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CFPB: CARD Act Has Mixed Results

Aug 27, 2019
Academic scholarship on the Credit Card Accountability Responsibility and Disclosure Act of 2009 suggests it has had a mixed effect on consumer welfare with unintended consequences, the Consumer Financial Protection Bureau said.

In its fourth biennial report on the state of the credit card market, the CFPB cited academic research indicating the CARD Act's restrictions on increasing annual percentage rates on outstanding balances has incentivized issuers to adjust APRs at account origination, which is beyond the scope of the law.

The CFPB report for 2017-2018 also found that credit cards constitute the largest U.S. consumer lending market by number of users, consumer satisfaction with credit cards remains high, and debt service burdens are near the lowest level in more than a decade.