What is theCard Act of 2009?
The Card Act of 2009 is an important piece of federal legislation that vastly changed the way credit cards and other consumer credit products are used and regulated in the United States. This law was passed to protect consumers from the deceptive practices that existed in the credit card industry prior to its passing. The Card Act of 2009 restricts many of the practices that used to be commonplace in the credit card industry for Colorado consumers. For example, the law prohibits credit card companies from issuing credit to consumers under the age of 21 unless they have the financial capacity to pay off the debt or they get an adult co-signer. It also prohibits companies from offering incentives like free gifts to potential customers in order to entice them to sign up for the card. Credit card companies must also follow the fair credit billing practice by making sure the fees or interest charges for customer’s accounts are the same for all customers with similar credit profiles. Companies must also disclose the accurate terms of their contracts and provide consumers with 45 days notice of any changes. Lastly, the Card Act of 2009 limits the fees and penalties that credit card companies can impose on consumers. In summary, the Card Act of 2009 is a federal law that provides important consumer protection in the use of credit cards for Colorado consumers. It restricts the practices of credit card companies, ensures fair credit billing practices, and limits the fees and penalties imposed on consumers.
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