Home > 2011 > Credit Cards > Credit CARD Act Working, Government Study Finds

Credit CARD Act Working, Government Study Finds

Advertiser Disclosure Comments 0 Comments

Credit CARD Act Working, Government Study FindsA year after it was first passed, the Credit Card Accountability, Responsibility and Disclosure Act has largely been helpful to consumers, according to a report from the new Consumer Financial Protection Bureau. In particular, consumers have seen fees for late payments ease considerably, and those for exceeding credit limits have disappeared almost entirely.

[Related: Are CARD Act Critics in Complete Denial?]

In addition, rate hikes to consumers with existing accounts have also been vastly reduced, the report said. Prior to the passage of the Credit CARD Act, about 15 percent of all balances saw their basic interest rates increase in a given year, but that number has dwindled to just 2 percent in the past year. Further, only one of the nine major credit card lenders surveyed by the CFPB said it regularly reviews rates to find if increases should be made.

[Related: CARD Act’s First Anniversary, Controversy Continues]

Many consumers have successfully reduced the rate at which they fall behind on payments since the passage of the Credit CARD Act as they have become warier of taking on debt in general, and have cut spending as a result.

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

Certain credit cards and other financial products mentioned in this and other articles on Credit.com News & Advice may also be offered through Credit.com product pages, and Credit.com will be compensated if our users apply for and ultimately sign up for any of these cards or products. However, this relationship does not result in any preferential editorial treatment.