The Credit Card Accountability, Responsibility and Disclosure Act (“CARD Act”) was enacted in 2010 with the goal to protect consumers from longstanding unfair credit card billing practices. When the CARD Act was signed into law, it was clear the credit card industry was in need of substantial reform. Congress concluded that certain practices in the credit card industry were not fair and transparent to consumers, and the CARD Act passed with overwhelming bipartisan support in both the House and the Senate. There had been a growing sense of frustration nationwide at the confusing and perhaps deceptive rate hikes and fees levied by credit card companies for the slightest late payment or no reason at all. As President Obama said when he signed the CARD Act into law, “[w]e don’t begrudge them turning a profit, we just want to make sure that they do so while upholding basic standards of fairness, transparency and accountability.”
The CARD Act covered four important areas for consumers: 1) revised notification requirements for changes of terms and balance information; 2) a grace period on interest rate increases; 3) opt-in requirements for over-the-limit coverage; and 4) new requirements for college students’ credit cards such as requiring a co-signer unless the student can show creditworthiness and not allowing marketing for credit cards on college campuses.
