Credit CARD Act of 2009
Encyclopedia
The Credit Card Accountability Responsibility and Disclosure Act of 2009 or Credit CARD Act of 2009 is a federal statute passed by the United States Congress
and signed by President Barack Obama
on May 22, 2009. It is comprehensive credit card reform legislation that aims "...to establish fair and transparent practices relating to the extension of credit under an open end consumer credit plan, and for other purposes." The bill was passed with bipartisan support by both the House of Representatives
and the Senate
.
as in the House of Representatives
by Representative Carolyn Maloney, a Democrat
from New York
and the chair of the House Financial Services Committee's
Subcommittee on Financial Institutions and Consumer Credit
. The bill had passed 312 to 112 but was never given a vote in the Senate.
In the 111th United States Congress
the bill was reintroduced as and on April 30, 2009, the House passed it, with a strong bipartisan basis, with 357 yes votes to 70 no votes. The Senate followed suit and passed an amended version on May 19 with 90 yes votes and 5 no votes. The House passed the amended bill the next day by a vote of 279 to 147 and it was signed into law by President Barack Obama
on May 22, 2009.
The bill went into effect on February 22, 2010, nine months after it was enacted.
(R-Okla) added an unrelated rider
to the bill to prevent the Secretary of the Interior
from enforcing any regulation that would prohibit an individual from possessing a firearm in any unit of the National Park System or the National Wildlife Refuge System. The Senate passed the amendment 67-29.
This amendment overturns a Reagan-era policy prohibiting firearms from being carried in national parks. The George W. Bush administration had attempted to implement a similar policy through the rulemaking process just before leaving office; however the change was struck down by a federal judge. This provision has been heavily criticized by environmentalists, anti-gun groups, and park supporters including the Coalition of National Park Service Retirees, but applauded by gun rights groups.
and the Center for Responsible Lending
revealed that such trends were merely the result of economic pressures typical of a recession and not the law. Actually, according to these studies, historical economic data shows that the interest rate increase and decline in available credit seen during the Great Recession should have been worse considering the widespread unemployment, credit card delinquency and credit card charge-offs.
In a speech on the one-year anniversary of the CARD Act, Special Adviser Elizabeth Warren
said that "much of the [credit card] industry has gone further than the law requires in curbing re-pricing and overlimit fees." However, she said there was still much work to be done, that the Consumer Financial Protection Bureau
's "next challenges will be about further clarifying price and risks and making it easier for consumers to make direct product comparisons."
chair Barney Frank
and Representatives Maxine Waters
, Luis Gutiérrez
, Stephen Lynch
, Keith Ellison
, Steve Cohen
, Chaka Fattah
, Maurice Hinchey
, Jim Langevin, Jerrold Nadler
, Carol Shea-Porter, Hilda Solis
, Peter Welch, Albert Wynn
, Peter DeFazio
, Charles Gonzalez, Gene Taylor
, David Obey, Mazie Hirono
, Debbie Wasserman Schultz
, Nancy Boyda
, John Dingell
, Corrine Brown
, Bennie Thompson
, Alcee Hastings
, Yvette Clark, Jesse Jackson
, Danny Davis
, Kirsten Gillibrand
, Eddie Bernice Johnson
, Diane Watson
, Michael Arcuri, Eliot Engel, John Tierney
, Chris Van Hollen
, George Miller
, Jim Moran
, Anthony Weiner, Neil Abercrombie
, and Jan Schakowsky
.
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
and signed by President Barack Obama
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...
on May 22, 2009. It is comprehensive credit card reform legislation that aims "...to establish fair and transparent practices relating to the extension of credit under an open end consumer credit plan, and for other purposes." The bill was passed with bipartisan support by both the House of Representatives
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...
and the Senate
United States Senate
The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...
.
Introduction and votes
The Credit Cardholders' Bill of Rights was introduced in the 110th Congress110th United States Congress
The One Hundred Tenth United States Congress was the meeting of the legislative branch of the United States federal government, between January 3, 2007, and January 3, 2009, during the last two years of the second term of President George W. Bush. It was composed of the Senate and the House of...
as in the House of Representatives
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...
by Representative Carolyn Maloney, a Democrat
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...
from New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
and the chair of the House Financial Services Committee's
United States House Committee on Financial Services
The United States House Committee on Financial Services is the committee of the United States House of Representatives that oversees the entire financial services industry, including the securities, insurance, banking, and housing industries...
