Home > 2011 > Credit Cards > For the CARD Act’s First Birthday, Controversy Continues

For the CARD Act’s First Birthday, Controversy Continues

Advertiser Disclosure Comments 1 Comment

Is It Working?

The CARD Act required credit card issuers to make their card descriptions less confusing, so that consumers can better understand what they’re actually getting. Our own Gerri Detweiler found that the act may have helped a little in this regard but not by much, findings backed up by a report by the Center for Responsible Lending.

There’s also some confusion over whether the CARD Act is effective at keeping credit card marketers off college campuses. Reporting by Credit.com’s Farnoosh Torabi found that while fewer pitchmen may be on campus this year, some may still be marketing in violation of the law.

[Related: What the Credit CARD Act Means for the Under 21-Crowd]

Who Should Enforce It?

Finally, the last big fight on the CARD Act’s first birthday is whom should enforce it. Under the Dodd-Frank law, the new Consumer Financial Protection Bureau has the power to enforce the act.

But Republicans and executives at large banks and financial services are trying to change that. They hope to limit the bureau’s power by cutting its budget and forcing the bureau to request its budget from Congress every two years. They also are looking for different ways to rewrite Dodd-Frank to limit the bureau’s enforcement authority.

“Since this new government bureau has virtually unlimited powers over a huge part of our economy, accountability demands that Congress exercise appropriate oversight,” Spencer Bachus (R – Ala), chairman of the House Financial Services Committee, said recently.

Elizabeth Warren, who’s in charge of setting up the new bureau, fought back in recent comments to Consumers Union.

“Families can and should be proud of their new watchdog, but they would be wrong if they take its future security and independence for granted,” she said.

Pages: 1 2

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.

  • Lauren

    You seem to forget that prior to the enactment of the CARD act, interest rates skyrocketed, credit limits were lowered, and bank canceled many credit card accounts. A study should encompass a two-year time period prior to the CARD act enactment and two years post the enactment to get a good sense of whether people are hurting or not.

  • Pingback: 6 Surprising Reasons to Be Thankful for Credit Cards | Credit.com News + Advice()

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.