What Is the CARD Act?
The CARD Act, also known as the Credit Card Accountability Responsibility and Disclosure Act, was enacted in 2009 in an effort to provide consumers with protections from predatory credit lenders. This post will touch generally on some of the goals and policies of the CARD Act, but individuals with specific questions about the law may choose to discuss their issues with their New York-based bankruptcy and debt relief attorneys.
One of the ways that the CARD Act seeks to protect consumers is through the implementation of control mechanisms over how credit card companies can raise interest rates. Under the law a credit card company may not raise the interest rate on a card for at least one year after a consumer has secured it; exceptions to this rule exist, however, and individuals should review if their cases may fall into one of these exclusions.
Additionally, the CARD Act extends the amount of time that a consumer has to pay his credit card bill before it is considered past due. Under the law a credit card bill must be sent to a consumer at least three weeks before it is set to be due; if a bill is sent to a consumer with a smaller window of time between the bill’s mailing date and its due date then the consumer’s payment cannot be considered delinquent.
In addition to abolishing two-cycle billing and expanding notice requirements about card policies for consumers, the CARD Act limits credit card companies’ abilities to raise interest rates on the existing balances that card holders often carry from month to month. As a result of its implementation the CARD Act has helped many consumers avoid legal problems with their credit card lenders, though many still struggle under significant debt burdens. Attorneys who work in the credit card debt and bankruptcy fields can provide support to those who wish to explore their debt relief options.