Credit Card Accountability, Responsibility and Disclosure<\/u><\/a> (CARD) Act got passed in 2009 by congress to protect cardholders from unfair credit card industry practices.\u00a0<\/p>This CARD Act became part of the Truth in Lending Act, and it is mandatory for credit card issuers to:<\/p>
Disclose rates and fees. Information about pricing must be provided by the card issuer they must inform customers about the interest rates and fees, even before the cardholder opens a new credit card account.<\/p>
Upfront fees limitation. To open a credit card if there are fees, like an annual fee, then it can\u2019t exceed more than 25 % of the initial credit limit.\u00a0<\/p>
For example, if a card has a $1000 credit limit, then the annual fee can\u2019t exceed $250 in the first year.<\/p>
Penalty fees limit- The maximum fee that credit card issuers can charge when cardholders are late with their payments is set by the law.<\/p>
First payments to be completed to the highest-interest debt \u2013 As credit cards have different interest rates for various types of transactions the issuer must apply the excess amount first to the balance with the highest APR.\u00a0<\/p>
Any remaining payment must then be distributed to the rest of the balance in order of the highest APR to the lowest.<\/p>
Limit the cardholder\u2019s liability in event of fraudulent transactions – In case of unauthorized transactions, the credit card holders can\u2019t be held liable for more than $50.<\/p>
The monthly statements should be delivered in a timely manner – The billing statement must be received by cardholders at least 21 days before the payment due date.<\/p>
Billing statements with disclaimers \u2013 All information about repaying the balance, the calculation of the payment, and the duration it would take to pay off the balance if only a minimum payment is made must all be included in the cardholder\u2019s billing statement.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t