Annual Revenue Loss of $10 Billion - New Credit Card Regulations Will Have an Impact on the Asset Management and Fiduciary Business - Are You Prepared?

According to a study by the law firm of Morrison & Foerster the new credit card regulations could cost the banking industry more than $10 billion annually. The interest and fees associated with credit cards have created enormous revenue flows for the banking industry – this will all cease in 2010. New regulations issued today will prohibit the following:

• Placing unfair time constraints on payments. A payment could not be deemed late unless the borrower is given a reasonable period of time, such as 21 days, to pay.
• Placing too-high fees for exceeding the credit limit solely because of a hold placed on the account.
• Unfairly computing balances in a computing tactic known as double-cycle billing.
• Unfairly adding security deposits and fees for issuing credit or making it available.
• Making deceptive offers of credit.

How will this loss of annual revenue be made up? Will your Asset Management and Fiduciary activities step up and assist in generating optimum risk adjusted revenue? Several revenue opportunities exist within your existing portfolio of accounts. The time for action is now.