DEFINITION of 'Credit Card Accountability, Responsibility And Disclosure Act Of 2009'
This act was designed to limit the manner in which credit card companies can charge their customers. It prohibits arbitrary increases in interest rates and the application of penalties to customers who make timely payments. The CARD act set forth several other guidelines as well, but does not enact price controls or caps on interest rates.
BREAKING DOWN 'Credit Card Accountability, Responsibility And Disclosure Act Of 2009'
This act is commonly known as the Credit CARD Act of 2009. Enacted on May 22, 2009, the law will become effective on February 22, 2010. Ultimately this legislation will make it easier for consumers to pay off their credit card balances in many ways. CARD was enacted as a response to the rising level of unsecured consumer debt.