Connecticut Attorney General's Office
Credit Accountability, Responsibility, and Disclosure (“CARD”) Act
On May 22, 2009, President Obama signed into law the Credit Accountability, Responsibility, and Disclosure (“CARD”) Act. Many of the CARD Act’s consumer protection provisions became effective on February 22, 2010, including provisions eliminating online payment fees, ending two-cycle or double billing, setting forth new requirements for when consumers must receive bills, and implementing rules for when consumers must be notified about changes to their credit card accounts. With these protections, consumers have a stronger shield against credit card abuses such as deceptive language and unjustified interest rate increases on existing balances. Other provisions became effective on August 22, 2010, including provisions that limit the amount of penalty fees for late payments, prohibit inactivity fees, require explanation of rate increases, and mandate review of recent rate increases.
For a brief overview of the changes now in effect and to find more information on the CARD Act, visit the Federal Reserve Bank’s pages on What You Need to Know: New Credit Card Rules.
You can also visit the Federal Reserve Bank’s website on Consumer Credit for credit card holders to find out more information on the CARD Act.
National Consumer Law Center Advice to consumers
Content Last Modified on 3/15/2011 10:38:13 AM