NEW YORK, June 22 (Reuters Breakingviews) - With more than two open accounts for every American, credit cards are practically part of the family.
The point of credit cards is to make spending easier, yet in practice their complexity rivals the edgiest financial derivatives.
At Capital One, late fees account for a little less than $2 billion of revenue, or roughly 5%, a year.
If late fees have raised hackles among U.S. lenders, they’re only a taste of what could lie in store.
Currently, issuers can charge $30 for a first late payment and $41 for late payments thereafter if they happen within the following six billing cycles.
Persons:
Joe Biden’s, Biden, Banks, don’t, Goldman Sachs, Rohit Chopra, Michael Barr, that’s, There’s, Chase, they’re, –, Joe Biden, Jeffrey Goldfarb, Oliver Taslic
Organizations:
YORK, Reuters, JPMorgan, Consumer Financial, Bureau, American Bankers Association, Citigroup, Federal Reserve, Securities and Exchange Commission, Discover Financial Services, Bank of America, One, Fed, Biden, University of Michigan, Apple, Chase Sapphire, American Express, Capital, U.S, Consumer Financial Protection Bureau, New York Fed, Thomson
Locations:
U.S, United Kingdom