Happy Anniversary, CARD Act!
Millions of credit card holders are benefiting from the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (CARD Act.) Standards like these don’t just help people; they make our economy more stable and they make life in America better.
The CARD Act protects everyone from unfair credit card practices and sets new standards for safeguarding the value of gift cards. According to a J.D. Power and Associates survey, consumers are happier with their credit cards as a result of the CARD Act’s provisions[i] that rein in unfair late fees and interest rate hikes. The CARD Act is an example of legislation that fosters effective standards and safeguards that put people first and compels wealthy corporate interests to behave responsibly.
As we celebrate the passage of the CARD Act, let’s not forget that standards and safeguards are at the very core of our American way of life. Ours is supposed to be a government of, by, and for the people. We deserve a regulatory system that puts people ahead of profits and ensures that Congress isn't working behind closed doors with corporate lobbyists. We need standards and safeguards so that families who work hard and play by the rules can build a better future for themselves and their children.
The CARD Act Is Safeguarding American Consumers
Among all Americans:
- The percentage of credit card accounts experiencing rate hikes over a one-year period has fallen from 15 to two percent since the passage of the CARD Act.
- From January to November 2010, total late fee payments fell from $901 million to $427 million.
- Consumers paying over-the-limit fees fell from 12 percent to less than one percent.
- 80 percent of consumers noticed that payments are now due on the same day each month; 77 percent have read the new warning about late fees; and 70 percent have seen the new warning about the dangers of making only minimum payments. [ii]
[i] Martha C. White, “The Real Reason We’re Suddenly Happier With Our Credit Cards,” Time Magazine, Aug. 31, 2012, available at http://business.time.com/2012/08/31/the-real-reason-were-suddenly-happier-with-our-credit-cards/#ixzz2E0CKDAaw.