Credit Card Accountability, Responsibility and Disclosure Act of 2009
  
Congress loves acronyms. So every time Wall Street rips off Americans and Congress reacts to the scam, the government comes up with the clever name of a law that likely won’t solve any problems in the future.
Meet the Credit Card Accountability Responsibility, and Disclosure Act of 2009, or CARD.
This was a law passed under the Obama Administration that aimed to provide “fair and transparent” practices around consumer credit plans. That’s a fancy way of saying that credit companies should provide greater awareness of unexpected fees, and disclose payment penalties.
Keep in mind that consumer credit protection laws had been passed by Congress all the way back in 1968. So this law was just a reaction to the loopholes that the credit organizations had discovered, and ultimately exploited.
This bill requires that lenders have to provide advanced warning of rising interest rates. They also need to tell lendees how long it will take to pay off a loan if they just make minimum payments over time. Credit card companies were also no longer allowed to give away merchandise on college campuses, or to market to young Americans. It also limited expiration dates on gift cards.
Oh, there’s also (for some reason) a rider in the bill that prevents the Secretary of the Interior from prohibiting firearms in national parks. So...there’s that.
Related or Semi-related Video
Finance: What is the Equal Credit Opport...6 Views
Finance a la shmoop what is the Equal Credit Opportunity Act? alright people while the
federal government thinks everyone should have the equal opportunity to get [Men in Federal Government appear]
into debt isn't that sweet of them you know that Uncle Sam well he sure does
have a heart of gold this federal law makes it illegal to discriminate against
people who are applying for financing on pretty much anything legal based on
their age gender marital status religious affiliation ethnic or national
background or public assistance benefits your credit score however well that
still matters sorry just keeping it real
Up Next
What is a line of credit? A line of credit is kind of like a loan. A bank gives a borrower a line of credit, which basically says they can borrow ...
What is the Credit Rating Agency Reform Act Of 2006? As signed by President George W. Bush in 2006, the Credit Rating Agency Reform Act required th...
What are Credit Scores and Worthiness? One of the most ubiquitous ways that digital society now dictates our lives is with business and personal cr...