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CARD act does not add to customers woes

Friday, March 11, 2011

It is one year since the CARD Act came into effect. Moreover, the good news is that, unlike what most people presume, this act has done more good than bad for the people. The increase in the transparency of the entire credit card industry has helped customers understand their cards better, and manage their finances wisely. This act also improved the communication between credit card lenders, and card holders and eliminated the ambiguity in certain rules on using credit cards.

The benefit of the CARD Act is hardly debatable. Card holders now have a clear understanding of the various fees associated with their credit cards, and are aware of their responsibility in ensuring they use their cards wisely. The implementation of this act has proven to be a blessing to credit card lenders, who have been honest in all their transactions because the act has helped people segregate the good lenders from the unscrupulous ones. Richard Fairbank, the Chief Executive of Capital One, during the last quarter of last year said that the implementation of the CARD Act has led to the formation of a level playing field for issuers.

However, there are some debates that still persist over the credit availability and interest rates on credit cards. There are many people who feel that this act has led to the increase in interest rates by the issuers in order to make up for their loss of revenue in other areas. There are studies that are currently being conducted by various organizations to study the impact and arrive at a conclusion.