What Is Credit Card Act of 2009?

by Garima Sharma

As the name suggests here in this article we would be getting to know about the basics of the Credit Card Act that was passed by UnitedStates Congress and brought into effect by the Obama Administration on May 22, 2009, post his signing of it.

It was aimed to avoid subprime mortgage crisis like situations in the future, that he inherited from previous Bush Administration. It was a federal law that aimed to change the way credit card companies issue cards and thereby protecting consumer rights being its ultimate motive.

Below we will be sharing some of its biggest offerings to credit card owners i.e consumer protections:

  1. Limited Interest Rate Hikes
  2. Limited Universal Default
  3. The right to opt-out
  4. Limited credit to young adults
  5. Clearer due dates and times
  6. Highest interest balances paid first
  7. Limits on Over-Limits Fees
  8. No more double-cycle billing
  9. Subprime cards rules set
  10. Minimum payments disclosure
  11. Late fee restrictions and
  12. Gift cards expiration rules

What it left out?

  • In Spite of being revolutionary in nature, it did leave some loopholes unplugged. Credit Card companies were free to raise interest rates on any future purchases and that too without any upper cap. Corporate and Business Cards were not offered protection under the CARD act.
  • Credit Card accounts that are variable APRs based (a majority of them are in the present situation), on them, interest rates can be increased proportionately to the increase in prime rates.
  • Credit card companies still continue the practice of closing the accounts and slashing credit limits all without any prior notice to the respective card owners.


CARD act is a bag of mix offerings that provides partial consumer protection when it comes to the Credit Card Industry. As it has still a lot of major issues left out to be taken care of, to be a  consumer rights protection act in true spirit.


Read More: CREDIT CARDS EASY TO GET: Things That Can Help You Grab A Good Credit Card

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