What is the Credit Card Accountability Responsibility and Disclosure Act?

The Credit Card Accountability Responsibility and Disclosure (CARD) Act is a federal law passed in 2009 to protect consumers from unfair or deceptive credit card practices. It applies to credit cards issued to consumers in the United States, including those issued in North Carolina. The CARD Act requires companies to be transparent about credit card fees and interest rates and requires them to notify consumers 45 days in advance of any changes to these terms. It also limits a company’s ability to raise rates on an existing card, requires companies to evaluate a consumer’s ability to pay before issuing a card, and restricts the marketing of credit cards to young people under 21. The act also requires credit cards to provide more detailed information about the cost of credit on periodic statements, and it requires companies to allocate payments to the highest interest balance first. Additionally, the act limits the number of cards that can be issued to a consumer in a single application, sets limits on fees that can be charged, and prohibits companies from offering certain incentives to consumers. These measures are intended to help consumers understand the costs associated with credit cards and make more informed decisions about using them. By making credit card companies more accountable for their practices, the CARD Act protects consumers from unfair practices and helps ensure that credit cards are used responsibly.

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What is the Credit Card Accountability Responsibility and Disclosure Act?

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