Nevada Senator Harry Reid today discussed the importance of passing the bipartisan Credit Card Accountability, Responsibility and Disclosure Act (CARD). This legislation will protect Nevada consumers by requiring credit card companies to adhere to new regulations regarding interest rates and fees. The law also calls for greater disclosure and consumer protections.
The CARD Act strengthens oversight of the credit card industry, changing several current practices.
The legislation protects consumers by establishing fair and sensible rules for how and when credit card companies can raise interest rates. Card companies must give 45 days’ notice before increasing rates — and they can no longer increase rates on existing balances. The CARD Act cracks down on abusive fees. For example, consumers no longer will have to pay a fee just to pay a bill. And credit card companies must mail statements 21 days before the bill is due, so cardholders can avoid hefty late fees.
The new CARD Act includes protections from predatory marketers — key for young consumers like college students. The bill also strengthens oversight of the credit card industry to keep it in line.
“In short, this bill cleans up the fine print so consumers can’t get blind-sided by their credit card companies,” Reid said today. “This bill will not only level the playing field and keep the rules consistent from beginning to end – it can also save families thousands of dollars a year.”
For Senator Reid’s remarks about credit card reform made earlier this week, click here.