Last month's Fed move to cut interest rates, for the first time in two and one-half years, will impact credit card rates just ahead of the holiday shopping season. Of the nation's $438 billion bank credit card outstandings, nearly $300 billion is tied directly to the prime rate. With a 50 basis point drop American consumers will save about $1.5 billion in interest charges over the next twelve months. The rate cut will most likely spill over into other indices and eventually affect a total of about $375 billion in credit card outstandings. More than 85% of the industry uses variable interest rates. The rate cut is also good news for consumers as it came just ahead of the start of the fourth quarter. About half the industry adjusts rates quarterly while the other half adjust monthly. Many American cardholders will see an interest rate reduction with their October statements. The average American household with $5300 in bank credit card debt will save about $2 per month if the prime drops by 50 basis points this week.

Chase Manhattan is launching the first VISA and MasterCard credit card designed to help users make sense of the fine print: The Chase LensCard. The LensCard has a built-in magnifying lens to make small print easier to read. The Chase LensCard provides a simple and practical solution to such inconveniences as reading the small print on restaurant receipts and bills, in telephone books and directories or anytime you forget your glasses. The LensCard, which is available exclusively through Chase, offers quality resolution and magnifies print three and a half times its existing size. The magnifying lens is in the center of the left side of the credit card and measures 1-1/8 by 3/8 of an inch in size, so it's unobtrusive and doesn't interfere with the cards operation. For more information call 800-203-1851. Current Chase cardholders should call 800-323-6296 to find out how they can convert their current Chase credit card to a Chase LensCard.

Capital One and World Championship Wrestling joined up last month to unveil the 'WCW/Capital One MasterCard' credit cards to 32 million professional wrestling fans across the country. The new MasterCard offers 12 different card designs featuring images, ranging from pictures of the organization's most famous faces to the WCW or "New World Order" logos. Cardholders receive benefits ranging from discounts on all WCW catalogue merchandise ordered by telephone, a quarterly newsletter and automatic entry into a sweepstakes for a trip to a WCW pay-per-view event. For more information call (800) WCW-CARD.

Introductory rates for credit card offers are running significantly lower than last fall. According to CardWeb's CardWatch service, teaser rates of 2.9%, 3.9% and 4.9% are emerging as this year's most common pricing compared to the 5.9% and 6.9% intro rates for 1997. This month, Travelers Bank USA unleashed its new 'Quicken Platinum VISA' with no-annual-fee and 0% APR for the first six months. The 0% intro rate applies to new purchases only. A 5.9% intro rate applies to balance transfers and cash advances. The on-going APR is prime +7.9%. The 'Quicken Platinum VISA' offers cardholders the ability to download card activity via dial-up connection or Internet access. The personal financial software also categorizes transactions. Travelers is also offering 'Quicken Platinum VISA' cardholders an optional 'TravelersMiles' rewards program for $39 per year.

Atlanta-based Nationwide Credit, Inc., a debt collection firm, has agreed to pay a $1 million civil penalty as part of a settlement with the FTC to resolve allegations that the company violated the FDCPA. The $1 million civil penalty is the largest ever in a debt collection case. According to the FTC, Nationwide's debt collectors harassed consumers, made false and misleading representations, failed to send required validation notices, failed to verify debts when requested to do so by consumers, and made impermissible third party contacts regarding consumers' debts. Nationwide settled with the FTC in 1992 for many of the same allegations and paid a $100,000 fine. The settlement also requires Nationwide to implement a comprehensive training program for all of its present and future employees with responsibility for debt collection. In addition, the owners of Nationwide have developed, and will maintain, a comprehensive 'Consumer Resolution Center' (CRC) that will document in writing all complaints and resolutions, and whose address and toll-free number will be on every letter sent to consumers.

Chase Manhattan Bank and Toys"R"Us have enhanced the rebate structure of the Toys"R"Us Visa Card from Chase, making the card even more rewarding. Beginning in this month, cardholders of the Toys"R"Us Visa Card from Chase will earn a 4% rebate, up from 3%, each time the card is used for purchases at Toys"R"Us, Kids"R"Us, and Babies"R"Us. Cardmembers will continue to earn a 1% rebate on all other purchases everywhere Visa is accepted. As an added benefit, cardmembers will now have the flexibility to choose when and how to use the rebates. For every $10 earned in rebates, cardmembers will receive a Geoffrey Reward coupon. To apply for the card, customers call 1-800-207-VISA.

American Express rolled out a new, no-fee credit card targeted to college students this month. The 'American Express Credit Card for College Students' offers access to 'The Credit Information Service' via 800-582-5823 or American Express' Website; 'Continental Travel Vouchers' allow student cardholders and a friend to fly for as little as $159 round-trip up to four times a year on Continental Airlines; two hours of free long-distance calls with the 'Connections' calling card; payment flexibility with an interest rate of Prime +0% on single purchases over $200 for 90 days, and an APR of Prime +7.9% on other outstanding balances; plus 'Purchase Protection' and 'Buyers Assurance'. Student cardholders may also enroll in the 'Membership Rewards' program for an additional $25 per year.

American Express also announced this month it is adding the 'Return Protection Plan(+)', a benefit that refunds consumer cardholders for items purchased with a Platinum Card, a Gold Card, or an Optima Platinum Card within 90 days from the date of purchase if the store won't accept returns. American Express will refund the cardholder's account for the full purchase price, up to $300 per item, up to $1,000 per year. AmEx also offers 'Best Value', a benefit that assures Gold and Platinum cardholders that they'll pay the lowest available price on purchases made entirely on the card. If they see a covered item advertised in print for less, within 60 days of the purchase date, American Express will refund the difference to their account, up to $250 per item, $1,000 per year. For more information on Return Protection call 800-297-8019.

The Pro Football Hall of Fame and Visa U.S.A. are continuing their national fan search for the inaugural "Visa Hall of Fans" exhibit at the Pro Football Hall of Fame in Canton, Ohio. As part of the new exhibit, for the first time, avid NFL fans will be honored in the hallowed halls of professional football. Grand prize winners representing each NFL football team will be announced in December 1998 and honored at the "Visa Hall of Fans" grand opening in January 1999. Each winning fan will receive a two-day, two-night trip for two to Canton, Ohio, to be honored in pro football's ultimate shrine. Contest entrants are asked to provide a photograph of themselves and a 50- word essay explaining "Why I Should Represent My Team's Fans at the Pro Football Hall of Fame." Fans should log on to http://www.visa.com or call 1-800-VISA-511 prior to entering for complete rules, including entry requirements and judging criteria. Entries then must be sent by mail to: "Visa Hall of Fans" at the Pro Football Hall of Fame Contest, P.O. Box 4632, Blair, NE, 68009-4632. Entries must be postmarked by 10/23/98 and received by 10/30/98.

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