Providian continued to operate under the same brand, but as a wholly owned subsidiary. WaMu had 13 million existing customers but no credit card offerings.
Regarding this, how much profit did Providian make a year?
Providian was very profitable until the day I left. In the quarter that I left, despite all the hoopla, I still made over $180 million quarterly profit. … Almost a billion dollars a year. We were making a billion dollars a year.
One may also ask, what role did the OCC play in the Providian case?
What role did the OCC play in the Providian case? Once it became public OCC acted with San Francisco and got a $3 million dollar settlement. 6. Cite some arguments you noted in favor of and against tighter regulation of the credit card industry (interest rates, fees, marketing of cards).
What was Washington Mutual called before?
Washington Mutual
| Washington Mutual logo | |
|---|---|
| Trade name | Washington National Building Loan and Investment Association (1889–1908) Washington Savings and Loan Association (1908–1917) Washington Mutual Savings Bank (1917–1994) Washington Mutual Bank (1994–2008) |
| Headquarters | Seattle, Washington, U.S. |
What court case allowed credit card companies to raise their fees without limit?
Citibank, 517 U.S. 735 (1996), is a U.S. Supreme Court decision upholding a regulation of the Comptroller of Currency which included credit card late fees and other penalties within the definition of interest and thus prevented individual states from limiting them when charged by nationally-chartered banks.
How do credit card companies make money quizlet?
The credit card companies make money off of the interest that the consumers pay. … It fuels the economy by letting consumers purchase more and allowing creditors to make profits allowing them to by more and so on..
What questionable things did Providian do?
In the last two years, Providian has paid more than $400 million to settle charges of unfair business practices. … The deceptive practices that have gotten businesses into trouble — ranging from hidden long-distance fees to unfair late-payment credit card charges — are a matter of public record.
What federal agency supposedly regulate national banks?
Office of the Comptroller of the Currency
Why do the Better Business Bureau of Oakland California and the district attorneys of San Francisco and New York criticize the OCC?
The Better Business Bureau of Oakland, California and the District Attorneys of San Francisco and New York criticize the OCC because the OCC ONLY acknowledged the fact that there was an impending problem with the credit card companies and their outrageous interest rates, but did not pass any law,legislature or any …
For what do credit card holders pay fees Is there a limit on fees?
Over-the-Limit (or “Overlimit”) Fees
If you make purchases that cause your credit card balance to exceed that limit, then you may be hit with an over-the-limit fee. If they do charge, the fees are capped at $29 and $40, just as with the late and returned payment fees.