ARLINGTON, Va. ( TheStreet) -- It's no secret the CARD Act, which hit a one-year anniversary Feb. 22, increased transparency throughout the credit card industry. The law fostered better communication between issuers and their customers and lowered the disparity that often existed between advertised terms and those consumers were actually held accountable for in using their cards.There is little debate about the benefit of this CARD Act side effect; greater transparency helps everyone. Consumers now have a clearer sense of where $12.1 billion in previously hidden fees originate from and are more conscious of what they must do to effectively manage their credit card accounts. Honest credit card companies no longer face such stiff competition from unscrupulous issuers who, before the law's passage, lured consumers with attractive terms only to surprise them with subsequent fee and interest rate increases. As Capital One ( COF) Chief Executive Richard Fairbank said during the company's fourth-quarter earnings call last year, the act created a level playing field for lenders.
|The interest rate on your credit card may have risen in the past year, but that's not due to the CARD Act, studies show.|
Twitter and become a fan on Facebook.