How The Credit CARD Act Is Helping Consumers Today With Credit Cards

In 2009, the Credit Card Accountability Responsibility and Disclosurehelping hand Act of 2009 (the “Credit CARD Act”) was created. It is a federal statute that the United States Congress passed and signed under Pres. Obama. The act was designed to provide credit card reform and establish transparent practices that are fair to consumers that use credit cards. In this article, we will present the many ways that the Credit CARD Act has been beneficial for consumers.

The Purpose of the Credit CARD Act

In an attempt to control the many unscrupulous practices that some credit card companies were imposing upon those that used their cards, this federal statute was designed to tackle these issues. Its primary purpose was to limit the ways in which credit card companies could charge consumers certain fees. Although it does not control fee settings, recaps, or even price controls, it has done quite a bit to make this situation much better.

What Are the Positive Benefits of the Credit CARD Act of 2009

After President Obama signed this on May 22, 2009, several positive changes have been made. It significantly reduced the way that many credit card companies were able to increase existing interest rates on the cards for existing customers. It also dramatically reduced the amount of charges that could be placed upon consumers that had problems paying their bills a.k.a. late fees. And finally, over limit fees were almost entirely eliminated, clearly showing that this act had done quite a bit of positive work. Even though this would seem to be very positive in regard to how credit cards have been affected, there are still some issues that consumers are still facing which this act did not provide a remedy for.

Criticisms of the Credit CARD Act

Despite all of these positive changes, the act did not actually positively affect all existing credit card contracts that existed at that point. What was also seen was the increase of interest rates by many credit card companies to compensate for the fee reductions, and also limit the credit availability that most consumers have access to. Even though these are valid points of criticism, the positives far outweigh the negatives in regard to what this act has accomplished.

If you have ever had an overdraft fee that was 10 times the amount that you charge, or if you are charged an exorbitant amount for being late by just a couple days, you now know that these fees are a thing of the past as a result of the Credit Card Accountability Responsibility and Disclosure Act of 2009, a federal statute that is certainly doing its best to help consumers in regard to credit cards today. If you would like more information on how this act has been beneficial for consumers in the United States, or how it might affect the way that you use your credit cards in today’s economy, you can find out more information by visiting our website today.

 

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Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

4 Comments
  1. I heard that several credit card institutions were planning to roll out a fee system, in which they’d charge a membership fee if the credit card holder didn’t spend a certain amount of money in one year and if the card wasn’t used often enough. I don’t know how much of it is true, but if one does it, I’m sure others will follow. All I know is the banks will come up with new ways to take more of our money, one way or another.

  2. The CARD act was a good change no matter how you look at it. I know that it could have been better, but even so I was surprised Obama was able to push through such bill, when the country’s so heavily influenced by the banking cartel. I know personally people who have been unfairly screwed by credit card issuers and had changes like this been implemented long ago, perhaps there would not have been so many victims of unscrupulous practices.

  3. Credit card act could have been better, but if the question is whether it was beneficial or not to the consumers, then the answer is absolutely yes. Credit availability was already diminished even before the discussion of Credit Card Act was in place, so I don’t even consider that a side effect of this Act. Credit card companies have since raised all their fees and they’ve also reduced member benefits to make up for their loss of profits, so it’s not like they’re losing anything. Credit Card Act stops them from thieving us on a broad daylights, so it was a step towards the right direction.

    • The Credit CARD Act is a great help to consumers. With or without Credit CARD Act, there’s is nothing to worry if everyone manages their finances carefully. If bills are paid on time, bank will not get anything from you. In the end you are still the winner.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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