![Credit card interest rate margins cost consumers extra $25 billion, CFPB says](https://i-invdn-com.investing.com/trkd-images/LYNXNPEK1L0E9_L.jpg)
© Reuters. FILE PHOTO: Visa credit score and debit playing cards are seen on this image illustration taken August 2, 2022. REUTERS/Benoit Tessier/File Photo/File Photo
(Reuters) – The Consumer Financial Protection Bureau (CFPB) stated on Thursday bank card annual share price (APR) margin value was at an all-time excessive, about $25 billion additional every year.
The shopper watchdog stated it had discovered shopper bank card market was managed by a couple of gamers and proof of practices inhibiting prospects’ potential to search out options to costly bank card merchandise.
Major credit score issuers raised the common APR margin by 4.3 share factors over the past 10 years, growing prices for shoppers by billions of {dollars} a 12 months, CFPB stated.
APR represents the annual value of cash borrowed expressed as a share. For bank cards, APR is often simply curiosity.