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.
Search Credit Cards - Research & Analysis
Browse Credit Cards - Research & Analysis
- Comments to the OCC: We Oppose Preempting State Consumer Protections on Mortgages, Credit Cards and Other Banking Products
June 28, 2011
CRL joins several groups in opposing proposed rules that would continue the OCC's broad preemption of state laws governing mortgages, credit cards, bank accounts and other banking products.
- Credit Card Clarity: CARD Act Reform Works
June 1, 2011
New credit card rules help consumers by making credit card pricing significantly clearer, new CRL research finds. New rules lower costs by spurring competition, making it harder for issuers to manipulate or arbitrarily raise prices.
- Claridad en las tarjetas de crédito: la ley de reforma CARD funciona
February 16, 2011
Las nuevas regulaciones instituidas por la nueva ley de tarjetas de crédito (CARD por sus siglas en inglés) han resultado en una transparencia significativamente mejor en el costo y precio de las tarjetas de crédito para los consumidores.
- Numbers Game: The True Cost of Credit Card Mail Offers
October 25, 2010
Credit card offers have grown increasingly complex over time. Using a straightforward measure of complexity—the total number of numeric figures that appear on a credit card direct mail offer—this report shows that offers to consumers were 2.5 times more complicated in 2009 than in 1999. In an encouraging sign, a decade-long trend toward complexity has eased since implementation of recent reforms contained in the Credit CARD Act of 2009.
- Analysis of Federal Reserve Research on Behavioral Scoring
August 11, 2010
Analysis of Federal Reserve Research on Behavioral Scoring: On “Report to the Congress on Reductions of Consumer Credit Limits Based on Certain Information as to Experience or Transactions of the Consumer”
- Comment: Potential Violations of the Credit CARD Act
July 7, 2010
CRL and consumer coalition express concerns about credit card issuer potential violations of the the Credit CARD Act of 2009. Problems related to penalty rate disclosures, variable rates, payment allocation and pick-a-rate are cited.
- A Just Fee or Just a Fee?
June 8, 2010
CRL research report finds that even after the new credit card law and credit card reform, credit card late fees still penalize cardholders while increasing profits for credit card banks and credit card companies. Card issuers find multiple ways to charge customers for late payments that are unrelated to changing borrower behavior or covering losses. Late fees are just another way to raise credit card customer costs.
- Capitalizing on New Credit Card Consumer Protections
May 6, 2010
This brief explains the benefits of credit card reform by showing that cardholders paying more than the credit card minimum payment since the passage of the new credit card law, the Credit CARD Act of 2009, decrease their credit card debt sooner, helps them save more, and improve their credit score.
- Comments on Proposed Reg Z Rules Re Implementation of Credit Card Act Provisions
April 14, 2010
CRL and other consumer groups comments to the Federal Reserve on proposed credit card rules related to the implementation of the Credit CARD Act and penalty rates and fee increases.
- Dodging Reform: As Some Credit Card Abuses Are Outlawed, New Ones Proliferate
December 10, 2009
New CRL credit card research identifies hidden and deceptive credit card issuer tricks and traps continue, even after the passage of the Credit CARD Act of 2009 and pending Federal reserve rules. The Dodging Reform report explains why American borrowers continue to experience arbitrary, unfair interest rate hikes and fees through examining issuer practices. These practices manipulate interest rates, pad miscellaneous fees, and include deceptive policies on penalty late payment fees. The federal legislation stopped some of the worst abuses in the industry, but a strong consumer-focused regulator like the CFPA would provide common-sense rules on credit cards and could respond to abuses as they surface.