06/01/2011 - It’s been two years since the landmark Credit Card Accountability Responsibility and Disclosure Act of 2009 was signed into law, and by all accounts, it’s led to some pretty significant changes in the giant industry grinding away behind those little pieces of plastic.
“The Credit CARD Act was passed in response to unfair practices. I think it’s one of the most important and tremendous pieces of legislation for consumers,” says Ed Mierzwinski, consumer advocate at watchdog group U.S.-PIRG. “It banned the worst credit card practices. We’ve all benefited.”
Other consumer advocacy organizations echo this assessment and even the American Bankers Association came around after initially saying that the law would be harmful to consumers (and, presumably, banks). “I think there have been a lot of positive changes for consumers,” says Nessa Feddis, vice president and senior policy counsel for the ABA. But she also says interest rates are higher on average and some people have a tougher time getting credit.
Read the full article Credit CARD Act Turns Two: Are Consumers Better Off? on Time's Web site.
Pew is no longer active in this line of work, but for more information visit the Safe Credit Cards Project on PewHealth.org.