JP Morgan CEO expresses discontent over new credit card regulations
The Credit Card Accountability, Responsibility and Disclosure Act that was signed into law in 2009 went into full effect on August 22. The new legislation provides consumers with clearer credit card terms and conditions, along with protection against interest rate and fee hikes. All credit card companies are coping with the regulations differently, but JP Morgan chief executive Jamie Dimon hasn’t been shy about his feelings.
This week, the CEO of the financial service giant expressed his discontent with new credit card rules, including the CARD Act. Prior to the new financial restrictions, Dimon wrote an op-ed piece in the Washington Post in support of non-bank resolution authority. Although he says his company is not concerned with newly proposed capital rules, Dimon says he doesn’t care much for current regulations.
“It is highly ill-conceived, doesn’t reduce risk at all,” Dimon said at a conference in New York. “As a matter of fact, it probably complicates it for some [customers].”
Factors of the CARD Act that have made a notable impact are capped late fees, the elimination of over-the-limit charges and rate increase reviews every six months, according to The Street, a financial news site.