May 26, 2009
President Signs Credit Card Accountability Responsibility and Disclosure Act
President Obama signed the Credit Card Accountability Responsibility and Disclosure Act of 2009, H.R. 627, into law on May 22, 2009. [Open Congress]. The Act prohibit a creditor from increasing any annual percentage rate of interest (APR) applicable to the existing balance on an open end consumer credit card account unless specified conditions are met. Most of the reforms will go into effect on Feb. 22, 2010, roughly four months before similar Federal Reserve protections. Also in the Act, but unmentioned in the White House fact sheet: a provision that makes it legal to carry loaded guns in national parks. See also CCH's white paper, Credit Card Reform: An Analysis of the Credit CARD Act. [JH]
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Some creditors take advantage of their consumers by way of increase in annual percentage thus giving the consumers more financial problems to handle. With this new act consumers with this kind of problem can now be protected and abusive creditors punished.
Posted by: Coles Myer | Sep 29, 2009 4:49:45 AM
I was reading about the Credit CARD Act right after Obama signed it into law last month and I was surprised at its level of intricacy. The most important thing at this point is for individuals and families around the country to understand the breakdown of this Act; if we as users aren't well-versed in the details how can we hope that current predatory practices will change?
Luckily, I've found a few sites out there that simplify the Act (here's one example: BillShrink's Credit Card Bill of Rights, in addition to explaining the Bill of Rights, BillShrink also helped me sort through various credit card plans and saved me about $900). Hopefully this is the much-needed impetus for the American economy to turn around!
Posted by: Linda | Jul 1, 2009 1:56:51 PM