Consumers Seeing Benefits of Credit CARD Act Protections
The MASSPIRG-backed Credit CARD Act improved consumer disclosures, protected college students and young people from unfair marketing and also banned the worst tricks used by credit card companies. In particular, it made it much harder to trick or force consumers into paying late fees, and so, as the story explains: "Customers are also happier when it comes to both annual fees and penalty fees charged by credit card companies. When it comes to penalty fees, “One of the reasons the score is getting better is because fewer customers are having their late fees increased,” says Jim Miller, senior director of J.D. Power’s banking practice."
Over at Time Magazine’s Moneyland page, reporter Martha White says a JD Power survey finds consumers are happier with their credit cards and companies are receiving higher satisfaction scores.
She explains that the Consumer Financial Protection Bureau’s new online credit card complaint database has played an important role.
We certainly agree. I am reminded of the words of Louis Brandeis, later to become an eminent Supreme Court Justice:
“Publicity is justly commended as a remedy for social and industrial diseases. Sunlight is said to be the best of disinfectants; electric light the most efficient policeman.”
Martha White also adds: “To give credit where it’s due in this case, look to the CARD Act, that big piece of financial reform legislation that was passed in the wake of the financial crisis in 2009 over the strenuous objection of the banking industry.”
The MASSPIRG-backed Credit CARD Act improved consumer disclosures, protected college students and young people from unfair marketing and also banned the worst tricks used by credit card companies. In particular, it made it much harder to trick or force consumers into paying late fees, and so, as the story explains:
“Customers are also happier when it comes to both annual fees and penalty fees charged by credit card companies. When it comes to penalty fees, “One of the reasons the score is getting better is because fewer customers are having their late fees increased,” says Jim Miller, senior director of J.D. Power’s banking practice.”
White goes on to quote a banker who admits that while the law may have cut into their profits, it “forced rationality.”
And it was about time for that because the credit card industry, just a few years ago, was just like the rest of the banking industry: out of control.
Co-written with Ed Mierzwinski.
Authors
Deirdre Cummings
Legislative Director, MASSPIRG
Deirdre runs MASSPIRG’s public health, consumer protection and tax and budget programs. Deirdre has led campaigns to improve public records law and require all state spending to be transparent and available on an easy-to-use website, close $400 million in corporate tax loopholes, protect the state’s retail sales laws to reduce overcharges and preserve price disclosures, reduce costs of health insurance and prescription drugs, and more. Deirdre also oversees a Consumer Action Center in Weymouth, Mass., which has mediated 17,000 complaints and returned $4 million to Massachusetts consumers since 1989. Deirdre currently resides in Maynard, Mass., with her family. Over the years she has visited all but one of the state's 351 towns — Gosnold.