Credit Card Accountability, Responsibility, and Disclosure Act (CARD)

Credit Card Accountability, Responsibility, and Disclosure Act (CARD)

The Credit Card Accountability Responsibility and Disclosure Act of 2009 or Credit CARD Act of 2009 was passed by the United States Congress and signed by President Barack Obama on May 22, 2009. It is comprehensive credit card reform legislation that aims "...to establish fair and transparent practices relating to the extension of credit under an open end consumer credit plan, and for other purposes."

Key features include:
•    Protections against arbitrary interest rate increases
•    Elimination of penalties on cardholders who pay on time
•    Clarification of due dates
•    Protections from misleading terms
•    Cardholders have right to set limits on their credit
•    Card companies must fairly credit and allocate payments
•    Prevents card companies from imposing excessive fees on cardholders
•    Better Congressional oversight of the credit card industry
•    Limits credit cards to teens

Cry Wolf Quotes

Passing legislation like this will discourage lending. This comes at a particularly bad time when consumers and our economy have already had enough stress to deal with. It's not wise policy to create a consumer credit crunch at the same time that our economy is experiencing a commercial credit crunch.

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Rep. Pete Sessions (R-TX), CreditCards.com.

Dodd’s misbegotten bill would reduce competition and raise costs for the consumer—all so his office can generate press releases that say things like ‘Dodd Fights Card Companies.’ In fact, his fight will end up hurting his own constituents.

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Thomas Brown, Bankstocks.com.

I think that every single company that offers a credit card is reassessing its cost….reassessing what they do and how they do it.

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Marcia Sullivan, director of government relations for Consumer Bankers Association, USA Today.

Legislation likely to result in higher interest rates for consumers is not the answer. [This bill] would broadly constrain the ability of financial institutions to price risk, likely resulting in less access to credit and in higher interest rates for consumers.

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The Bush White House’s statement, CreditCards.com.

Evidence

Backgrounders & Briefs

A Timeline of the CARD Act

An interactive timeline of credit card reform.