Source:
Informa Research Services
(03/11/2011) The
Credit Card Accountability, Responsibility and Disclosure Act (Credit CARD Act)
has successfully protected consumers from the predatory practices of lenders
that may have led to greater credit
card debt, and has also increased competition between lenders.
Credit
card interest rates have largely gone up since the passage of the Credit CARD Act, but that could
simply be because lenders no longer get to hide revenue-driving rates and fees
from consumers, and instead, must show all costs associated with these accounts,
according to a report from the Detroit News. In addition, these disclosure
requirements may have forced more lenders to depress rates to lower levels than
they would have in the past.
Even
with these changes, consumers should try to shop around for the best credit
card rates available to them by checking the latest online rate
tables.
"I
think high competition among the issuers has restricted the cost add-ons to be
passed to the consumer entirely," Anuj Shahani, a director at Synovate, told the
newspaper.
Many
consumers have successfully reduced their credit card debt as a result of these
regulatory changes, which have also helped to show how much money can be saved
by paying bills responsibly.
Related Articles:
Lenders digging deeper into borrowers' pasts for credit determinations
Banks
winning overdraft fee war, consumers losing billions
Serious
credit card delinquencies fell nationwide
New
consumer finance bureau opens to criticism
Due to CARD Act,
Some Banks Cut Fees
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