An important factor behind the notable increase in profitability for the credit card industry over recent years has been the marked reduction in loan charge-off rates from the highs witnessed in late 2010. In the aftermath of the economic downturn, many cardholders defaulted on their obligations. The situation for card lenders was exacerbated by the restrictions imposed by the Credit CARD Act of 2009 as well as several Federal Reserve rules which capped interest rates and fees. But as economic c...
An important factor behind the notable increase in profitability for the credit card industry over recent years has been the marked reduction in loan charge-off rates from the highs witnessed in late 2010. In the aftermath of the economic downturn, many cardholders defaulted on their obligations. The situation for card lenders was exacerbated by the restrictions imposed by the Credit CARD Act of 2009 as well as several Federal Reserve rules which capped interest rates and fees. But as economic c...
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