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 increase their interest rate if a cardholder pays late or exceeds their credit limit. Advocates say the amount of interest and fees are so high that many consumers are unable to significantly reduce their principal balance. In 2016, credit card fee and interest income topped $163 billion, and this amount is increasing about 6% per year.

Industry supporters claim high profit margins are needed to offset the large number of consumer bankruptcies. Opponents claim record industry-wide profit levels and fee increases can only be explained by uncompetitive practices and consumer price gouging.

Pending Legislation: S.2781 - Protecting Consumers from Unreasonable Credit Rates Act of 2025
Sponsor: Sen. Richard Durbin (IL)
Status: Senate Committee on Banking, Housing, and Urban Affairs
Chair: Sen. Tim Scott (SC)