Discover: Cash Flow Issues Dim Small Business Outlook

Discover’s index that measures small business confidence dipped to 86.1 in June from 87.4 last month, as concerns mount over cash flow issues and the outlook over the economy declines. Small business owners reporting temporary cash flow issues jumped to 51 percent in June, up from 45 percent in May – the highest since January.

Debit Card Issuers: 30% Likely to ‘Opt In’ for Overdraft Plans

Debit card issuers expect 30 percent of consumers to “opt in” to overdraft services under new rules that prohibit financial institutions from arbitrarily imposing fees for overdrawing an account. Large banks expect 20 to 40 percent of their customers to opt in.

Discover Card: Confidence, Spending Goals Improving

Consumer confidence, bolstered by a positive outlook among young adults, surged to its highest level since November 2007 on Discover’s U.S. Spending Monitor.
The survey by the issuer of the Discover Card jumped 5.5 points to 91.5 (out of 100) in April. Overall, 34 percent, a new high, believe the U.S. economy is improving.

Discover’s March Report: Small Business Outlook Tumbles

Discover Card’s small business index measuring economic outlook took a 9.2 point dive to 75.7 in March, with a surge in owners who say their businesses are deteriorating. More than half, or 53 percent, or respondents, said the economic climate will get worse in the next six months, compared to only 37 percent who answered that same in February.

Discover: Credit Card Late-Pays Ease, But Sees 1Q Loss

Discover Financial Services sees a more positive outlook for 2010 with a stabilizing credit card delinquency rate, but it took a net loss of $104 million, or 22 cents a share, in the first quarter ended Feb. 28 – that includes a previously announced loan-loss reserve increase of $305 million. Its first quarter loss compares to a net income of $120 million for the first quarter of 2009. However, Discover card sales volume increased 5 percent from the prior year to $22 billion.

Discover Card Issuer Expects 1Q Loss, Boosts Credit Reserves

Although its credit delinquency rate may have leveled off, Discover Financial Services is boosting its reserves to cover loans deemed uncollectible by $305 million, and it expects to report a first-quarter loss of 22 cents to 23 cents per share. Discover said the rate of borrowers becoming 30-days delinquent is estimated to be about 5 percent, a reduction of 25 basis points from the fourth quarter 2009.

Discover Spending Study: Consumer Cutbacks Ease

The U.S. Spending Monitor index from the issuer of Discover credit cards rose 2.3 points to 87.5 as the economic outlook from consumers improved, indicating an easing of spending cutbacks fostered by the prolonged recession. Nonetheless, Discover reported no improvement in the attitudes of consumers surveyed when it comes to personal finances.

American Express, Discover Educate on Credit Card Reform

On the day landmark credit card laws took effect and made headlines worldwide, American Express and Discover released statements seeking to educate customers with online guides on the reform. Most other major credit card issuers did not release statements on the most sweeping credit card legislation in years – the first to generally ban retroactive interest rate increases and restrict certain fees.

Discover: Consumers Feeling Better About Their Finances

Despite lingering pessimism about the U.S. economy, consumers are feeling better about their personal finances, according to Discover’s U.S. Spending Monitor, a monthly glimpse into Americans’ financial outlook. In January, more consumers said their finances were in good shape or improving. Overall, 34 percent rated their personal finances as good or excellent – a 3-point increase from December and a 9-month high, Discover said.

Discover: Small Business Confidence Jumps

More small business owners surveyed this month have increased expectations that conditions for them will improve in the next six months, according to Discover’s Small Business Watch. More business owners are planning to increase spending, with 25 percent saying they will spend more on advertising, inventories and capital expenditures. This figure is up from 18 percent in December. There was also a jump in this category in the December-November time frame.

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