"Just as we demand credit card users to act responsibly, we demand that credit card companies act responsibly too," he said before signing the Credit Card Accountability, Responsibility and Disclosure Act.” Listed below are the consumer credit card problems and the new C.A.R.D. Act solutions to these problems.

Credit Card Problem:
There are currently Too Many Confusing Terms and Conditions. Credit card disclosures used to be one only page long. Today’s disclosures are often 30 pages long and written in a way that most people can’t understand the conditions.

C.A.R.D. Act Solution:
The C.A.R.D. Act Provides Enhanced Disclosures of Card Terms and Conditions. It requires credit card issuers to give a 45 day notice of any interest rate increase, to provide disclosures upon card renewal when the card terms have changed, and to provide full disclosure in billing statements of payment due dates and applicable late payment penalties.

Credit Card Problem:
There are presently Exorbitant Fees and Interest. Credit card companies take advantage of consumers with many unreasonable fees and interest. They can charge over-limit fees over and over again during one billing cycle. They can charge a fee to pay depending on the payment method (“pay to pay”). And they can even charge interest on fees and not just the outstanding balance.

C.A.R.D. Act Solution:
Credit Card Accountability, Responsibility and Disclosure Act Prohibits Exorbitant and Unnecessary Fees and Rates. It also prohibits credit card companies from charging more than one over-limit fee per billing cycle, and charging a fee to allow a consumer to pay a credit card debt, and (3) charging interest on credit card transaction fees.

Credit Card Problem:
Credit card companies inserted a clause into most contracts that allows them to raise consumers’ rates at any time, for any reason. It was called the “Any Time, Any Reason” Rate Increases.

C.A.R.D. Act Solution:
The C.A.R.D. Act bans “Any-time, Any-reason” increases in credit card interest rates.

Credit Card Problem:
Young people aren’t protected from the predatory practices of credit card companies that run aggressive mailing and marketing campaigns on college campuses.

C.A.R.D. Act Solution:
The C.A.R.D. Act insures adequate safeguards for young people by prohibiting credit card companies from issuing credit cards to people under age of 21 unless they show they can repay the credit extended or complete a certified financial literacy course.

Credit Card Problem:
Credit card companies have been charging interest on debt that was paid on time. This is called “Double Cycle Billing” (e.g., if you have a $1,000 balance and pay $900 toward that balance, you can still be charged interest on the entire $1,000 instead of just the $100 difference that you owe.)

C.A.R.D. Act Solution:
The C.A.R.D. Act Prohibits Double Cycle Billing.

Credit Card Problem:
Credit card companies can increase interest rates and terms for reasons unrelated to a cardholder’s behavior on that card. So if a consumer pays a gas bill late, credit card companies can raise the interest rate on the consumer’s credit card. This is known as “Universal Default”.

C.A.R.D. Act Solution:
The C.A.R.D. Act Prohibits Universal Default.