What is the Credit Card Accountability Responsibility and Disclosure Act?

The Credit Card Accountability Responsibility and Disclosure Act (CARD Act) is a federal law that was passed in 2009 in regards to banking law in Washington and across the United States. The act is designed to protect consumers by expanding disclosure requirements, limiting rate hikes and providing more consumer-friendly card terms. The CARD Act addresses many of the issues that affect credit card users in Washington state. It requires lenders to provide clear information on their credit card policies, including fees and Annual Percentage Rates (APRs). It also limits fees to a certain percentage of the credit card balance and prohibits rate increases unless certain conditions are met. The act also protects minors under 21 years of age by requiring them to have an adult co-signer in order to obtain a credit card. The CARD Act also requires regular credit card statements be mailed at least 21 days before the due date. Additionally, payment due dates must be the same each month and must fall on the same day of the week or month. Finally, it allows customers to close an account without penalty if they have gone six months without being late on payments. Overall, the CARD Act is an important law that provides Washington consumers with greater protection. It helps ensure that customers are well informed about their credit cards and have the ability to make financially responsible decisions.

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What is the Credit Card Accountability Responsibility and Disclosure Act?

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