Card Companies Earnings Could be Sapped by Late Payments

NEW YORK – Credit card company profits could be crimped if oil prices remain near their recent highs long enough to pinch U.S. consumer spending and hamper their ability to pay bills on time, industry analysts said.

“The more prolonged the higher price of oil remains, the more it becomes an issue for consumers and credit card companies,” said Neil Abromavage, analyst at Deutsche Bank Securities Inc. “I don’t want to be alarmist, but clearly it is something that needs to be monitored.”