Read the original ABA Banking Journal article here.
Here is a brief summary of the article:
- Credit card interest rate margins have increased in recent years.
- The CFPB blames anti-competitive pricing behavior for excessive APR margins.
- The widening APR margin is driven by the growth in subprime account volume, the shift to upfront pricing, and the increase in revolving accounts.
- The growth in the credit card market indicates a competitive industry expanding access to affordable and sustainable credit.