By Jeff McKinney
The Cincinnati Enquirer

Record-low mortgages, prompting more people to refinance this year, possibly helped consumers slash $1.3 billion off credit card debt.

Consumer revolving credit dropped to $725.5 billion in June, down from $726.8 billion in May, says Cardweb.com, which tracks electronic payments. The drop in June was the first decline this year. In contrast, that figure was $715 billion last June, when mortgage rates were higher than in recent months.

The decline may be tied to a record number of Americans refinancing. Many consumers have refinanced mortgages to take out equity out of their homes and pay off other debt, such as credit cards with higher interest rates.

By shifting that credit card debt to mortgages, consumers also can deduct the interest off annual taxes.

Ohioans could get part of settlement

More than 43,000 Ohio residents who had home loans with Household or Beneficial Finance could soon be recipients of a $31.8 million settlement that the lenders have been forced to pay.

The settlement resolves investigations by all 50 states and the District of Columbia into allegations of unfair and deceptive mortgage lending practices by Household International through its Household and Beneficial Finance operations.

The states alleged that Household overcharged borrowers with fees, interest and misled them with other items such a pre-payment penalties and credit insurance. Under the settlement, Household agreed to pay $484 million nationally.

The Ohio Department of Commerce's Division of Financial Institutions and Ohio Attorney General Office say eligible consumers will soon receive more details regarding the settlement process.

For more details, call (888) 780-2156 or visit Web site.

Peoples posts gain in 3rd-quarter profits

Higher fee income helped the parent of Peoples Community Bank in West Chester post a 5.2 percent gain in its fiscal third-quarter profits.

Peoples Community Bancorp earned $966,000, or 38 cents a share, up from $918,000, or 37 cents a share, a year earlier. The higher fee income came as the bank boosted fee income and reduced the amount of it money it set aside for potential problem loans.

Peoples, with assets of $622 million, operates 11 branches in the Greater Cincinnati area.

E-mail jmckinney@enquirer.com