Consumer agency softens fee limit

Consumer agency softens fee limit

WASHINGTON

The Obama administration’s consumer financial watchdog agency is backing off a plan to limit big upfront fees on credit cards, a move that could hit borrowers with poor credit histories especially hard.

The Consumer Financial Protection Bureau acknowledged Thursday that its proposal would increase costs for some cardholders and allow banks to charge more in fees.

The CFPB was set up after the financial crisis to protect consumers from loans and cards with hidden fees or other traps. Thursday’s decision shows the difficult line the young agency must walk, allowing banks to make enough money so that they can continue to offer loans and cards while protecting consumers from fees that it considers abusive or deceptive.

Measure on child identity theft passed

ANNAPOLIS, Md.

As more and more children are having their credit ratings damaged by identity theft before they think of borrowing a dime, Maryland lawmakers have approved a first-of-its-kind measure to enable parents to take steps to protect their kids.

The Maryland Child Identity Lock bill, which a spokeswoman for Gov. Martin O’Malley said he likely is to sign, will allow parents to take the step of freezing their child’s credit at any time. Supporters hope it will be a model for other states to protect not only children, but also disabled and elderly people who can be particularly vulnerable to identity theft.

“This just freezes the information to ensure that it’s not used for ill purposes,” said Delegate Craig Zucker, a Democrat who sponsored the bill in the House of Delegates.

Stocks surge

NEW YORK

Encouraging signs from two of the most important zones of the world economy, the powerhouse of China and the debt-burdened countries of Europe, drove the Dow Jones industrial average up 181 points Thursday, its second-biggest gain this year.

China’s central bank reported a surprising jump in loans in March. That eased concerns about a sudden slowdown in the Chinese economy, whose growth has helped pull the globe out of recession.

Italy’s government easily sold $6.4 billion in bonds to investors. After the auction, borrowing rates for Italy fell, European stock indexes reversed earlier declines and worries about the continental debt crisis eased, at least for the day.

Natural-gas prices stay at 10-year low

NEW YORK

A 10-month slide in natural-gas prices took a breather after the government said U.S. supplies didn’t grow as much as expected last week.

The futures contract price slipped by just a tenth of a penny Thursday to finish at $1.983 per 1,000 cubic feet in New York. That’s a 10-year low, but the price was relatively stable compared with Wednesday, when fears of surging supplies sent natural-gas futures tumbling 2.3 percent to the lowest price since Jan. 28, 2002.

From wire reports

Selected local stocks

STOCK, DIVIDENDCLOSECHANGE

Aqua America, .66, 21.71 .08

Avalon Holdings,4.63—.07

Clear Channel, .77 72.88 .14

Cortland Bancorp, 8.25—.50

Farmers Nat., .126.38 —.06

First Energy, 2.20, 45.20.18

FirstMerit Corp., .64,16.34 .21

First Niles Financial, .32,8.05.00

First Place Fin., .70—.01

FNB Corp., .48,11.72.08

General Motors,24.30.27

General Electric, .68,19.30.29

Motors Liquidation, .0422.00

Huntington Bank, .16, 6.425.10

JP Morgan Chase, 1.20,44.84.83

Key Corp, .12,8.35.06

LaFarge, 10.69 .32

Macy’s, .80, 40.33.94

Parker Hannifin, 1.56, 83.691.68

PNC, 1.60,63.41.94

RTI Intl. Metals,23.121.45

Simon Prop. Grp.,3.80,145.732.37

Stoneridge 9.28 —.05

United Community Fin. 1.48—.25

Selected prices at 4 p.m. Thursday. Provided by Stifel Nicolaus. Not to be construed as an offer or recommendation to buy or sell any security.