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.

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.

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RELATED FAQS
  1. What are some examples of sneaky credit card charges to watch out for?

    Since it took effect in 2010, the Credit CARD Act has outlawed many of the sneaky fees that creditors used to use to pad ... Read Full Answer >>
  2. What is the difference between "closed end credit" and a "line of credit?"

    Depending on the need, an individual or business may take out a form of credit that is either open- or closed-ended. While ... Read Full Answer >>
  3. What is the best way to start to rebuild your credit after a bankruptcy?

    Bankruptcies can be devastating to your credit score. Even worse, a bankruptcy will be listed on your credit report for between ... Read Full Answer >>
  4. What were the primary financial crimes involved in the ZZZZ Best case?

    ZZZZ Best was a company started by Barry Jay Minkow that claimed to be a carpet cleaning business. In fact, it was a Ponzi ... Read Full Answer >>
  5. Can a creditor sue me for a delinquent account?

    If a credit card account becomes delinquent, the creditor can sue the debtor for the balance as soon as the delinquency occurs. ... Read Full Answer >>
  6. How do I transfer my credit card history from one country to another?

    It is currently not possible to transfer your credit history to another country if you relocate. The credit metrics used ... Read Full Answer >>

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