The Credit Card Accountability Responsibility and Disclosure Act of 2009, also known as the CARD Act, is a federal law that aims to protect consumers from unfair and deceptive credit card practices. The act includes provisions that require credit card companies to provide clearer and more transparent information about their terms and fees, restricts certain fees and interest rate increases, and provides additional protections for young consumers. Overall, the act seeks to make credit card terms and practices more fair and understandable for consumers.
The CARD Act is a federal law that was enacted in 2009 to protect consumers from unfair practices by credit card companies and to promote transparency in credit card agreements.
Some key provisions of the CARD Act include restrictions on interest rate increases, limitations on fees and penalties, requirements for clear and timely disclosure of terms and conditions, and enhanced protections for young consumers.
No, credit card companies are restricted from increasing interest rates on existing balances unless certain conditions are met, such as the cardholder being more than 60 days late on payments.
Yes, the CARD Act imposes limits on certain fees and penalties, such as late payment fees and over-limit fees. Credit card companies are also required to provide a 45-day notice before increasing certain fees.
Yes, the CARD Act requires credit card companies to provide clear and timely disclosure of terms and conditions, including interest rates, fees, and penalties. This allows consumers to make informed decisions about their credit card usage.
Yes, the CARD Act includes provisions to protect young consumers, such as requiring credit card companies to obtain a co-signer or proof of independent income for individuals under the age of 21.
No, the CARD Act prohibits credit card companies from applying payments to balances with lower interest rates first. This ensures that payments are applied to the highest interest rate balances first, helping consumers pay off their debts more efficiently.
No, credit card companies are required to obtain the cardholder’s consent before increasing the credit limit. This prevents unexpected increases in credit card debt.
No, the CARD Act prohibits credit card companies from charging inactivity fees for unused accounts. This protects consumers from unnecessary fees for accounts they are not actively using.
If you believe a credit card company has violated the CARD Act, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) or consult with a consumer protection attorney to explore your legal options.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 13th April 2024.
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