Originally Posted By: Art_in_FL

Credit card companies, when they first started out, made the majority of their money on interest. Now they make the majority on penalties and fees.


I AM NOT DEFENDING THESE FEES, I AM DEFENDING THE PRACTICE OF POSTING FACTUAL, RESEARCHED INFORMATION. DON'T GET ALL CRANKY IF IT SEEMS I AM DEFENDING THESE FEES....

It's not true that the CC companies make "most of their money on fees" (and Revenue is NOT profit):

"According to a February report in the Wall Street Journal, revenue from fees increased from $17.1 billion in 2006 to $18.1 billion in 2007. "In 2003, the revenue from fees was $12.8 billion. That represents a 41% increase in fee revenue in just four years," says Bill Hardekopf,CEO of LowCards.com. "During this time of lower interest rates and more defaults, fees provide a steady income for issuers."

"Fees now account for 39% of the revenue for credit card issuers according to RK Hammer, a bank card advisory firm."


I suggest this site as well:

http://www.pbs.org/wgbh/pages/frontline/shows/credit/more/rise.html