Bank executives told audiences at recent industry events that pending credit card rules and current economic stress have forced lenders to reinvent themselves. Capital One CFO Gary Perlin told a New York audience that he expected many credit card issuers to restructure their fees. Meanwhile, James Dimon of J.P. Morgan Chase & Company told attendees at another conference that tighter lending practices would stem further credit card losses.
On a recent conference call, Visa Chairman and CEO Joseph Saunders told investors that many banks will shift their marketing efforts toward profitable initiatives. "I think that our clients are pretty smart about their businesses," said Saunders. "I think they know what they are doing and I think they will promote those things they think will resonate at a particular point in time." Saunders noted that he has already seen his company's clients issue more debit and prepaid payment cards during a period when banks have been reluctant to extend credit.
How do you feel about the new fees and lending changes? We welcome you to share your ideas on our active credit card forum.
About the Author
Curtis Arnold, a nationally recognized consumer educator and advocate, has been educating consumers about credit cards since 1998. New! Curtis is the author of "How You Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line" (FT Press, 2008). He is also the co-author of the upcoming Complete Idiot's Guide to Person-to-Person Lending (Alpha Books/Pengiun Group USA, April 2009), a contribitor to The Ultimate Allowance (InnerWealth Publishing, 2008) and is extensively featured in 42 RulesTM for Driving Success With Books (Super Star Press, January 2009).