Find the best credit card offers online.Recently, the Center for Responsible Lending (CRL) released the results of a study they made involving the credit card industry, specifically the effects that the upcoming Credit CARD Act will have on it.
Kenneth J. Clayton, the senior vice president and general counsel for card policy of the American Bankers Association (ABA), has seen fit to respond to a few details in CRL’s study.
According to Clayton, the study made by CRL is correct in stating that the Credit CARD Act, signed into law last May of this year, is indeed a landmark piece of legislation. Because of the Credit CARD Act, credit card companies have had to completely change their business models to respond to the recognized expectations of government policymakers of a new paradigm in credit card lending. Aside from the new credit legislation, credit card companies are also being seriously challenged by the downturn that the economy is currently experiencing.
A more important challenge for credit card companies is to meet their current challenges in such a way that the needs and expectations of American consumers are well served, Clayton says. Credit card companies, at the moment, are busy experimenting and finding new credit card business approaches that will not only comply with the requirements of the Credit CARD Act but will also keep the cost of credit cards beneficial to both American consumers and businesses who rely heavily on credit cards daily, Clayton adds.
The senior v.p. of ABA however disagrees with the suggestion of CFL that the new credit card rules being adopted by the Federal Reserve and the Credit CARD Act itself does not address a number of pricing issues that the report raises. These issues were actually addressed and discussed by policy makers throughout the legislative and regulatory process, says Clayton
Clayton stresses that there is one fact that must not be lost. That is, consumers are actually in charge when it comes to what card product they want to use. Consumers are free to open credit card accounts that they feel will work for them and close card accounts that do not. Consumers also have the option of opting out of any credit card term changes that they do not want. As of August 20, 2009, credit card companies are also required to give card holders 45 days of advance notice for any interest rate changes. Not only that but they must also provide the option to decline to card holders as well.
