Premium Essay

Credit Card Act

In: Business and Management

Submitted By gujupeep531
Words 1605
Pages 7
The Credit Card Act President Obama signed the Credit Card Accountability, Responsibility, and Disclosure Act, or the Credit Card Act, on May 22, 2009. The objective of the act is to make credit card policy fairer and more transparent for the consumer to better understand the implications of credit card use. There are a number of young consumers who may have accessed a credit card either in effort to start building their credit, or because their parents got them a credit card, in which case the user does not fully realize the details of owning a credit card, and the implications in long-term financial planning. On average, by the end of 2009 the typical American consumer had around $5,400 in credit card debt (Sidel 1). Any adult user without a background in financing or any tendency to track credit card vendor activities could be susceptible to a wide range of credit card abuses, at least, until the Credit Card Act intended to reduce these issues. New requirements include the following. In §101(a) advance notice prior to a rate increase or any other major changes is necessary. This is important because a lot of people will sign up for a new credit card with zero APR for the first year, then the interest rate spikes up to 22.5 percent. Without being aware of at what point this interest change will occur, a consumer may not plan their payments to the credit card accordingly as they initially desired upon opening the card. With a warning, the consumer can budget better ahead of time. In §171(a) annual fees, percentage rates, or other costs cannot be increased beyond the initial agreement, with few exceptions outlined. This is important for anyone who is charged a fee or whose interest rate increases without their being aware. It also protects those who have to call customer service in complaint of such an action by the creditor. In §102(a)(1)…...

Similar Documents

Premium Essay

Credit Cards

...convenience in everyday life. For example, credit cards, in particular, give consumers the ability to purchase goods or services with little effort. Simply by making a phone call or opening a laptop, a product can be bought and even shipped to the front door just by entering those little raised numbers on the front of the card; just ask my friend Emily! She ordered an enormous new 70in. flat screen TV, without even needing to go into a store. The funny thing is she doesn’t watch or own a TV. Not only did the store allow somebody to fraudulently use her credit card but it also allowed the TV to be shipped to an unauthorized location. That’s the rub! Credit cards may seem great, and they are for certain things, however, there is an obvious security threat when owning one. The temptations for overspending and the high interest rates that credit card companies add create other issues that cause potential problems for consumers as well. First of all, fraud can be a cause for concern when debating whether or not to get a credit card. It is becoming easier for criminals to acquire card numbers without ever even meeting the person they stole it from, and as technology advances, they devise new and devious ways to beat the system. For example, criminals have created ways to steal card numbers with machines that Luchsinger 2 can read a card number just by standing behind a person in line at a coffee shop. There are also reports of stolen card numbers being sold on the......

Words: 704 - Pages: 3

Free Essay

Card Act

...Credit cards have become vital to our economy. They greatly simplify transactions, allow for quick payment, and help a customer build a credit history. But while credit cards have great advantages, they also pose great disadvantages. Credit card companies must make a profit. To do this, these companies have devised many ways to charge extra fees to their customers. Ranging from understandable late fees to seemingly ridiculous inactive fees, credit card companies have found ways to squeeze extra money from customers. In lieu of public outcries, the U.S. Government passed the Credit CARD Act in 2009 (implemented fully in 2010) to stifle many of the ostensibly unethical actions of the credit card companies. In 2011, one year after the act began to be implemented, the beckoning question is ‘Did the Credit CARD Act benefit consumers?’ After research and careful thought, I believe the propositions in the Credit CARD Act did answer many consumer complaints, but there is still work to be done. The first question one might ask is, “What exactly did the Credit CARD Act change?” The simple answer is “many things.” To go in depth would take a while and be complicated. Instead, a simple way to view the new law is that it increased clarity for consumers and set up many consumer credit shields. While we do not have the time to thoroughly examine every proposition, I do, however, want to extract a few of the propositions I feel are important, discuss their benefits and drawbacks from both......

