What is the Credit Card Accountability Responsibility and Disclosure Act?

The Credit Card Accountability Responsibility and Disclosure Act is a federal law that was passed in 2009 and is intended to protect consumers from unfair and deceptive practices of credit card issuers. This law requires credit card companies to provide clear disclosures about their credit cards, such as how the annual percentage rate (APR) is determined, when the credit card issuer can increase the rate, and how to dispute billing errors. Additionally, the Credit Card Accountability Responsibility and Disclosure Act imposes limits on fees and other charges associated with credit cards. This law also requires credit card companies to apply payments to the highest interest rate balance first and mandates a 45-day advance notice for changes to any credit card terms. In Texas, the Credit Card Accountability Responsibility and Disclosure Act is interpreted and enforced by the Office of Consumer Credit Commissioner (OCCC). This agency monitors banks, credit unions, and other financial institutions in the State of Texas to make sure they are complying with the law. They also help protect consumers by resolving disputes and providing education and resources about credit card use.

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What is the Credit Card Accountability Responsibility and Disclosure Act?

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