11.05.2009 / What is the Credit CARD Act?

As many of you have seen in the news, President Obama recently signed the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act on May 22, 2009. The legislation calls for new rules surrounding the practices and disclosures for consumer open-ended lines of credit, which include credit cards as well as secured and unsecured lines of credit.

"Beginning August 20, 2009, consumer line of credit customers will enjoy a longer repayment period."

It sounds nice, but you may ask yourself, "What is this new CARD Act and how could or does it effect me?" To provide some clarity, we’ve put together some frequently asked questions.

Who is impacted by the Credit CARD Act?  

Consumer open-ended credit customers are impacted, which includes credit card and line of credit customers (Secured and Unsecured). The act does not apply to business, agricultural or trust accounts.

When will the Credit CARD Act take effect? 

There are multiple phases of the Credit CARD Act that will go into effect on different dates between now and August 2010. Beginning August 20, 2009, consumer line of credit customers will enjoy a longer repayment period (at least 21 days from the statement mailing date to the payment due date).

Will my repayment period change?

Yes. Credit card and consumer line of credit customers will now enjoy more time to make a payment, at least 21 days from the statement mailing date until their payment is due.

For more information, visit the following web sites: or

Do you have thoughts or comments on this new legislation? Please chime in!  We’d love to hear what you have to say.

Posted at 09:36 AM | Permalink


Thanks for the update but what else does the CARD Act do for consumers? Does it provide assistance for over-leveraged borrowers and limits on bank imposed rate increases and penalty pricing?
Posted by tangerine at 09:11 AM, Sep 30, 2009
While the CARD Act does not specifically address providing assistance to over-leveraged borrowers it will require banks to provide additional information on periodic statements that is designed to give customers additional information related to the costs of credit. The CARD Act will also impose additional limits on how banks increase rates or apply penalty pricing.
Posted by FNBO at 10:30 AM, Oct 05, 2009
My credit card bill issued by another bank (not First National Bank of Omaha) was due Oct. 21st. I paid my bill on line and in full on October 21st. Today I received my new statement and was shocked to find a $39 late fee plus $3 finance charge. When I called to question the fees I was told that my on line payment was processed at 4:05 pm and since the bank closes at 4pm I am being charged the late fee plus finance. I was also told by a manager that there was nothing they could do about it.
Posted by po'd at 07:06 PM, Oct 31, 2009
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