What is the Credit Card Accountability Responsibility and Disclosure Act?

The Credit Card Accountability Responsibility and Disclosure Act (CARD Act) was enacted by the United States Congress in 2009 to protect consumers from predatory practices with credit cards. The law was passed in response to the economic downturn of 2008 that resulted in rising consumer debt throughout the country. The CARD Act amended the Federal Truth in Lending Act to provide more specific rules regarding credit card offering and services in Tennessee and across the nation. For instance, it requires lenders to provide consumers with 45-day advance notice of increases in interest rates. It also requires that consumers receive a statement in the mail before the payment due date and limited marketing activities to young adults. The CARD Act also has provisions that protect consumers from unfair consumer debt collection practices. Creditors must provide written validation of debts before they attempt to collect payment. Furthermore, collection attempts must be conducted in a respectful manner, without harassing or abusive language. Overall, the CARD Act has been successful in protecting consumers from deceptive credit practices, although some argue that it has limited consumers’ ability to access credit cards and taken away the incentive for consumers to pay debts. Regardless, the CARD Act has helped establish more secure credit policies for consumers in Tennessee and across the nation.

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What is the Credit Card Accountability Responsibility and Disclosure Act?

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