Question

In one paragraph, describe two ways in which the Credit Card Accountability Responsibility and Disclosure Act (CARD Act) helps customers.

Answer 1

Expanding on the Truth in Lending Act (TILA), the act was designed to protect consumers from unfair practices on the part of credit card issuers. It aims to eliminate or lower certain credit card charges, minimize manipulation of younger customers, and provide greater disclosure of fees to all users.

Answer 2

Answer:

One of the most important aims of the CARD Act is to prevent or minimize the manipulation of younger customers such as college students, who are more susceptible to incurring unnecessary debt after being lured by offers of free goods and services. Another important way in which the Act has helped customers is by making the language in credit card agreements easier to understand. Before the Act, card agreements were often so long—and contained so many legal terms—as to be incomprehensible to the average customer. Many customers would prefer to just “sign on the dotted line” rather than try to understand the agreement. They would later find that the card issuer’s fees, penalties, and other charges were higher than what they believed they had agreed to.

Explanation:

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