A federal law known as the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 was created to safeguard cardholders from unfair lending practises by card issuers. The main objectives of this law, also referred to as the CARD Act, are to decrease surprise fees and enhance the disclosure of charges and penalties.
The Credit Card Accountability, Responsibility, and Disclosure Act was passed by the US Congress in May 2009, and shortly after that, President Barack Obama signed it into law. It became active in 2010. The CARD Act was created to safeguard consumers from the unethical tactics of credit card issuers, building on the Truth in Lending Act (TILA). It intends to reduce or eliminate some credit card costs, lessen the manipulation of younger clients, and provide all users more information about fees.
Prior to the act's passage, the language in credit card agreements was frequently extremely cryptic and challenging to read; crucial terms were buried beneath mountains of legalese, and the information provided varied between different issuers, making it challenging for customers to compare products. Both in the initial card agreements and monthly statements, the language, terms, and disclosure of penalties and fees are now much more transparent thanks to the act.
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