding seeking to find the debt dischargeable. The bankruptcy court was within its rights to find that the failure was not excusable neglect, the court said; service was proper and the appropriate person simply failed to respond.

After Gourlay, of Kentucky, filed for Chapter 7 bankruptcy, she filed the adversary proceeding seeking to determine the dischargeability of her student loans owed to Sallie Mae. When she filed, she owed Sallie Mae about $25,500.

Read more…

• 0 Comments

Do you have a question about consumer credit? You may find an immediate answer by using the search engine. If you can’t find what you’re looking for, please fill out the form, being as specific as possible.

Please note: The Ask Experian team cannot respond to each question individually. However, if your question is of interest to a wide audience of consumers, the Experian team will include it in a future column.

How can I get a copy of my son’s credit report? I believe that his father may have tried to get credit in his name. We are divorced, and he lives in a different state. I just want to protect my child. I received a card for him at my home that we never applied for.

If you are concerned that someone may have used your minor child’s identification information fraudulently, you are wise to take precautions. You can obtain a copy of your son’s credit report by sending a written request to Experian along with documentation showing that you are the child’s parent or legal guardian. You wil

Read more…

• 0 Comments