The amount of credit card debt juggled by a majority of American households has exploded in the past few decades, due to aggressive marketing as well as a host of abusive and deceptive practices. Creditors would increase a cardholder’s interest rate when a single payment was late or if the consumer’s credit score has changed, even if every payment was received on time. Card companies also imposed a host of fees and punitive charges that exacerbated the problems of consumers who had hit hard times.

Despite the serious and growing abuses in credit card practices, there was little regulation of these lenders, due to the sweeping expansion of federal bank preemption. Most credit card lenders are big banks, who are legally permitted to ignore state limits on interest rates, fees, and other lending practices. As a result, abuses by credit card lenders spun out of control, creating enormous hardships for consumers.

The era of credit card deregulation ended in 2009, with the enactment of the Credit Card Accountability, Responsibility, and Disclosures (CARD) Act.  NCLC played a key role in the passage of the Credit CARD Act.  NCLC will continue to advocate on behalf of consumers as regulations are written to implement the Credit CARD Act and new reforms are pushed to stop abuses not addressed by that Act. 

Press Releases

U.S. Supreme Court CompuCredit Corp. v. Greenwood Decision Denies Basic Legal Right to Day in Court, Press Release, (Jan. 10, 2012)

Beyond the Credit CARD Act: Features of a Safer Credit Card, November 2010
Policy Brief and Press Release

Credit CARD Protections Take Effect
Feb. 22 But Loopholes and Abuses Persist
Financial watchdog needed to crack down on evasion, abuse and unfairness.
Press Release and Advice for Consumers
(Feb. 17, 2010)

Credit Card Evasions Rampant
Schemes to Avoid New Laws Rampant Before the Laws Even Go Into Effect, Press Release
(Nov. 20, 2009)

Press Releases Archive

Special Reports

10 Million Americans Unprotected
by Fed Credit Card Rules
New Analysis Shows Fed Rules Still Allow Onerous Rate Hikes For 80 Million Credit Card Accounts Press Release

High-Fee, Low-Credit Predatory
Credit Cards Prey Upon the Poor
Press Release, (Nov. 1, 2007)

Fee-Harvesters: Low-Credit, High-Cost
Cards Bleed Consumers
Report

The Life and Debt Cycle
The Implications of Rising Credit Card Debt Among Older Consumers Report,
Part I and Part II

Litigation

In re: Chase Bank USA, N.A. “Check Loan” Contract Litigation, Master Class Action Complaint

Policy Analysis

Comments on Regulations Implementing $50,000 threshold for transactions exempt from Truth in Lending, Feb. 1, 2011

Violations of the Credit CARD Act
Letters to Office of Comptroller of Currency and Office of Thrift Supervision regarding violations of the Credit CARD Act
(July 7, 2010)

Consumer Groups’ Comments on
Regulations Implementing the Credit
CARD Act of 2009

• January 3, 2011 - Comments on cleanup rules to prevent evasions
• March 14, 2010 –  Comments on Reasonable and Proportional Penalty Fees and Re-Evaluation of Rate Increases
• November 20, 2009 – Comments on CARD Act Regulations.  Cites examples of tactics designed to avoid Credit CARD Act protections
• September 21, 2009 – Comments on Right to Reject Changes and 45 days Notice Requirements

Credit Card Accountability, Responsibility
and Reform Act, S. 414.
Support Letter for Senator Dodd Credit CARD Act

Tax Money and Credit Card Debt

Coalition Letter asking Treasury Secretary Geithner to impose fairness in conditions on the use of our tax money to support the purchase of credit card debt

Policy Analysis Archive

Related Publications

Truth in Lending
2009 5th edition

The Cost of Credit
2009 4th Edition