The big credit card companies usually are pretty happy with themselves. If you are VISA or Mastercard, you have the world on a string. You have millions using your cards, paying you ridiculous interest on the money you have lent them, and an exorbitant number of fees as well. However, the times they are a changing.
There are many new companies out there giving out cards as well. Not to mention the numerous law suits filed practically daily against them regarding hidden fees, etc. that they have to deal with. Then of course is the new slew of consumers getting rid of their cards in an attempt to pay down their debt. Now interest rates are going up again, which leaves them with even less new customers, so it is no wonder the credit card companies are beginning to panic.
With Bank of America now announcing that they would be issuing their own cards and pulling away from Visa and Mastercard, the two giants are going to feel an even larger hit. In addition, both J.P. Morgan Chase and Citigroup reported lower first-quarter earnings for 2006 due to increased numbers of American cardholders paying off their balances and closing their cards. ■
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