What is LawBrain?
It's a living legal community making laws accessible and interactive. Click Here to get Started »

Difference between revisions of "Credit CARD Act of 2009"

From lawbrain.com

m
Line 1: Line 1:
The Credit CARD Act is a federal law passed to reform credit card practices by establishing fair practices and transparancy to the extension of credit offered to consumers.<br>
+
The The Credit Card Accountability, Responsibility, and Disclosure (CARD), known as Credit CARD Act, is a federal legislation passed to facilitate [[Credit card reform|credit card reform]] by establishing fair practices and transparency to the extension of credit offered to consumers.
  
{{Stub}}<br>  
+
{{Stub}}<br>
  
 
== Overview  ==
 
== Overview  ==
  
The Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009<ref>http://hdl.loc.gov/loc.uscongress/legislation.111hr627</ref> establishes fair practices and transparancy to the extension of credit offered to consumers in an attempt at federal [[Credit card reform|credit card reform]] in the U.S.  
+
The Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009<ref>http://hdl.loc.gov/loc.uscongress/legislation.111hr627</ref> was passed on May 22, 2009 and came into effect February 22,2010.<ref>http://knowledgebase.findlaw.com/kb/2010/Jan/59137.html</ref> It established fair practices and transparency to the extension of credit offered to consumers in an attempt at federal [[Credit card reform|credit card reform]] in the U.S.
 +
 
 +
== Provisions of CARD Act ==
 +
 
 +
* Credit card issuers must give a minimum of 45 days notice to card holders before raising interest rates or making other significant changes in the terms of their credit agreement. This provision went into effect in August 2009 and was created to allow consumers to cancel their before any interest rate increases go into effect on their accounts.<ref>http://knowledgebase.findlaw.com/kb/2010/Jan/59137.html</ref>
 +
 
 +
* If the credit card company instituted a grace period, the CARD requires that the grace period extend to 3 weeks (21 days) after the statement is mailed.
 +
 
 +
* Limitations on circumstances under which credit card companies can increase interest rates. <ref>http://knowledgebase.findlaw.com/kb/2010/Jan/59137.html</ref>
 +
 
 +
* Establishing regular practices related to payment due date and processing. For example credit card companies cannot change due dates between billing cycles, leading to late fees and must accept payments received by 5:00pm on the due date, rather than an arbitrary time.
 +
 
 +
* No fees for payments made online, by telephone, or by other means. <ref>http://knowledgebase.findlaw.com/kb/2010/Jan/59137.html</ref>
 +
 
 +
* Limitations on solicitation and credit card issuance to individuals under 21 years.
 +
 
 +
* Forbids practice of declining value of credit card gift cards and hidden fees for cards not used within a period of time. Gift cards now have a five-year life span.
 +
 
 +
== Criticisms of CARD Act ==
 +
 
 +
The CARD Act received criticism for lack of any provisions capping interest rates.
 +
 
 +
 
 +
 
 +
 
 +
 
  
 
== References  ==
 
== References  ==
  
<references />  
+
<references />
  
 
== External Links  ==
 
== External Links  ==
  
*[http://hdl.loc.gov/loc.uscongress/legislation.111hr627 Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009]<br>  
+
*[http://hdl.loc.gov/loc.uscongress/legislation.111hr627 Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009]<br>
*[http://www.federalreserve.gov/consumerinfo/wyntk_creditcardrules.htm Federal Reserve: New Credit Card Rules]<br>  
+
*[http://www.federalreserve.gov/consumerinfo/wyntk_creditcardrules.htm Federal Reserve: New Credit Card Rules]<br>
*[http://www.ftc.gov/bcp/menus/consumer/credit/loans.shtm <span class="sectionColor">FTC: Credit Cards  &amp; Consumer Loans</span>]<br>  
+
*[http://www.ftc.gov/bcp/menus/consumer/credit/loans.shtm <span class="sectionColor">FTC: Credit Cards  &amp; Consumer Loans</span>]<br>
*[http://www.defendyourdollars.org/CC%20summary_1.25.2010.pdf New Consumer Credit Card Protections]<br>  
+
*[http://www.defendyourdollars.org/CC%20summary_1.25.2010.pdf New Consumer Credit Card Protections]<br>
*[http://bucks.blogs.nytimes.com/2010/03/03/a-proposal-for-reining-in-credit-card-fees/ A Proposal for Reining In Credit Card Fees]  
+
*[http://bucks.blogs.nytimes.com/2010/03/03/a-proposal-for-reining-in-credit-card-fees/ A Proposal for Reining In Credit Card Fees]
 
