« Aloha Committee Counsel Seeks $235,000 in Fees for One Month | Main | 2007 BAPCPA Statistics »

July 22, 2008

Must Read Empirical Study on Credit Card Profits

This is a great article by a young Harvard fellow, Michael Simkovic, which establishes with empirical data that bankruptcy filings are down because of the amendments, credit card profits are up hugely since the amendments, and credit card companies have not passed the savings from fewer bankruptcy case writeoffs onto the consumer.  Interest rates, late charges and other fees have risen in the past two years.  Why?  Apparently because of the lack of competition among credit card issuers, the lack of ability of the consumer to compare the rates of different issuers, and the lack of ability to change cards once the consumer is up to his ears in debt.  The article can be accessed here.   

July 22, 2008 in Article Reviews | Permalink

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341bfae553ef00e553cce4f78834

Listed below are links to weblogs that reference Must Read Empirical Study on Credit Card Profits:

Comments

Post a comment