Consumers are starting to reap benefits two years after the CARD Act took effect, according to the Pew Health Group’s Safe Credit Cards Project, a review of credit card offers by the nation’s 12 largest banks and largest credit card issuers. These institutions represent 90% of all outstanding credit card debt in the United States. The purpose of the latest report was to see how the credit card industry has changed since the passage of the Act and used data collected from March 2010 through January 2011.
According to Nick Bourke, Director of the project, “Pew’s research shows that predictions that the legislation would spark new charges and long-term interest rate growth have not materialized.” Interest has stabilized at reasonable rates of between 12.99% – 20.99%, unchanged from 2010. Overdraft fees have been restructured or eliminated with only 11% of banks charging them and are no longer an automatic penalty; cash advance and other penalties have held firm. Fewer ann