What’s all the buzz about?

The C.A.R.D. Act of 2009

You have probably noticed lately that there has been a barrage of media attention given to the C.A.R.D. (Credit Card Accountability, Responsibility and Disclosure) Act of 2009 signed by President Barack Obama on May 22, 2009. Article after article, news story after news story relentlessly bombards us with of all the changes that are going to take place with credit card laws, procedures and policies for both financial institutions and cardholders to follow.

Whooooooooooooooooooa! Let’s just take a second. Relax, breathe.

First and foremost, the majority of the C.A.R.D. Act will not go into effect until February of 2010. The rule that will take effect sooner is the one in which consumers are to be given 45 days advance notice of major changes in account terms, which will take effect beginning this month. The outline of the other changes can be highlighted within such headings as, Consumer Protection, Enhanced Consumer Disclosures, Protection of Young Consumers and Gift Cards Provisions.

The one thing that I find very interesting is that the C.A.R.D Act includes the words Accountability and Responsibility in its title. When you read the actual law, which by the way, I would only do if you suffer from insomnia and you are looking for some ‘light’ reading, it seems to address the ‘young adult’ population, specifically the college student, as though they solely were the ones being unaccountable and irresponsible. With the overall outstanding credit card balance for the United States hovering around $900 billion, those darn college kids must be running amuck with those credit cards.

I understand that the action has the good intent to get young adults off on the right foot and not stuck with a bunch of debt, but it is not just young adults. It is EVERYONE!

Sure, the Act will definitely make some inroads to further protect consumers, but it gets back to one basic concept – personal responsibility. Personal responsibility begins with reading the disclosures that you are given before you sign your name. Get in the practice of READING everything before you sign anything; it will eliminate a lot of headaches, trust me. I preach it over and over when I speak to young adults. Take personal responsibility for your financial future, spend some time studying your own personal budget, put some figures on paper and begin to live within your means. Understand that if you borrow money you don’t have, you will have to pay it back with interest, which means you will have less money to spend on yourself in the long run each month. Remember the old adage, “if you don’t have the cash to buy it, you probably don’t need it.”

To review the highlights of the C.A.R.D. Act visit the following link: http://www.whitehouse.gov/the_press_office/Fact-Sheet-Reforms-to-Protect-American-Credit-Card-Holders/.

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