THE CREDIT CARD ACCOUNTABILITY RESPONSIBILITY AND DISCLOSURE ACT OF 2009: PROVIDING CONSUMER PROTECTION OR FINANCIAL BUREAUCRACY?

S. Keith Lowe
Jacksonville State University
ABSTRACT
Signed into law by President Barack Obama on May 22, 2009, the Credit Card
Accountability Responsibility and Disclosure (CARD) Act of 2009 ushered in a new era of reform
to the credit card industry. Essentially the first major overhaul of the credit industry since the
Truth in Lending Act of 1968, the CARD Act implemented several reforms considered to be
significant in nature. These reforms include limiting interest rate increases, enhancement of
required disclosures, curbing marketing and credit approval for young consumers, modification of
how payments must be applied to outstanding debt, and addressing fees and related penalties.
This study examines the history of credit and credit cards in the United States, the passage of the
CARD Act and its major changes, unintended consequences that have resulted from the passage of
the CARD Act, and future implications of this federal legislation to the credit card industry.