The Credit Card Accountability, Responsibility and Disclosure Act has given protection to Americans against credit card issuers, but it has left the the industry scrambling for profit. The limitations put on companies have forced them to find new means of profit, and as KOMO News in Seattle reports, several are beginning to do so discreetly.
The financial news site claims that critical changes to balance transfer fees, cash advance fees, foreign transaction fees and annual fees are already being made. Synovate, a market research firm, found that the average interest rate increased to 14.7 percent in the second quarter of this year. This is the highest since 2001.
KOMO News says that the best precautionary measure consumers can take is to read all terms and conditions thoroughly prior to applying for credit. The CARD Act is aimed toward providing consumers with more clarity in the fine print. Minimum payments are another factor on the rise, but KOMO says borrowers can still protect themselves from debt by paying their monthly bills in a timely manner.