*[http://www.defendyourdollars.org/2010/06/fed_issues_new_credit_card_reg.html Fed Issues New Credit Card Regulations to Protect Consumers: New Rules Offer Important Safeguards to Limit Penalty Fees But Don’t Go Far Enough to Roll Back Unfair Interest Rate Hikes ]
 
*[http://www.defendyourdollars.org/2010/06/fed_issues_new_credit_card_reg.html Fed Issues New Credit Card Regulations to Protect Consumers: New Rules Offer Important Safeguards to Limit Penalty Fees But Don’t Go Far Enough to Roll Back Unfair Interest Rate Hikes ]
  
 
== Related Resources on FindLaw  ==
 
== Related Resources on FindLaw  ==
  
*[http://commonlaw.findlaw.com/2009/08/first-part-of-new-credit-card-laws-take-effect.html First Part of New Credit Card Laws Take Effect]  
+
*[http://commonlaw.findlaw.com/2009/08/first-part-of-new-credit-card-laws-take-effect.html First Part of New Credit Card Laws Take Effect]
*[http://commonlaw.findlaw.com/2010/02/card-act-part-2-key-credit-card-reform-takes-effect.html CARD Act Part 2: Key Credit Card Reform Takes Effect]  
+
*[http://commonlaw.findlaw.com/2010/02/card-act-part-2-key-credit-card-reform-takes-effect.html CARD Act Part 2: Key Credit Card Reform Takes Effect]
*[http://commonlaw.findlaw.com/2009/11/card-act-moveup-credit-card-reform-may-come-early.html CARD Act Move-Up: Credit Card Reform May Come Early]  
+
*[http://commonlaw.findlaw.com/2009/11/card-act-moveup-credit-card-reform-may-come-early.html CARD Act Move-Up: Credit Card Reform May Come Early]
*[http://blogs.findlaw.com/free_enterprise/2010/06/federal-reserve-discusses-card-act-credit-card-reform.html Federal Reserve Discusses CARD Act, Credit Card Reform]  
+
*[http://blogs.findlaw.com/free_enterprise/2010/06/federal-reserve-discusses-card-act-credit-card-reform.html Federal Reserve Discusses CARD Act, Credit Card Reform]
*[http://commonlaw.findlaw.com/2009/05/credit-cardholders-bill-of-rights-senate-nixes-15-interest-rate-cap-.html Credit Cardholders' Bill of Rights: Senate Nixes 15% Interest Rate Cap]  
+
*[http://commonlaw.findlaw.com/2009/05/credit-cardholders-bill-of-rights-senate-nixes-15-interest-rate-cap-.html Credit Cardholders' Bill of Rights: Senate Nixes 15% Interest Rate Cap]
*[http://blogs.findlaw.com/free_enterprise/2010/06/business-credit-cards-exempted-from-card-act.html Business Credit Cards Exempted from CARD Act]  
+
*[http://blogs.findlaw.com/free_enterprise/2010/06/business-credit-cards-exempted-from-card-act.html Business Credit Cards Exempted from CARD Act]
*[http://knowledgebase.findlaw.com/kb/2010/Jan/59137.html Credit Card Reform Act of 2009: Does it Help Consumers?]  
+
*[http://knowledgebase.findlaw.com/kb/2010/Jan/59137.html Credit Card Reform Act of 2009: Does it Help Consumers?]
*[http://blogs.findlaw.com/law_and_life/2009/04/credit-card-holders-bill-of-rights-what-it-could-mean-for-you.html Credit Card Holders' Bill of Rights: What it Could Mean for You]  
+
*[http://blogs.findlaw.com/law_and_life/2009/04/credit-card-holders-bill-of-rights-what-it-could-mean-for-you.html Credit Card Holders' Bill of Rights: What it Could Mean for You]
*[http://commonlaw.findlaw.com/2009/04/what-might-a-credit-cardholders-bill-of-rights-look-like.html What Might a Credit Cardholders' Bill of Rights Look Like?]  
+
*[http://commonlaw.findlaw.com/2009/04/what-might-a-credit-cardholders-bill-of-rights-look-like.html What Might a Credit Cardholders' Bill of Rights Look Like?]
 
