Financial institutions made $2.5 billion less in overlimit fee income in 2012 compared to 2008, according to the Consumer Financial Protection Bureau's review of The Credit Card Accountability Responsibility and Disclosure Act's impact on the credit card market.
"It is clear that the CARD Act has effectively eliminated overlimit fees as a source of cost to consumers and revenue to issuers," said the report released on Wednesday.
"Had the incidence of overlimit fees remained at 2007 levels of 6.4% and had average overlimit fees remained at their 2008 levels, consumers whose accounts are included in the Credit Card Database (CCDB) would have paid an estimated $2.5 billion more in overlimit fees in 2012 than they actually paid," the CFPB said.
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