The Credit Card Accountability Responsibility and Disclosure Act that came into effect a little more than a year ago has been a subject of debate right from the time of implementation. While consumers had mixed opinions about this Act, banks and financial institutions did not favor this act much. Financial experts predicted that this act would cause a steep hike in the interest rates and other fees associated with the card. However, all this proved to be unbiased fears which have now been put to rest.
The credit card interest rates that were trending northward consistently prior to the implementation of the act, have now stabilized to a great extent. However, the rates of even the lowest APR credit cards are slightly higher than what they were before this act came into existence.
Changes have been noticed in terms of the fees on credit cards too. Though experts had predicted a steep increase in the fees, these apprehensions proved to be short lived. Most of the invalid fees such as the inactivity fees and foreign transaction fees are now things of the past. The existing fees, including the ones for late payment, have an upper limit which has come as a relief to many consumers.
Though the CARD act has done a lot of good to consumers, it has also made it tough for non-working partners to obtain credit cards. With the banks now taking the individual income into consideration as compared to the overall family income, this task seems to have gotten tougher.