JPMorgan Chase Says New Credit Card Law To Cost Firm At Least Half A Billion Dollars A Year
JPMorgan Chase revealed the estimate Monday in a regulatory filing:
In addition, as a result of the recently-enacted credit card legislation, management estimates, which are preliminary and subject to change, are that Card Services' annual net income may be adversely affected by approximately $500 million to $750 million. As a result of all these factors, management currently expects Card Services to have a net loss for the full year 2010.
The Credit Card Accountability, Responsibility, and Disclosure Act of 2009 bans or limits deceptive and unfair practices, including retroactive rate increases, late fee traps like weekend deadlines and "universal default," or raising rates because of a borrower's delinquency with another lender.
The law gives the industry until February 2010 to comply with most of the rules, but since many banks started to jack up interest rates in advance of enactment, Congress is now considering moving up the date to December. The Federal Reserve cautioned Congress against it.
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- wayseeker
- added this
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That's still not enough. Fire your bank, switch to a credit union. Cost these thieves more money. Drive them out of town... As U can tell, I don't like large banks.
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- tomofnorthcal
- 13 days ago
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LOL - In other words they will be losing a billion dollars they've stolen from credit card holders.
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They literally just got me on a weekend deadline. Maybe this cost cutting will stop them from calling me at 8am on a Sunday. That, would be nice.
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Oh waaaaa! How many years have they been sticking it to the average Joe with their compounded interest and loan shark rates. CC companies are the downfall of the Western world.
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- manfreddrake
- 13 days ago
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Can you hear that? It's the worlds smallest violin.
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They use bailout money to line their pockets to the tune of billions of dollars and then cry when they will lose less than a billion dollars by NOT deceiving their customers..... and of course the Federal Reserve cautioned against it! Who do you think profits from these big banks????!!!
The audacity.....
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- viva_canuks
- 13 days ago
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Two of my wife's cards have already sent her statements of interest increases effective January 2010.
Her Chase card @ 15% is going to 23%
Her US Bank card @ 12% is going to about 18%Seriously, these are practically default rates when she did nothing wrong! The letter said basically that if she didn't like it that she had to close her account to keep her current rates and just pay on the balance until it's gone.
If theses banks are going to be hurt this much from the new laws, it only shows how they have been making a killing using unfair tactics.
Last year Chase #@$#ed me over defaulting me from a locked in 3.5% up to 12% simply because my normally scheduled bill-pay from my bank "supposedly" was received a day late by Chase, even though my bank sent it off at about the same time it had been doing for years before that. My bank even sent Chase a letter of good faith stating that the delay was not my fault and that I shouldn't be penalized for it... Chase basically said "tough shit". The actual cost to me... about an additional $100 per month....
Fuck JP Morgan Chase!!!! May those greedy bastards rot in hell!
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poor credit card companies. fairness is so unfair
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- lionessgrrl
- 12 days ago
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The law doesnt go far enough it should be made retroactive
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it will cost them half a billion a year,..or $500,000,000.00,....and yet they will still make 10 billion ($10,000,000,000.00) in profits each year
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I am sick and tired hearing the banks bitching about the are going to lose money because of the new laws. F them!
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- LadybugLady
- 12 days ago
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it's funny how the bad guy (in this case, Chase) always feels like he is taking a loss when he no longer has a chance to steal and cheat the good guys (the U.S. general public, the people!!!)
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Big Babies!! Serves them right! Don't worry - they will find some smart kid out of grad school who will find another way for them to bilk their clients out of money.
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When will everybody realize that WE ARE THE CONSUMERS....if we want these "bad guys" out of business all we have to do is not get a credit card from them, if we just spend the money we actually have in the bank under our name none of this would even be an issue.
