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CARD Act reaction includes new fees, though it also provides access to consumer credit counseling
By Edith Barlow on Feb 20th, 2010
Though the new stipulations put forward by the Credit Card Accountability, Responsibility and Disclosure Act are supposed to protect consumers, card companies are still finding ways to charge consumers.
According to ABCNews.com, the Credit CARD Act doesn't stop lenders from putting new fees onto accounts. Other reports have noted that card lenders have been adding fees to accounts in order to make up for revenues they stand to lose because of the federal law.
And though card companies may not be able to raise interest rates on existing credit card debt as easily because of the act, they can still do so provided the give consumers the 45 days' notice required by the new regulations.
"Credit card lending is the riskiest type of lending. If restrictions are placed on the ability of the market to price for that risk, then it will place upward pressure on fees," Scott Talbot, with the lobbying group Financial Services Roundtable, told the news website.
Though consumers may be facing new fees because of the Credit CARD Act, the new rules may also put them closer to organizations that can help them pay off what they owe. Billing statements will have to have a toll-free number on them that will put cardholders into contact with an approved consumer credit counseling service.
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