Business Briefs

America increases consumer credit

WASHINGTON — Americans reduced their borrowing in September as they cut back on the use of credit cards and auto loans amid a slowing economy. The Federal Reserve said Tuesday that consumer credit increased by a seasonally adjusted $6.5 billion in September, or 5.2 percent at an annual rate, the slowest pace since October 1999. Consumer credit in August grew by $12.3 billion, or at a 10.1 percent rate, according to revised figures. That was less than the $13.4 billion the central bank previously estimated.

Random House, Inc. splits profits

NEW YORK — Publishing heavyweight Random House Inc. announced Tuesday it will split revenues from electronic books evenly with authors, a change that could shape a heated industry debate over digital technology.

Random House, the largest English language publisher, said it will pay authors 50 percent of the revenues it generates from the sale of e-books, a miniscule market but one that is expected to boom in coming years. Authors currently earn 15 percent of an e-book's list price.

Goodyear denies recall rumors

LOS ANGELES — Goodyear Tire & Rubber Co. acknowledged Tuesday offering free replacement tires for some consumers but denied it was part of a practice known as a "silent recall." The Los Angeles Times, citing unidentified sources, reported Tuesday that Goodyear has received more than 3,000 claims since 1995 about its light-truck tires. Most of those claims have been settled, with consumers receiving replacement tires and reimbursements for vehicle damage.<