What hurts consumers financially
also hurts business
Josh Frank discuss the report findings.
CRL research shows losses on credit cards in the current downturn rose faster at banks using unfair, deceptive practices. High-cost penalty fees and interest rates didn't mitigate risk—as credit card issuers claimed—but instead were the risk that pushed consumers into hardship and default. The same holds true for high-cost fees and interest banks charge for overdraft and payday loans. Reforms have ended many of the worst credit card industry practices for consumers, but the new rules don't apply to business credit cards. And reforms are needed to end predatory bank overdraft and payday.
Listen to NPR's Marketplace story on how banks benefit from the CARD Act they lobbied against.