• 18
  • February
    2011

Last February, the Credit Card Accountability, Responsibility and Disclosure Act of 2009 went into effect. A recent study done by a private lending watchdog group found that the new rules for credit card companies voted into law by the U.S. Congress a year ago have not hurt borrowers.

Under the new rules, credit card companies are making usage and annual fees clearly visible upfront when soliciting customers. The Credit CARD Act of 2009 requires credit card companies to notify consumers 45 days before a rate increase or a change to penalty fees. Credit card companies are also required to disclose to consumers how long it will take to pay off their credit card debt if they only pay the minimum balance on their monthly statement.

According to Reuters, the Center for Responsible Lending found that the rules had made it easier for consumers to see the true costs of borrowing money and had not diminished how much credit companies are offering consumers, despite credit card companies' warnings that the rules would make credit cards harder to get and more expensive.

Direct-mail credit card offers have not slowed down. The main change that has happened is that credit card companies are advertising higher interest rates in their credit card offers, which means that companies are being more transparent about what it really costs to use credit cards.  

Source:

New credit card rules not hurting borrowers: study (Reuters)