The Unintended Consequences of the New Credit Card Legislation

With the recent passage of the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (CARD), credit-issuing companies stand to lose a significant revenue stream, namely, penalty charges.

No one can reasonably believe these businesses will accept a reduction in their profits without seeking to replace that income elsewhere in their operations.

With the curtailment of penalty charges and seemingly arbitrary consumer interest rate increases, banks and credit card companies will likely try to recapture lost revenue through expanded fees and service cuts. Continue reading “The Unintended Consequences of the New Credit Card Legislation” »