CCH has issued a new white paper analyzing
the Credit Card Accountability Responsibility and Disclosure Act of
2009, known as
the Credit CARD Act. Credit Card Reform: An Analysis of the Credit CARD Act,
authored by CCH Banking Law Analyst Katalina M. Bianco, JD, examines the
is designed to provide consumers with access to credit on terms that are
more easily understood. CCH is part of Wolters Kluwer Law &
Business, a leading
provider of research information and software solutions in key specialty
legal and business professionals (business.cch.com).
“Against the backdrop of consumers’ increasing credit card debt, the Act
protection for consumers and increases supervision of credit card issuers,
providing greater transparency for both consumers and regulators,” said
“While regulators had taken steps beginning in 2008 to provide for greater
protections, the Act reflects a desire by Congress to ensure that adequate
protections are in place in a more timely way.”
The President is expected to sign the measure into law today. The credit
reforms generally become effective nine months after enactment.
With the U.S. economy in crisis mode, households increasingly have used
cards for routine expenses. Nearly 75 percent of U.S. households use at
general-purpose credit card, and revolving consumer credit in the United
more than quadrupled over the past two decades. As usage of credit cards
so have the variety of fees and practices.
The Act is intended to ban abusive credit card practices, enhance consumer
disclosures and protect underage consumers. It contains a number of
intended to provide protection to consumers from unreasonable interest rate
increases and credit card fees. It also increases supervision of credit card
issuers, enhancing transparency of their practices, and includes
to shield consumers from misleading use of terms in credit card
The Act bans double-cycle billing and retroactive interest rate hikes on
balances, unless payment is at least 60 days late, and requires card
provide 45 days advance notice of any impending rate hike. The measure
credit card marketing to consumers under the age of 21, prohibiting
making pre-screened credit card solicitations to underage individuals
individual expressly opts into receiving the solicitations.
For More Information
Katalina M. Bianco, JD, is a Banking Law Analyst for CCH. Bianco
contributes to the
CCH Federal Banking Law Reporter, CCH Mortgage Compliance Guide and Bank
For a copy of the white paper, visit: Credit Card Reform: An Analysis of
CARD Act or http://business.cch.com/securitiesLaw/news/CreditCard.pdf.
CCH also offers a wealth of special resources related to the financial
the CCH Financial Crisis News Center, financialcrisisupdate.com. The Center
provides the legal community and others with a cohesive and robust
breaking news stories, analysis and links to the full text of source
regulatory actions and serves as a central entry point for CCH banking and
securities law resources related to the crisis.
About Wolters Kluwer Law & Business
Wolters Kluwer Law & Business is a leading provider of research
products and software solutions in key specialty areas for legal and business
professionals, as well as casebooks and study aids for law students. Its major product
lines include Aspen Publishers, CCH, Kluwer Law International and Loislaw . Its
markets include law firms, law schools, corporate counsel and professionals requiring
legal and compliance information. Wolters Kluwer Law & Business, a unit of Wolters
Kluwer, is based in New York City and Riverwoods, Ill.