Words: 1661 - Pages: 7

Free Essay

Credit Card

...Northbridge has gradually becoming a bridge between people and safety, and communication, and convenience, which significantly enhance the development of the local economy. This essay will also focus on the different functions of the Northbridge in Australian neighborhood. Generally speaking, one of the most primary function of common sidewalk is to offer pedestrians a pretty safe area where could prevent them from the danger of being hit by a moving vehicle on the street (Lee, Jang, Wang and Namgung, 2009). However, with the development of the Australian economy, most people really keen on the sidewalk with the comfortable and leisure style. In fact, those sidewalks are usually some walkable streets and better measured by how pedestrians act and feel when walking along them. When walking along healthy streets, people could certainly gain the relaxed and comfortable feeling. In the meanwhile, those pedestrians who are in the relaxed sidewalk also could enjoy such walking experience in this environment and feel connected to their surroundings. Furthermore, it is interestingly found by Ehrenfeucht (2009) that as long as the sidewalk cannot meet people’s satisfaction, those people who live in this neighborhood prefer to treat it to health rather than moving away. The Northbridge is relatively typical comfortable sidewalk in Australian neighborhood. In detail, Northbridge is well known for its informal name called "north of line" (Carlsen, 2004). It is a suburb of Perth......

Words: 1387 - Pages: 6

Premium Essay

Credit Card Frauds

...Topic : CREDIT CARD FRAUDS Problem Statement : Analyse the effect of credit card frauds in today’s era of globalization Hyphothesis : Credit card fraud could damage the economy in the long run Research questions : 1)What are the different types of frauds 2)How fraudsters attempt to take advantage of loopholes 3)What are the impact of credit card fraud on card holders, merchants, issuers INTRODUCTION As for in today’s business environment, Credit Card Fraud has became one of the biggest threats to business establishments t. However, to fight the fraud effectively, it is important to first understand the mechanisms of executing a fraud. Credit card fraudsters employ a large number of techniques to commit fraud. In simple terms, Credit Card Fraud is defined as: When an individual uses another individuals’ credit card for personal reasons while the owner of the card and the card issuer are not aware of the fact that the card is being used. Further, the individual using the card has no connection with the cardholder or issuer, and has no intention of either contacting the owner of the card or making repayments for the purchases made. Credit card frauds are committed in the following ways: * An act of criminal deception (mislead with intent) by use of unauthorized account and/or personal information * Illegal or unauthorized use of account for personal gain * Misrepresentation of account information to obtain goods and/or......

Words: 1878 - Pages: 8

Premium Essay

Credit Cards

...Article: Homepage (credit cards) Description: Credit Card is substitute of cash and by having best credit card one can get different benefits. As the world is advancing new technologies are introduced in the market. These technologies are made to make our life easier and simpler. These technologies are also helping in our spending life style. Like nowadays plastic money (credit card) is gaining fame because most of the people don’t want to carry huge amount of money along with them and they prefer credit cards. Credit card is used as a mode of payment which can be used as substitute cash in the trade of commodities. It is a small plastic card, generally 3(1/8) inches by 2(1/8) inches in size, with a small electronic chip given to consumers of the system. The card holds credentials information like an image or signature, and person name to charge for services, the charges for which he will be payable periodically. A credit card is not like debit cards as in debit card money is not deducted from the client’s account after each transaction. In the case of credit cards, the issuers give loan to the punter and the consumer revolves their balance at the cost of having interest charged. Today, automated teller machines (ATMs), bank and Internet computers and store readers are used to interpret the information which is present on the card and are accepted as means of payment in many restaurants, internet businesses, stores, hotels and shopping malls. These cards are issued......

