Credit card holders are now enjoying the fruits of the Credit CARD Act of 2009, according to the findings of recent study conducted by the Pew Health Group’s Safe Credit Card Project. The study was carried out in March 2010 and January 2011 to evaluate how effective the Credit CARD Act of 2009 has been relative to consumers.
Data from the study indicates increased disclosure of interest rates and cash advance rate and declining over-limit penalties and late fees charged by banks has improved the bottom-line for cardholders. If you own a small business credit card, however, don’t be surprised if your penalties, fees and interest rates are significantly higher though. Small business credit cards were excluded from the Credit CARD Act legislation.
Nick Bourke, director of Pew’s Safe Credit Cards Project, said “Pew’s research shows that predictions that the legislation would spark new charges and long-term interest rate growth have not materialized. Whatever increases in advertised interest rates we saw going into 2010 have not continued into 2011. The Act created a new equilibrium where interest rates have flattened, penalty charges have declined and a number of practices deemed ‘unfair or deceptive’ have disappeared.”