Credit Card Accountability, Responsibility And Disclosure Act Of 2009

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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.

INVESTOPEDIA EXPLAINS '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.

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    Secured credit cards can be used just like regular credit cards wherever credit cards are accepted. Secured credit cards ... Read Full Answer >>
  3. Do prepaid Credit Cards have monthly fees?

    While prepaid credit cards differ in their fee structures, some come with fees to purchase the card, activate the card, add ... Read Full Answer >>
  4. How have low interest rates affected lease rates in the automotive sector?

    Low interest rates have contributed substantially to increased lease rates in the automotive sector. In recent years, the ... Read Full Answer >>
  5. How often is interest compounded?

    Interest can be compounded on any given frequency schedule. Common interest compounding time frames are daily, monthly, semi-annually ... Read Full Answer >>
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