Credit card operations are usually the most profitable business of a bank. About 30% of all profits earned by credit card lenders were from cardholder fees. Most large banks have raised late fees and over-the-credit-limit fees to at least $35. Many lenders will now raise your interest rate from around 16% to 35% or more if you pay late or exceed your credit limit. The amount of interest and fees are so high that consumers often end up paying noting but interest and fees without reducing their principle balance. Industry supporters claim the reason for increased profits is due to the high number of consumer bankruptcies. Opponents claim these industry-wide profit levels and fee increases can only be explained by uncompetitive practices and consumer price gouging.
S.673 – Protecting Consumers from unreasonable Credit Rates Act of 2013
I oppose reforming current credit card fee policy and wish to defeat S.673
I support prohibiting a creditor from extending credit to a consumer under a credit card plan for which the fee and interest rate exceeds 36%, and wish to pass S.673