How About the New Law Effects Credit Card Business

It is said that 2009 was a terrible for all of the credit card business. Dimon, CEO of Chase, also expressed this view in an annual letter to shareholders. He said the new credit card laws take effect, it can reduce Feb.22 500 million to almost 7.5 billion U.S. dollars from the chase. And Charge-off rate, the number of credit card debt as the company had to cancel chase, reaching 8.5%, has raised an unprecedented level. However, most do believe the end is entirely appropriate chase method to eliminate the active cooperation of a number of now-illegal practice, such as universal default, the card interest rate rise has nothing to do if you pay bills late.
Consumers did not consider certain acts have been prohibited by law, such as charging over-the-limit fees no customer consent, the existing balance plus interest. Meanwhile, the law requiring payment of the highest interest rate. Response to reduced bank credit, such as the provision of low interest rates credit cards and promotions to reduce the rate difference between the transfer and entry of a large number of users do not use for some time been cut off. Reduce the balance was not even catch up with 2 billion U.S. dollars. The new regulations limit the ability of banks to make adjustments, over time, they will no longer be the card to 15% of existing customers is considered too dangerous. The bank's profit and 700 million 8 million U.S. dollars, and in 2008 published the card services 22 million net loss for the year.

Although poor performance, which was better than competitors of chase. Its market share, improve the stock of cards 25.29 U.S. dollars changed hands between 47.47 U.S. dollars in the past 52 weeks. JP Morgan Chase's shares increased by 44 points 45.14 U.S. dollars. 16.34 billion U.S. dollars of the chase and not the balance, with over 1.45 million cards in circulation.

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