US Credit Card Industry Faces $70 Billion Loss

Image via Wikipedia

The US credit card industry anticipates a $70 Billion loss for 2009, based on the record high defaults for May 2009.

Bank of America, American Express and Citigroup all reported defaults in excess of 10% for May, following the trend in unemployment rates. Credit card lenders are trying to limit their losses by tightening credit limits, raising standards and closing accounts. They have also been reducing or eliminating rewards and increasing interest rates and fees to cushion against further losses.

Sphere: Related Content