Words: 566 - Pages: 3

Premium Essay

Bimb Marketing Credit Card

...BANK ISLAM BANK BERHAD CREDIT CARD A MARKETING PLAN MOHD HALIM RIDHAUDDIN BIN ABD MANAP ( 2013133609) ABD RAZAK BIN AWAB ( 2013519593 ) NOOR IDAYU BINTI OTHMAN ( 2013191665 ) HAFIZAH BINTI ABD WAHAB ( 201339929) MKT 750 : MARKETING MANAGEMENT GROUP EMBA12JB PM KAMEL TAUFIQ BIN ABDUL GHANI TABLE OF CONTENTS 1. | Executive Summary | | 2. | Company description | | 3. | Strategic focus and plan | | | * Mission | | | * Goals | | | * Competency and Sustainable Competitive Advantage | | | | | 4. | Situation Analysis | | | a) SWOT analysis | | | * Strengths | | | * Weaknesess | | | * Opportunities | | | * Threats | | | | | | b) Market Summary | | | * Market Trends | | | * Market Growth | | | | | | c) Competitor analysis | | | | | | d) Customer analysis | | | | | | e) Company analysis | | | | | 5 | Product – Market Focus | | | a) Marketing objectives | | | b) Target market | | | c) Customer Value Proposition | | | d) Positioning | | | e) SWOT analysis | | | | | 6. | Marketing program | | | a) Marketing mix | | | * Product Strategy | | | * Price Strategy | | | * Promotion Strategy | | | * Place/ distribution Strategy | | | | | 9. | Financial Data and Projections | | | a)Break- even Analysis | | | b)Sales Forecasting | | ...

Words: 5817 - Pages: 24

Premium Essay

Credit Cards

...“Comparative Analysis of Impulsive Buying Behaviour between Youth and Elderly Credit Card Consumers” A research report submitted in partial fulfilment for the degree of Master of Business Administration Submitted By Aditi Bhatt C 02 Anshul Chaudhary C 04 Rohit Kumar C 35 Rohit Nair C 36 Vinika Yadav C 53 Symbiosis Institute of Management Studies Symbiosis International University September 2014 ACKNOWLEDGEMENT We take this opportunity to express our gratitude to the people who have been instrumental in the successful completion of this project. We are extremely thankful to Professor Dr Asha Nagendra, the Guide of this project. She has guided us on this research and correcting various documents and amending them with attention and care. She has taken pain to go through the project and make necessary correction as and when needed at each and every step. We express our thanks to the Director of Symbiosis Institute of Management Studies, Pune for extending its support. We would like to show our greatest appreciation for the support extended to us by the respondents, which was vital for the success of the project. We are also thankful to all the friends, faculties and the respondents whose enthusiastic participation has helped us in our research. TABLE OF CONTENTS Sr. No | Topic |......

Words: 5183 - Pages: 21

Premium Essay

Credit Card Debt

...Venkateshwara FMSC 111 December 11, 2014 Final Paper Introduction Credit Card debt and college student debt are problems that must be addressed now. We are seeing to many people suffer from both since they are misinformed and not educated about either. I got my first credit card when I was 18 years old. My parents taught me to be careful with my card and if I wasn’t they would cut me off immediately. Unfortunately people are now getting credit cards earlier and parents are not teaching kids how to use credit cards correctly. According to a study, “50.9% of students had debt before college” (Jones 2005). This means over half of the people entering college already are in some type of debt. Students must be educated before college so we can alleviate the amount of students in debt. Graduating students are “leaving college with $20,402 in education and credit debt” (Robb and Sharpe 2009). This results in people trying to dig themselves out of debt for their whole life. The average student also has “4.25 cards in their name” (Davidson, 2004). This is part of the reason why students are accumulating so much debt since they don’t know how to properly manage credit cards. This is because students have a low degree of financial literacy. This means that students don’t know the true value of money and as a result spend more than they have. We can see this by the amount students are using their credit cards. Not only are students getting in debt, but it is also having social......

