Credit Card Regulation and the CARD Act of 2009: Consumer Protection from Discriminatory Practices
Overview
This paper examines the Credit Card Act of 2009 as the most comprehensive credit regulation in the United States, analyzing how it protects consumers from discriminatory practices by credit card companies. The paper explores specific regulatory provisions including restrictions on interest rate increases, transparency requirements, and limitations on fees, while discussing the pre-CARD Act industry landscape characterized by volatile rates and unfair practices.
What this coursework covers
- Introduction and thesis: CARD Act as comprehensive consumer protection legislation
- Topic selection and refinement: narrowing focus from broad credit regulation to specific CARD Act provisions
- Pre-CARD Act industry conditions: volatile interest rates, retroactive increases, and unfair fee practices
- CARD Act protections: interest rate restrictions, 45-day notification requirements, finance charge calculations, and fee limitations
Preview
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Credit Card Regulation
Credit card regulation in the United States relates to the CARD Act of 2009. President Obama signed the Act into law to protect consumers from discriminatory practices by credit card companies (Jambulapati and Stavins). The federal statute improved credit card terms and conditions transparency, particularly the charges and interest rates incurred. The working thesis for the project the CARD Act with the credit card industry: The Credit CARD Act of 2009 is the most comprehensive credit regulation in the United States since it protects consumers from discriminatory practices by companies.
I chose the topic because it involved an area I have always wanted to explore. I was genuinely interested in how the credit card industry is regulated, mandating further research. After settling on the general topic of credit card regulation, I refined the focus to a manageable by gathering background information. The topic was too broad, and after background reading, I decided to focus on the recent legislation in the credit card industry. I was particularly interested in the role of the CARD Act in regulating credit card companies and protecting consumers from unfair fees.
Other ideas considered during the brainstorming activities concerned interest rates, fees, and the trust between companies and consumers. Before enacting the CARD Act, the industry was characterized by volatile interest rates, unsustainable fees, and low trust between companies and customers.