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

The Credit Card Accountability Responsibility and Disclosure Act of 2009 (the CARD Act) was enacted into law in Washington and is meant to protect consumers from unfair credit card practices. The CARD Act establishes certain regulations to ensure that credit card issuers are more transparent in their practices. For example, the CARD Act requires credit card issuers to give consumers 45 days of advanced notice before they can make any significant changes to their terms and conditions, such as an increase in interest rates. This allows consumers to plan, or look for a different card if they do not agree with the changes. The CARD Act also requires that credit card issuers disclose information about the cost of their cards such as the APR, fees, and penalty rates, in a clear and concise manner. This allows consumers to easily compare the different features of the various cards available and make an educated decision on which card is right for them. The CARD Act also puts limits on the interest rate increases a credit card issuer may impose. They must wait until 12 months after the account is opened before they can raise the rates and must only raise them in certain circumstances, such as if the consumer misses payments or if the rate was an introductory rate that has expired. The CARD Act also holds young consumers to higher standards. Consumers under the age of 21 must either have an adult to sign for them or prove that they have the ability to make the payments. The CARD Act is an important piece of legislation that ensures credit card issuers are transparent in their practices and that consumers are not taken advantage of. It provides a level of protection and can help consumers make informed decisions about their credit cards.

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

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