Consumers Shun Credit Cards

Another cause for reduced credit-card use is financial reform aimed at protecting consumers, which has decreased the number of new cards given and cut available spending limits, the Javelin report said. Federal legislation that limits overdraft fees, caps on fees banks charge merchants for debit-card transactions and credit-card legislation mean banks have to recoup losses and are only giving cards to the most creditworthy borrowers, the study said.

http://ilene.typepad.com/ourfavorites/2010/09/consumers-shun-credit-cards-credit-card-usage-drops-debit-card-usage-rises.html

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