*[http://knowledgebase.findlaw.com/kb/topics/credit-cards Credit Cards]
 
*[http://knowledgebase.findlaw.com/kb/topics/credit-cards Credit Cards]
  
 
== Related Blogs on FindLaw  ==
 
== Related Blogs on FindLaw  ==
  
<rss>http://search.yahooapis.com/WebSearchService/rss/webSearch.xml?appid=yahoosearchwebrss&query=credit%20CARD%20Act:blogs.findlaw.com|max=5</rss> <br> <!-- Begin Yahoo Web Services HTML Attribution Snippet -->&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; [http://www.developer.yahoo.com Web Services by Yahoo!] <!-- End Yahoo Web Services HTML Attribution Snippet -->  
+
<rss>http://search.yahooapis.com/WebSearchService/rss/webSearch.xml?appid=yahoosearchwebrss&query=credit%20CARD%20Act:blogs.findlaw.com|max=5</rss> <br> <!-- Begin Yahoo Web Services HTML Attribution Snippet -->&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; [http://www.developer.yahoo.com Web Services by Yahoo!] <!-- End Yahoo Web Services HTML Attribution Snippet -->
  
 
== See Also  ==
 
== See Also  ==
  
*[[Credit card reform]]  
+
*[[Credit card reform]]
*[[Fair Credit Reporting Act]]  
+
*[[Fair Credit Reporting Act]]
 
*[[Truth in Lending Act]]
 
*[[Truth in Lending Act]]
  
[[Category:Consumer_Protection_Rights]] [[Category:Contracts]] [[Category:Business_Law]]
+
[[Category:Consumer Protection Rights]]
 +
[[Category:Contracts]]
 +
[[Category:Business Law]]

Revision as of 22:46, 8 July 2010

The The Credit Card Accountability, Responsibility, and Disclosure (CARD), known as Credit CARD Act, is a federal legislation passed to facilitate credit card reform by establishing fair practices and transparency to the extension of credit offered to consumers.

  • This LawBrain entry is a stub. Please help us expand it! Click the 'Edit' tab above to add to this page.

Contents

Overview

The Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009[1] was passed on May 22, 2009 and came into effect February 22,2010.[2] It established fair practices and transparency to the extension of credit offered to consumers in an attempt at federal credit card reform in the U.S.

Provisions of CARD Act

  • Credit card issuers must give a minimum of 45 days notice to card holders before raising interest rates or making other significant changes in the terms of their credit agreement. This provision went into effect in August 2009 and was created to allow consumers to cancel their before any interest rate increases go into effect on their accounts.[3]
  • If the credit card company instituted a grace period, the CARD requires that the grace period extend to 3 weeks (21 days) after the statement is mailed.
  • Limitations on circumstances under which credit card companies can increase interest rates. [4]
  • Establishing regular practices related to payment due date and processing. For example credit card companies cannot change due dates between billing cycles, leading to late fees and must accept payments received by 5:00pm on the due date, rather than an arbitrary time.
  • No fees for payments made online, by telephone, or by other means. [5]
  • Limitations on solicitation and credit card issuance to individuals under 21 years.
  • Forbids practice of declining value of credit card gift cards and hidden fees for cards not used within a period of time. Gift cards now have a five-year life span.

Criticisms of CARD Act

The CARD Act received criticism for lack of any provisions capping interest rates.




References

  1. http://hdl.loc.gov/loc.uscongress/legislation.111hr627
  2. http://knowledgebase.findlaw.com/kb/2010/Jan/59137.html
  3. http://knowledgebase.findlaw.com/kb/2010/Jan/59137.html
  4. http://knowledgebase.findlaw.com/kb/2010/Jan/59137.html
  5. http://knowledgebase.findlaw.com/kb/2010/Jan/59137.html

External Links

Related Resources on FindLaw

Related Blogs on FindLaw

Failed to load RSS feed from http://search.yahooapis.com/WebSearchService/rss/webSearch.xml?appid=yahoosearchwebrss&query=credit%20CARD%20Act:blogs.findlaw.com!

                                                                            Web Services by Yahoo!

See Also

Contributors

FindLaw Michelle, FindLaw Nira