A couple of years ago the credit card lenders came under the scanner for charging sky high interest rates and late payment fees from customers. This prompted the legislatures to take action to curb the growing interest rates and save customers from the potential hazards of credit cards. This is when the CARD Act was drafted by the legislature and gained approval from President Obama. This act was implemented in two phases; the first phase in 2009 and the second in 2010. The implementation of this act brought about a lot more transparency in the credit card industry and customers became more aware of what they were paying for.
The credit card companies, on the other hand, were not a happy lot since it impacted the revenue to a great extent. However, there was a loophole in the CARD Act that the banks realized could be used to regain the lost revenue. This particular act was drafted to offer protection to consumer credit cards alone. The small business credit cards were left out of this. Hence, the cards under this segment do not enjoy the protection that other cards have. This has given credit card lenders a free hand in varying the interest rates, late payment fees and other charges on the card without informing the customers beforehand.
Bank of America is the only bank in the United States that has extended the regulations of the CARD Act to cover the small business cards issued by them. The other banks are yet to consider this move and till such time, small business owners are left with no choice but to be careful and updated about the various charges they are paying for on their card.