Subcommittee on Financial Institutions and Consumer Credit
United States House Financial Services Subcommittee on Financial Institutions and Consumer Credit
The U.S. House Financial Services Subcommittee on Financial Institutions and Consumer Credit is a subcommittee of the House Committee on Financial Services.-Jurisdiction:...
. The bill had passed 312 to 112 but was never given a vote in the Senate.
In the 111th United States Congress
111th United States Congress
The One Hundred Eleventh United States Congress was the meeting of the legislative branch of the United States federal government from January 3, 2009 until January 3, 2011. It began during the last two weeks of the George W. Bush administration, with the remainder spanning the first two years of...
the bill was reintroduced as and on April 30, 2009, the House passed it, with a strong bipartisan basis, with 357 yes votes to 70 no votes. The Senate followed suit and passed an amended version on May 19 with 90 yes votes and 5 no votes. The House passed the amended bill the next day by a vote of 279 to 147 and it was signed into law by President Barack Obama
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...
on May 22, 2009.
The bill went into effect on February 22, 2010, nine months after it was enacted.
Provisions
The Credit Cardholders' Bill of Rights includes several provisions aimed at limiting how credit card companies can charge consumers, but does not include price controls, rate caps, or fee setting. According to a summary of the bill:Amendment on Guns in National Parks
Gun rights advocates in the Senate, led by Tom CoburnTom Coburn
Thomas Allen "Tom" Coburn, M.D. , is an American politician, medical doctor, and Southern Baptist deacon. A member of the Republican Party, he currently serves as the junior U.S. Senator from Oklahoma. In the Senate, he is known as "Dr. No" for his tendency to place holds on and vote against bills...
(R-Okla) added an unrelated rider
Rider (legislation)
In legislative procedure, a rider is an additional provision added to a bill or other measure under the consideration by a legislature, having little connection with the subject matter of the bill. Riders are usually created as a tactic to pass a controversial provision that would not pass as its...
to the bill to prevent the Secretary of the Interior
United States Secretary of the Interior
The United States Secretary of the Interior is the head of the United States Department of the Interior.The US Department of the Interior should not be confused with the concept of Ministries of the Interior as used in other countries...
from enforcing any regulation that would prohibit an individual from possessing a firearm in any unit of the National Park System or the National Wildlife Refuge System. The Senate passed the amendment 67-29.
This amendment overturns a Reagan-era policy prohibiting firearms from being carried in national parks. The George W. Bush administration had attempted to implement a similar policy through the rulemaking process just before leaving office; however the change was struck down by a federal judge. This provision has been heavily criticized by environmentalists, anti-gun groups, and park supporters including the Coalition of National Park Service Retirees, but applauded by gun rights groups.
Criticism
The act was not expected to affect existing credit card contracts. However, the act that was passed does apply to contracts made in the past, setting an effective date of February 22, 2010, which gave banks time to prepare and notify their customers. While it is a common criticism that the CARD Act led banks to raise interest rates and limit credit availability in response to its passage, studies by CardHub.comCardHub.com
CardHub.com is a credit card comparison website owned and operated by Evolution Finance, Inc., a personal finance company founded in 2008 and based in Arlington, Virginia in the United States....
and the Center for Responsible Lending
Center for Responsible Lending
The Center for Responsible Lending is a nonprofit organization non-partisan research and policy group based in Durham, North Carolina and with offices in Washington DC and Oakland, Calif. Its purpose is to educate the public about financial products and to push for policies that curb predatory...
revealed that such trends were merely the result of economic pressures typical of a recession and not the law. Actually, according to these studies, historical economic data shows that the interest rate increase and decline in available credit seen during the Great Recession should have been worse considering the widespread unemployment, credit card delinquency and credit card charge-offs.
