May 27, 2009
-
CARD Act of 2009, Pt.1
Making it happen.During the bill’s signing ceremony at the White House, President Obama stated that this legislation will provide consumers the “strong and reliable protections they deserve.” Furthermore, President Obama reiterated his commitment to continuing to provide credit card protection for consumers that is “built on transparency, accountability, and mutual responsibility.” In addition to President Obama’s unbending support, passage of the credit card bill did not happen without facing multiple obstacles. The combined efforts of Chairman Frank and Representatives Maloney and Gutierrez in the House, and Chairman Dodd, Ranking Member Shelby and Senator Levin in the Senate brought the bill to victory. President Obama outlined four principles of the new bill that will assist in maintaining long-term credit card reform which includes:
· Strong and reliable protections for consumers.
· All the forms and statements that credit card companies send out must have a standard set of plain language that is in plain sight for consumers' easy access and readability.
· Consumers will have the ability to shop for a credit card that meets their personal needs without fear of being taken advantage of by lenders.
· There will be more accountability in the system, so that those who hurt consumers by engaging in deceptive practices will be held responsible and receive stiffer penalties.
President Obama and the White House Administration acknowledged the efforts of all those individuals who made this legislation possible and said they should be commended for their dedication and commitment in making credit card reform a reality. Many of the predatory actions by lenders have been addressed in the new CARD bill. The new legislation will inhibit lenders from practicing wrongful acts against consumers by banning unfair rate increases, preventing unfair fee traps, requiring plain language disclosures, holding lenders accountable, and protecting students and young adults. The new bill will be effective