Credit CARD Act of 2009

By: Xander Arbaugh

Credit CARD Act

  • Formally known as the Credit Card Accountability, Responsibility, and Disclosure Act
  • Passed by President Obama on May 22nd 2009

Enforces that:

  • Credit card companies must give consumers 21 days to pay their bill when sent through the mail
  • Credit card companies must give a 45 day notice before changing interest rates
  • Consumers must be 21 to apply for a credit card (unless the apply with a co-signer)
  • Credit card companies must send out statements that show what the minimum payment is along with what it would be to pay off the bill in 36 months (3 years)
  • Restricts fees on low balance cards with bad credit.

Schumer Box

  • Named after Charles Schumer

Box Includes:

  • Annual fee (if applicable)
  • APR for purchases
  • Other APRs
  • Grace Period
  • Finance calculation method
  • Other transaction fees