August 06, 2010

• Managing Under New Credit Card Rules, Pt.4
     Accountability for regulators, lenders and cardholders.

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  Lenders will be held more accountable now that the full Act will be in place. Credit card companies and regulators whose job it is to prevent unfair practices against consumers are now required to provide public posting of credit card contracts on the internet written in plain language and plain sight that can be easily understood and accessible for all consumers. This exposure for regulators and consumer advocates will give them the opportunity to monitor changes in credit card terms and evaluate whether they are fair and adequate. It will also hold regulators accountable to enforcing the law to the fullest extent. Regulators are now required to report their activity and the action taken to correct any situation to Congress yearly.

  Regulators are now being held accountable in keeping credit card protections current by soliciting public input on current card market trends and consumer protection activities. They must also evaluate on a biennial basis card protection to determine what if any new regulations are needed to increase credit cardholder protections as well as if any disclosure statement updates are warranted. If regulators find that any changes are necessary, they must publish the new rules that they are easily accessible to everyone and most importantly, to the cardholder.

  Stiffer penalties which exceed previous violations will be accessed if any lender violates any provision of the CARD Act. The law mandates that regulators ensure that these penalties are accessed and collected. This provision is aimed at deterring violations from the beginning and preventing problems from evolving into a major issue. Additionally, new rules place stricter guidelines on credit card marketing strategies aimed at young adults and college students. Individuals under the age of 21 must now have a co-signer if they wish to open an account. Furthermore, the act places strict limitations on pursuing and targeting college students specifically and implements new guidelines for on campus marketing.

  As you can see, credit cardholders have a lot to look forward to. However, it remains the cardholder's responsibility to read and seek out clarification on all the card account's terms and conditions. It also remains the cardholder's responsibility to follow through on their end of the contract. In doing so, they will realize more benefits and fewer fees.
  
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