Too damn bad.
Late last year, JPMorgan Chase JPM, Fortune 500, the nation’s largest credit card issuer, warned it expected its credit card business to lose as much as $750 million this year as a result of the new legislation.
Executives at rival Citigroup C, Fortune 500, which issues cards to consumers from Maine to Mexico, warned last month the revenue lost by its domestic business could tumble anywhere between $400 million and $600 million.
All told, the new law is expected to cost the industry as much as $5.5 billion in lost revenue this year and more than $50 billion through 2015, according to the credit card advisory firm R.K. Hammer.
via Banks nervously await new credit card law – Feb. 19, 2010.
Tough. The money you have made has been by entrapping and enslaving people in debt. You preyed on people and lent to people who you should not have lent to in the first place. A long time ago it took a great credit history and other determining factors to get a credit card. Now they’re given away.
Banks made the money off of the interest payments so it was more about volume than anything. Then they’d hike the interest rates to extract even more money.
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