In a speech on the one-year anniversary of the CARD Act, Special Adviser Elizabeth Warren
Elizabeth Warren
Elizabeth Warren is an American bankruptcy expert, policy advocate, Harvard Law School professor, and Democratic Party candidate in the 2012 United States Senate election in Massachusetts. She has written several academic and popular books concerning the American economy and personal finance. She...
said that "much of the [credit card] industry has gone further than the law requires in curbing re-pricing and overlimit fees." However, she said there was still much work to be done, that the Consumer Financial Protection Bureau
United States Consumer Financial Protection Bureau
The United States Consumer Financial Protection Bureau is the federal agency that holds primary responsibility for regulating consumer protection in the United States. On July 17, 2011, President Barack Obama, who supported the establishment of the new agency, chose Richard Cordray, a former...
's "next challenges will be about further clarifying price and risks and making it easier for consumers to make direct product comparisons."
Sponsors and cosponsors
The bill was cosponsored by House Financial Services CommitteeUnited States House Committee on Financial Services
The United States House Committee on Financial Services is the committee of the United States House of Representatives that oversees the entire financial services industry, including the securities, insurance, banking, and housing industries...
chair Barney Frank
Barney Frank
Barney Frank is the U.S. Representative for . A member of the Democratic Party, he is the former chairman of the House Financial Services Committee and is considered the most prominent gay politician in the United States.Born and raised in New Jersey, Frank graduated from Harvard College and...
and Representatives Maxine Waters
Maxine Waters
Maxine Waters is the U.S. Representative for , and previously the 29th district, serving since 1991. She is a member of the Democratic Party....
, Luis Gutiérrez
Luis Gutiérrez
Luis Vicente Gutiérrez is an American politician and the U.S. Representative for , serving since 1993. Gutiérrez was the first Latino to be elected to Congress from the Midwest. From 1986 until his election to Congress he served as a member of the Chicago City Council representing the 26th ward...
, Stephen Lynch
Stephen Lynch (politician)
Stephen F. Lynch is the U.S. representative for . He is a member of the Democratic Party who has served since 2001. Lynch was previously an ironworker and lawyer, and served in both chambers of the Massachusetts General Court....
, Keith Ellison
Keith Ellison (politician)
Keith Maurice Ellison is the U.S. Representative for , serving since 2007. He is a member of the Democratic-Farmer-Labor Party. The district centers on Minneapolis. He was re-elected in 2010. Ellison is a co-chair of the Congressional Progressive Caucus.He is the first Muslim to be elected to the...
, Steve Cohen
Steve Cohen
Stephen Ira Cohen is the U.S. Representative for , serving since 2007. He is a member of the Democratic Party. Tennessee's 9th district includes almost three-fourths of Memphis. Cohen is Tennessee's first Jewish congressman....
, Chaka Fattah
Chaka Fattah
Chaka Fattah is the U.S. representative for , serving since 1995. He is a member of the Democratic Party...
, Maurice Hinchey
Maurice Hinchey
Maurice Dunlea Hinchey , is the U.S. Representative for , serving since 1993. He is a member of the Democratic Party...
, Jim Langevin, Jerrold Nadler
Jerrold Nadler
Jerrold Lewis "Jerry" Nadler is the U.S. Representative for , serving since 1992. He is a member of the Democratic Party.The district includes the west side of Manhattan from the Upper West Side down to Battery Park, including the site where the World Trade Center stood...
, Carol Shea-Porter, Hilda Solis
Hilda Solis
Hilda Lucia Solis is the 25th United States Secretary of Labor, serving in the Obama administration. She is a member of the Democratic Party and served in the United States House of Representatives from 2001 to 2009, representing the 31st and 32nd congressional districts of California that include...
, Peter Welch, Albert Wynn
Albert Wynn
Albert Russell "Al" Wynn is a former Democratic member of the United States House of Representatives. He represented the 4th district of Maryland from 1993 to 2008...
, Peter DeFazio
Peter DeFazio
Peter Anthony DeFazio is the U.S. Representative for , serving since 1987. He is a member of the Democratic Party. The district includes Eugene, Springfield, Roseburg and part of Corvallis. As Oregon's most senior member of Congress, he is the dean of Oregon's House of Representatives delegation...
, Charles Gonzalez, Gene Taylor
Gene Taylor
Gary Eugene "Gene" Taylor is the former U.S. Representative for , serving from 1989 until 2011. He was defeated for re-election in 2010 by State Rep. Steven Palazzo, who gained 52% of the vote compared to Taylor's 47%. He left office in January 2011. He is a member of the Democratic Party...
