The Secret History of the Credit Card (full documentary) | FRONTLINE

Summary by Krater

This documentary investigates the history and business practices of the credit card industry, exploring how Supreme Court decisions, aggressive marketing, and rising fees made credit cards a multi-trillion-dollar industry.

From the video

Answers: How did the credit card industry become so profitable and pervasive?

• Credit card industry history
• Usury laws and Marquette decision
• FICO credit scoring
• Credit card debt and bankruptcy

What it concludes

• Credit card companies grew into the most profitable sector of banking by avoiding state usury caps through Supreme Court rulings and imposing universal default rates and heavy fees.
• The Marquette Supreme Court decision allowed banks to export their home state's interest rates nationwide, sparking a race to the bottom among states like South Dakota and Delaware.
• Credit card issuers increasingly rely on fee income, such as late fees and over-limit fees, which have grown faster than interest income and now comprise a massive share of their profits.
• The Office of the Comptroller of the Currency preempted state consumer protection laws, insulating national banks from state enforcement actions.
• Credit card contracts are heavily one-sided, allowing issuers to change interest rates and terms at will with minimal notice, often trapping vulnerable consumers in escalating debt.