Fed Reg to Cost Card Issuers $25B Posted by AVCU on 10:59 AM

In the 2/8 issue of the Wall Street Journal, a report on a study by Boston Consulting Group shows new card regulations could cost United States card issuers up to $25 billion a year in lost revenue. In the article, Boston Consulting Group forecasts that in response, those same card issuers will transform the card industry by selling more products to each consumer and moving further into mobile banking. The Post also carried an Associated Press article saying credit card debt rose for the first time in two years. It said Moody's Analytics chief economist, Mark Zandi called this "an encouraging sign that households are becoming more confident about the economy and jobs. He also said banks are loosening some lending restrictions put in place after the financial crisis." Read the Washington Post article about rising consumer credit card debt here.