Credit Card Companies Surrender Billions in Lost Fees
Consumers have already saved $5 billion in credit card fees thanks to new laws, according to a recent report in USA Today. Researchers from the newspaper compiled survey responses from the nation's largest banks and credit card issuers to arrive at their estimates. While banks bemoan the loss of overdraft fees, locks on variable interest rates have curbed profit margins among major credit card companies. Some estimates suggest that the credit card industry could lose nearly $10 billion in projected fees by the end of 2010 due to newly enforces rules and voluntary policy changes.

However, some industry analysts worry that all this extra cash in consumer wallets could actually hurt the nation's chances for speedy economic recovery. Experts interviewed by USA Today noted that billions of dollars in savings didn't just come from bank's profits. Critics of recent regulations told reporters that the lost profits could have been reinvested into extended credit card limits or small business loans.

About the Author


Joe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.