May 27, 2009
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CARD Act of 2009, Pt.4
Accountability.The new CARD Act will provide accountability of credit card companies and regulators whose job it is to prevent unfair practices against consumers by:
· Requiring public posting of credit card contracts on the internet written with a standard set of language that will be easily understood for all consumers. This will allow regulators and consumer advocates total exposure to credit card terms. Such exposure will give them the opportunity to monitor changes in terms and evaluate whether they are fair and adequate.
· Holding regulators accountable to enforcing the law to the fullest extent. The Act mandates that regulators report to Congress on a yearly basis regarding their activities and actions taken in enforcing the law and protecting credit card consumers.
· Holding credit card regulators accountable in keeping protections current by soliciting public input on current card market trends and consumer protection. Regulators are required to evaluate on a biennial basis card protection to determine what if any new regulations as well as updated disclosure statements are warranted. Regulators will also be required to update and publish new rules if their research findings warrant any such necessary changes.
· An increase in penalties: Regulators are required to assess stiff penalties to any credit card lender that violates the Act’s restrictions. The penalties will exceed those imposed under current law. Such stiff penalties should serve to deter violations from the beginning.
The new Card Act places stricter guidelines for credit card marketing strategies aimed at young adults and college students. The Act requires that lenders provide full disclosure to students. It also places strict limitations on pursuing and targeting college students specifically.
The new CARD Act contains some of the most sweeping changes in the credit card industry in decades. These universal policies will be instituted to end the unfair marketing tactics of hidden fees that have intentionally clouded financial terms and resulted in sending millions of Americans further into debt.