The Credit Card Accountability Responsibility and Disclosure Act of 2009: Rates and Fees
With the economy in shambles by the end of 2008, it was clear that something had to be done about credit card companies imposing unfair rate hikes and fees in order to recuperate some of their losses. Credit card companies were charging families more in order to cover for the increasing rate of credit defaults and at the same time were negotiating for bailout money from the federal government to soften the blow of the weak economy. Taxpayers were expected to shoulder the burden of others not only once, but twice (Kranish). Americans were outraged that these companies could charge consumers higher rates without prior notice and as they received bills with climbing balances, lawmakers took it upon themselves to ensure that consumer protections were put in place. Legislation was met with widespread bipartisan support but those against the reform were mainly the banks that stood to lose profits with the changes. The Credit Card Accountability Responsibility and Disclosure Act of 2009 (the Credit CARD Act) was born out of frustration, outrage, and a need to rein in credit card companies accused of predatory lending practices.
