Research & Analysis
New National Survey: Credit CARD Act A Success, But Plastic Safety Net Persists
A new national survey by the nonprofit research and advocacy group Demos finds that new credit card rules have succeeded as intended, but that many financially strapped Americans continue to rely on credit cards to buy food, prescriptions and other basic necessities. This is fresh evidence that confirms earlier CRL research, which showed that a majority of low- and middle-income families depend on credit cards to pay for basic living expenses or to deal with unexpected financial emergencies like a doctor’s visit. Scroll down to see CRL’s lastest research that shows new credit card rules have made pricing more transparent and curbed many of the industry’s worst practices—those that used tricks and traps to ensnare cardholders in high-cost interest rates and penalty fees—and that predatory credit card pricing was bad for consumers and for credit card companies.
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- CRL tells CFPB the CARD Act Works, Encourages Risk-based Pricing
February 19, 2013
Comments submitted by the Center for Responsible Lending to the Consumer Financial Protection Bureau in response to the Request for Information Regarding Credit Card Market. The CARD Act has made pricing clearer without restricting credit, raising its cost or curbing the ability of card issuers to price for risk. Contrary to curbing risk-based pricing, the CARD Act encourages risk-based pricing.
- The State of Lending: Credit Cards
December 12, 2012
Credit cards are one of the most common purchasing tools used by Americans, and many low- and middle-income households rely on credit cards to pay for basic living costs. In the past, credit card companies took advantage of this reliance on credit cards by engaging in unfair and deceptive practices. But the Credit CARD Act of 2009 has made credit card pricing clearer and banned many deceptive practices without leading to higher interest rates or reduced access to credit
- Are prepaid credit cards helping or hurting consumers?
May 25, 2012
Martin Eakes remarks on prepaid cards before a CFPB field hearing.
- Predatory Credit Card Lending: Unsafe, Unsound for Consumers and Lenders
May 8, 2012
What hurts consumers financially hurts business. Losses in downturns mount faster at banks enagaging in unfair, deceptive practices. High-cost penalty fees, interest rates don’t mitigate risk—as credit card issuers have said—but instead are the risk that causes consumers to default.
- Highlights of the New Credit Card Rules: What They Do and Don’t Do
January 26, 2012
Credit CARD Act of 2009 – Learn what the law does and does not cover.