This past week, the Credit Card Accountability, Responsibility and Disclosure Act went into full effect. The new legislation was created to provide more transparency and protection for consumers against credit card issuers. As the last leg of the act swept across the country on August 22, President Barack Obama praised legislators while on vacation in Martha’s Vineyard, according to Politico.
“In the wake of a terrible recession, these reforms and this independent consumer watchdog will not only protect consumers, they’ll strengthen our economy as a whole, leveling the playing field for responsible lenders and ensuring that families and small business owners are better able to make financial decisions that work for them,” Obama said in a statement.
The president also noted the creation of the Consumer Financial Protection Bureau, aimed toward making sure credit card issuers remain honest with their customers.
In the past, consumers fell into credit card debt due to a lack of understanding with? regard to terms and conditions. Under the CARD Act, companies are required to make fine print easy to understand. Consumers are advised to read through terms and conditions prior to applying for new credit.