January 8, 2010
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A Global Journey, Pt.3
Countries learning from their failures.After efforts failed in the U.S., consumer outrage over escalating abuse by credit card companies sent lawmakers back to the drawing board. A changing political environment with the election of a new President and an ensuing national battle brought about the passing of the Credit Card Accountability, Responsibility, and Disclosure ACT 2009. The act was signed into law by President Barack Obama and with the exception of a few minor provisions which became effective in August; the act becomes effective on February 22, 2010. While lawmakers intended the nine month wait period as a transitional time to allow credit card companies the opportunity to prepare by rewriting and printing new contract terms and conditions, lenders took the time to get a jump on the law. Lenders not only continued with the abusive practices, but they devised new methods and stepped up their predatory activities. As a result, U.S. lawmakers find themselves in yet another battle fighting against these increased activities.
Canada: In September of 2009, Canadian lawmakers passed credit card reform similar to the U.S. Credit CARD ACT. When Canada's Finance Minister, Jim Flaherty announced the passing of new card regulations, he said the law is aimed at increasing transparency and provide greater clarity in the terms and conditions of card contracts. Unlike the U.S. law which gave lenders nine months to prepare, the Canadian law became effective January 1, 2010, giving them three months notice.
Australia: The National Australia Bank, the largest bank issuing credit cards in the country, took matters into their own hands. In 2009 the prominent bank reduced its card late fee to a low flat $5 from a previous $30. The bank also did away with the monthly service fee on a select number of accounts. Consumer checking accounts were also given a break when the bank eliminated the $30 overdraft fee.