This Week in Credit Cards: Bilt Collections Error Slashes Credit Scores for 1,800+ Users

Roughly 1,850 Bilt cardholders saw their credit scores drop by 50 or more points following an erroneous credit reporting issue, according to a Wall Street Journal report.

Certain Bilt customers were sent collections notices for balances that were overdue. But the problem was that the balances weren’t theirs.

More than 1,800 Bilt cardholders receive phantom collections notices, Citi refreshes one of its American Airlines credit cards, and credit counselors have never been busier. Find out what else happened This Week in Credit Cards 💳 https://t.co/juaUHlTEyP pic.twitter.com/fJWibCluGo

— CardRates News (@CardRatesNews) August 7, 2026

A spokesperson for the company told the Journal that a third-party collections agency was responsible for the reporting error that led to mistaken collections notices being sent to roughly 1,850 cardholders for erroneous overdue balances.

This isn’t the first time that Bilt’s credit card program has run into a few bumps in the road. But this time, cardholders saw their credit scores take a hit. Some users reported that the case of mistaken balances caused their scores to go down by 50 or more points.

To its credit, Bilt is taking steps to make up for the error. The report revealed that, in a message to cardholders, Bilt said that it would give affected customers 2,500 rewards points to make up for the inconvenience the issue caused. 

The company also said it would work directly with those customers and that efforts to correct the inaccurate collections reports should be reflected within three business days on credit reports.

Owning the Citi / AAdvantage Executive World Legend Mastercard will soon be more expensive. The annual price tag for owning the card is currently set at $595. But beginning on August 23, new cardholders will face a $695 yearly charge.

The price hike of more than 16% may be a tough pill for consumers to swallow, but the card is also offering new perks that can deliver more value to cardholders. 

Scott Long, Senior Vice President of AAdvantage at American Airlines, said in a press release that the refreshed card raises the bar on premium travel, and its exclusive benefits and experiences help customers “get more out of the AAdvantage program.”

The Citi / AAdvantage Executive Mastercard will remain the only card that includes membership to the Admirals Club, according to Citi. But it now allows cardholders to earn up to $500 back in statement credits on eligible purchases from American Airlines Vacations. 

Other highlights of the enhanced program include up to $180 in Lyft credits each year and up to $100 back in statement credits on eligible Admirals Club and inflight purchases. Citi said in the release that cardholders can access up to $2,300 in value with the card.

Consumers are seeking help from credit counselors in record numbers so far this year, according to a new report from USA Today. It’s no secret that the prices of everyday items such as gasoline and groceries are higher for the most part than they were in recent years. 

That may be causing people to spend beyond their household budgets and go into debt. Numbers from the Federal Reserve Bank of New York show that total household debt went up in the first quarter of 2026 to hit $18.8 trillion. 

In the first six months of this year, close to 15,000 new clients started plans for debt management with credit counseling organization Money Management International (MMI). Per the report, that’s the highest year-to-date total in records dating back to 2017. In addition, the total number of counseling sessions has gone up for five years straight.

The issue appears to be affecting consumers of various ages. The report indicated that people ages 18 to 29 are MMI’s fastest-growing client segment. Those from 30 to 45 years old make up the majority of MMI’s clients overall. And those ages 46 to 61 have the highest levels of debt with an average of more than $53,000.

Western Union, in a partnership with stablecoin payments platform Rain, has announced the launch of a new stablecoin-powered payment product. 

Known as Stablecard, the product is a digital wallet as well as a Visa secured credit card that’s backed by the U.S. Dollar Payment Token (USDPT), which is Western Union’s stablecoin. People can redeem USDPT 1:1 for U.S. dollars.

With Stablecard, people can receive money transfers from Western Union straight into their USDPT wallet. They can also make purchases with the product at any online or in-person location that accepts Visa. In addition, people who use Apple Pay or Google Pay can add Stablecard to those digital wallets.

Devin McGranahan, President and CEO of Western Union, said in a press release that Stablecard is the next phase in giving the company’s customers more access to global financial services.

To start, Stablecard will go live in 37 markets, some of which already have demand for stablecoins. But Western Union is planning to target more than 60 markets by the close of 2027. 

Visa announced earlier this week that it’s entered an agreement to purchase BioCatch, which is a company that provides fraud protection services. The acquisition is the latest move by the leading payment network to help its clients protect not only themselves but their customers from fraudulent activity including account takeovers and scams.

Andrew Torre, President of Value-Added Services at Visa, said in a press release on the acquisition that the cost to the global economy of account takeovers and scams is more than $1 trillion per year.

“BioCatch will help our clients stop fraud before it reaches the point of payment,” Torre added. “This acquisition is part of our strategy to help clients prevent cyber threats upstream, building trust into every transaction.”

The acquisition — which isn’t expected to close until the end of the fiscal second quarter for Visa in 2027 — is subject to regulatory approvals. Visa has poured more than $13 billion over the past five years into safeguarding payments ecosystems and helping bring fraud rates down more quickly. The BioCatch purchase comes at a cost of $2.4 billion.