Words: 1804 - Pages: 8

Premium Essay

Credit Card

... CREDIT CARD CONTENT Sl. No | | Page. No | 1 | INTRODUCTION | 1-3 | 2 | CREDIT CARD: WHAT ARE CREDIT CARD | 4-6 | 3 | ADVANTAGES OF CREDIT CARD | 7 | 4 | DISADVANTAGES OF CREDIT CARD | 8 | 5 | CREDIT CARD: PROS AND CON | 9-11 | 6 | HOW YOUR CREDIT CARD IS CHANGING | 11-13 | 7 | HOW TO GET OUT OF CREDIT CARD DEBT | 14 | 8 | CONCLUSION | 14-15 | Credit Cards: Introduction Are you thinking about making a purchase? Among the payment choices tucked away in a consumer's a wallet is the credit card. Its popularity since its debut in the late 1950s has skyrocketed. Many people enjoy the convenience and protections it offers, such as the ability to defer payments and keep records of purchases. However, credit cards can either help to improve your lifestyle by offering convenient payment and helping you build credit, or they can leave you with a pile a of debt - it all depends on how you use them. Problems can be avoided but understanding the terms of the credit card agreement, spending wisely and selecting the appropriate card. Here we take an in-depth look at credit cards and provide useful information about how you can use one to your best advantage. How Credit Cards Built A Plastic Empire :- Credit cards are nearing necessity status in modern life. If you want to rent a video, book......

Words: 7132 - Pages: 29

Premium Essay

Credit Cards

...Final Draft Although there are many advantages of possessing credit cards, most Americans should not use them; because they do not use them properly to where they become liable or subject to overwhelming debt, which could damage their credit history. Personal credit card debt has doubled in the past four years and personal bankruptcies are at the highest ever, and still more Americans are spending money that they do not have. Credit cards allow and encourage individuals to buy more than budgeted, and this is obviously a situation, which is best to avoid. Knowing when it is a bad idea to use a credit card can help you to avoid adding debt to your credit card. It is no doubt that the use of credit cards have eased the rate in which people obtain goods and services, but the use of credit cards have done more damage to the finances of Americans credit card users than good. Credit cards have become a problem for most American credit card users and there are even cases that some Americans have committed suicide because of the heavy debts he or she owes the credit card companies. Should Americans continue using credit cards? The answer is definitely no as the detriment that comes with using credit cards outweighs the benefits. Credit cards are a huge convenience in everyday life, yet most people are irresponsible when using them. The convenience of possessing credit cards increase the risk of overspending because people can convince themselves to spend more than what......

Words: 1136 - Pages: 5

Premium Essay

Credit Card Companies

... Should Credit Card Companies be on campus marketing to College Students? Brandie Olivier Com 1 172 Gennifer Marconette April 13, 2011 Credit Cards are an amazing piece of plastic that can change your whole life in an instant. A case in point Tom Meitner a student at the University Of Wisconsin has a balance of 8,000 dollars in credit card debit still to this day. That’s why growing up it was always said that if you really need to something than pay with cash, Otherwise you really don’t need it. I wish that when I was younger I would have been a lot smarter with the knowledge that I have now have with Credit Cards. I wish I would have used a lot of the advice that I got when I was younger maybe today I wouldn’t be in the debt that I am in now. This is why I feel that Credit Card companies should not be able to go on campus and market there product. Credit Card Companies should not be on campus marking to college student. This idea is case in fact used to teach young kids who were going into adult hood to be wise with money and to not get caught up in the world of plastic. When you are going from High school to College you are at a stage in your life that the credit card companies yearn for. You are at the starting age of adult hood that is able to take on the responsibilities of everyday life. You have an opportunity of going away and leaving home to embark on the new......

Words: 1084 - Pages: 5

Premium Essay

Credit Card

...essay on Credit Card A barometer of the maturity of an economy with a few exceptions is the stage of development reached by its payment systems. Cash in the form of notes and coins makes up just one form of payment system. The development in banking brought about a second phase in payment system, through paper instruments namely cheques and credit transfers. The requirement for greater flexibility and convenience and development of technology has given rise to electronic payments and this is where plastic cards have been provided with. During 1914, a number of oil companies in United States issued the first credit card to their customers for the purchase of gasoline, oil and accessories at the companies' stations. Thereafter, local departmental stores, air travel companies and railway companies also started issuing credit cards. In 1950, the Diners' Club Inc, was the first company to issue an all purpose card. The Franklin National Bank of New York was, in 1951, the first bank in the United States to adopt a credit card plan. Around 1958, the American Express Company and two large banks, the Bank of America and Chase Manhattan entered the credit card field. Some of these companies introduced their cards into United Kingdom, and in 1966 Barclays Bank was the first British Bank to introduce credit cards, known as 'Barclays Cards'. In 1972 "Access" cards were introduced by Lloyds Bank. Credit Cards by Indian Banks is a recent history. The Credit Card can be......

