New CRL Research: Predatory Credit Card Practices Hurt Banks’ Bottom Line
Center for Responsible Lending May 8, 2012 Credit card losses in the current downturn mounted faster at banks using unfair, deceptive card practices, new CRL research finds. That’s because high-cost penalty fees and interest rates were not used to mitigate risk—as credit card issuers claimed—but instead were the risk that led to higher default rates. Read the report, “Predatory Credit Card Lending: Unsafe, Unsound for Consumers and Lenders,” here http://rspnsb.li/KJEwgp. In addition to showing that practices that hurt consumers also hurt credit card issuers, the study finds: ·