, David Obey, Mazie Hirono
Mazie Hirono
is the U.S. Representative for , serving since 2007. She is a member of the Democratic Party.She was the second Asian immigrant elected lieutenant governor of a state of the United States. She ran against Linda Lingle for governor of Hawaii in 2002, one of the few gubernatorial races in United...
, Debbie Wasserman Schultz
Debbie Wasserman Schultz
Debbie Wasserman Schultz is the U.S. Representative for , serving since 2005. She is a member of the Democratic Party and the Chairwoman of the Democratic National Committee. She previously served in the Florida House of Representatives and the Florida Senate...
, Nancy Boyda
Nancy Boyda
Nancy Boyda is a former Democratic congresswoman representing .On November 4, 2008, Boyda was defeated for re-election by Kansas State Treasurer Lynn Jenkins, after serving one term....
, John Dingell
John Dingell
John David Dingell, Jr. is the U.S. Representative for , serving since 1955 . He is a member of the Democratic Party...
, Corrine Brown
Corrine Brown
Corrine Brown is an U.S. Representative for , serving since 1993. She is a member of the Democratic Party.The district includes parts of Duval, Clay, Putnam, Alachua, Volusia, Marion, Lake, Seminole, and Orange Counties....
, Bennie Thompson
Bennie Thompson
Bennie G. Thompson, is the U.S. Representative for , serving since 1993, and the ranking member of the Committee on Homeland Security since 2011. He is a member of the Democratic Party....
, Alcee Hastings
Alcee Hastings
Alcee Lamar Hastings is the U.S. Representative for , serving since 1993. He is a member of the Democratic Party.-Early life, education and career:...
, Yvette Clark, Jesse Jackson
Jesse Jackson
Jesse Louis Jackson, Sr. is an African-American civil rights activist and Baptist minister. He was a candidate for the Democratic presidential nomination in 1984 and 1988 and served as shadow senator for the District of Columbia from 1991 to 1997. He was the founder of both entities that merged to...
, Danny Davis
Danny K. Davis
For other persons named Danny Davis, please see Daniel Davis .Daniel K. Davis is the U.S. Representative for , serving since 1997. He is a member of the Democratic Party.-Early life, education and career:...
, Kirsten Gillibrand
Kirsten Gillibrand
Kirsten Elizabeth Rutnik Gillibrand is an attorney and the junior United States Senator from the state of New York and a member of the Democratic Party...
, Eddie Bernice Johnson
Eddie Bernice Johnson
Eddie Bernice Johnson is a politician from the state of Texas, currently representing the state's in the United States House of Representatives. She is the first registered nurse elected to the US Congress....
, Diane Watson
Diane Watson
Diane Edith Watson is a former US Representative for , serving from 2003 until 2011. She is a member of the Democratic Party...
, Michael Arcuri, Eliot Engel, John Tierney
John F. Tierney
John F. Tierney is the United States representative for . He is a member of the Democratic Party and an advocate for liberal policies and government oversight. A former attorney, he has served since 1997....
, Chris Van Hollen
Chris Van Hollen
Christopher "Chris" Van Hollen, Jr. is the U.S. Representative for , serving since 2003. He is a member of the Democratic Party...
, George Miller
George Miller
- Arts :*George Miller , Australian film and television screenwriter, film director, and producer*George T. Miller , Australian film and television director and producer*George Bures Miller , Canadian artist...
, Jim Moran
Jim Moran
James Patrick "Jim" Moran, Jr. is the U.S. Representative for , serving since 1991. He is a member of the Democratic Party. The district is located in Northern Virginia and includes the cities of Falls Church and Alexandria, all of Arlington County, and a portion of Fairfax County.Jim Moran was...
, Anthony Weiner, Neil Abercrombie
Neil Abercrombie
Neil Abercrombie is the 7th and current Governor of Hawaii. He was the Democratic U.S. Representative of the First Congressional District of Hawaii which comprises urban Honolulu. He served in Congress from 1986 to 1987 and from 1991 to 2010 when he resigned to successfully run for governor...
, and Jan Schakowsky
Jan Schakowsky
Janice D. "Jan" Schakowsky is the U.S. Representative for , serving since 1999. She is a member of the Democratic Party.The district includes many of Chicago's northern suburbs, including Evanston, Skokie, Wilmette, Park Ridge, Des Plaines and Rosemont...
.