Words: 411 - Pages: 2

Premium Essay

Credit Cards

...Part 1 1. How old do you have to be to get a credit card? What requirements do you need, besides age, to obtain a credit card? You must be 18 years old and you must have some kind of income. Or, a parent who has a card account at the bank as well. Also, have the parent cosign the card and open a savings/checking account at the bank. 2. What are some benefits of using credit cards? Card offers protection from theft. You can buy goods/services when you need them even if you don't have the money at the time. They can be used for emergencies. 3. What are some consequences of using a credit card? Credit cards give the belief that you can actually afford things. If you miss your bill, your credit score gets damaged. 4. What is credit history? Your past with credit cards. How you handled them and how you payed your bills. 5. How does your credit history affect what credit cards you can get and your APR? If you don't pay your bills on time, your credit history will be worse and you will have less access to cards while your APR on those cards will be higher because the companies don't believe that they can trust you to pay. 6. How do you think people can get into credit card debt? A situation occurs such as a job loss or a medical emergency and credit card bills are not the family's main priority. 7. Do you feel that consumers are being protected? No, because credit card companies target the consumers that are in debt. They are the real people to make......

Words: 801 - Pages: 4

Premium Essay

Credit Card

...Bank ltd as sales officer since 2011 in Credit card division at sylhet zone, Before this role I worked as a sales coordinator of credit card three years in Chittagong. As we all know that credit card plays vital role in modern economic position, any officer working credit cards sales need to be dynamic . Its need to know the attitude of customer as well as social status of the customer, As a sales officer I have to maintain monthly target assigned upon me as well as customer Service after issuing the credit card . I have to complete certain responsibility as a incharge of Sylhet division. 1. My team should be filled in between ten members. 2. Team members should be trained properly exp; product knowledge, customer face, market position. Target market. Competitor’s current position, KYC, application fill up. 3.Visit with fresh member to different office potential enough to credit card. 4. Monitor their daily works such as ensuring daily call report, customer feedback, and finding problem they face during visit and solve that problem. 5. Checking the application files sourced by team member meet the drawbacks to complete the file ex; asking customer for proper document, having any loan, knowing about credit limit. 6.Team members are given new company list , corporate list , payroll customer list etc weekly basis. 7. I report to my line manager through mail who office in Dhaka weekly. 8. I have to ensure credit card to customer within 7 working......

Words: 539 - Pages: 3

Premium Essay

An Project on Credit Card

...Chapter one Rational of the study In the sophisticated digital age, the importance of the development of debit card sector is under description for the rapid economic development of the country. It is precondition to have well improved transaction for the rapid development of a country. The debit card is one of the vital and important parts of the bank sector. Basically the economic development of the country depends on the development of trade and commerce of the country. On the other hand the development of trade and commerce depends on the bank sector. So, it is the fair arms to have well improved bank sector for the economic development of the country. In this sense, debit card plays important role for the safely carry and transferring money from one place to another. we concisely enjoy how much they are benefited due to the debit card introduction in Rajshahi city. Not only trade and commerce, we can observe the change of personal life due to the debit card users in Rajshahi. Now it is the age of modern technology. In this age debit card is being used highly as a medium of technology. Debit card is keeping active role in transferring money from are corner to another of Bangladesh. It is the contribution of the bank sector to keep balance development between urban and rural area of Bangladesh. Long-term maximizing profit through customer satisfaction is the main objective of the marketing. To achieve those objectives, it is urgent to eliminate or meet the need of the...

Words: 11167 - Pages: 45

2x02 Ataque a los Titanes | HofoSetup 3.2.1 | office 2019