The CEO of American Express Kenneth Chenault explained that there is a new law that would limit custumers from sweeping their cards. He said this is a situation of significant importance since it would totally affect the card issuers and reduce the flow of credit to customers. Therefore, the company would probably loss money since the law has more negative effects than positive as explained Kenneth. But, an relieve is that American Express would be hurt less than their competitors since 80 percent of AMEX revenues are generated from fees. The White House said President Barack Obama would sign the bill into law on Friday. Card issuers say the legislation could raise costs and reduce perks, including for creditworthy customers whom the legislation is intended to help.
Friday, February 3, 2012
New Card law may reduce credit
The CEO of American Express Kenneth Chenault explained that there is a new law that would limit custumers from sweeping their cards. He said this is a situation of significant importance since it would totally affect the card issuers and reduce the flow of credit to customers. Therefore, the company would probably loss money since the law has more negative effects than positive as explained Kenneth. But, an relieve is that American Express would be hurt less than their competitors since 80 percent of AMEX revenues are generated from fees. The White House said President Barack Obama would sign the bill into law on Friday. Card issuers say the legislation could raise costs and reduce perks, including for creditworthy customers whom the legislation is intended to help.
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Good application Robersis.
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