 Credit C.A.R.D. Act – Credit Card Accountability, Responsibility and Disclosure Act  The act was passed to protect consumers from unfair credit card billing practices

1. No retroactive rate increases – rates cannot be raised on an existing balance unless a promotional rate has expired, the variable rate increased, or your payment was 60+ days late 2. Advance notice of rate increases – consumers get an increase from 15 to 45 days notice of rate increases

3. Fee Restrictions a. No overlimit fees unless you allow overlimit transactions to be approved (maximum of one fee per billing cycle) b. No charge for paying bill (including phone, internet) 4. Restrictions on issuing cards to young adults – no approval under the age of 21 without independent income or cosigner

5. No double-cycle billing – old practice allowed for finance charges on this and last month’s balance 6. Fairer payment allocation – when paying more than minimum due, additional amount goes to debt with highest interest rate first, then to debt with lesser interest rates

7. More time to pay – consumers get an increase from 14 to 21 days notice of a bill due date 8. Gift card protections – cannot expire for at lease five years and inactivity fees can only be charged after 12 months without use

 Credit card companies made changes in order to offset the loss of revenue that was caused by the act. 1. Overall higher interest rates 2. People under 21 will have a harder time building credit because they won’t take extra measures to get a credit card 3. More and increased fees – annual fees, bank transfer fees, inactivity fees, etc.

4. Increased minimum monthly payments 5. More variable interest rates, less fixed-rates 6. Decrease in rewards and rebates 7. Decrease in credit cards awarded by retail stores