What is theCard Act of 2009?
The Credit Card Accountability, Responsibility, and Disclosure Act of 2009, also known as the CARD Act of 2009, is a federal law that was created to protect consumers from unfair practices related to the use of credit cards. The CARD Act was enforced in February of 2010, and it applies to all consumer credit card accounts in the state of Florida. The CARD Act of 2009 was designed to provide greater protections for consumers when using credit cards, as well as help them better understand the terms and conditions of their accounts. One of the main goals of the CARD Act was to make sure lenders accurately disclosed credit card terms and conditions, as well as actively monitor transactions and account usage. Additionally, the CARD Act restricted predatory practices such as punishing customers with high interest rates and fees for late payments, as well as setting more limitations on when and how lenders could raise interest rates. The CARD Act also requires lenders to send monthly billing statements to customers at least 21 days before the due date, meaning customers have more time to make payments. Finally, the CARD Act also limits the ability of consumers under 21 years of age to obtain a credit card by requiring them to show proof of income or obtain approval from a parent or guardian. The CARD Act of 2009 was designed to make credit cards less risky for consumers and to help ensure they could make informed decisions when using them.
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