What is the Credit Card Accountability Responsibility and Disclosure Act of 2009?

The Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) is a federal law that was enacted in California and across the United States to help protect consumers from unfair, deceptive, and abusive credit card practices. The CARD Act includes various provisions that set new rules for credit card issuers when it comes to marketing, application processes, and interest rate and penalty fees. The CARD Act requires credit card issuers to provide clear and concise disclosure of terms and fees for their cards in plain language, rather than small print and “legalese.” This eliminates hidden fees and helps consumers to better understand their credit card contracts. The CARD Act also prohibits credit card companies from increasing interest rates on existing balances unless a cardholder is more than 60 days delinquent. Furthermore, it requires credit card companies to give consumers at least 45 days’ notice before raising rates, and to offer a 45-day period to pay off their existing balance at the old rate. It also restricts interest rate increases on new purchases. The CARD Act also limits fees on new accounts and prohibits charging fees on certain kinds of transactions, such as balance transfers and cash advances. It also restricts the marketing of credit cards to people under the age of 21, unless they have a co-signer or they can demonstrate they have the ability to pay their bills. Overall, the CARD Act is designed to make sure that credit card companies are disclosing the true costs associated with their products and that consumers are protected from unfair and deceptive practices.

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What is the Credit Card Accountability Responsibility and Disclosure Act of 2009?

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