The Credit Card Accountability, Responsibility and Disclosure Act of 2009 will require that companies regulate monthly billing patterns and give 45 days' advance notice before increasing interest rates, fees or finance charges.
This is resulting in aggressive competition for solid credit rich, since it will become a hassel to deal with slow and no payers.
Credit.com reports:
"The CARD Act is leading all issuers to the top of the credit food chain" Jason Arnold, an analyst at RBC Capital Markets in San Francisco, said in the report, according to Credit.com.
Borrowers with low credit scores may encounter new membership fees, aimed at making up for lost revenue from the Credit CARD Act, according to the report. These consumers may have already encountered difficulties applying for credit, caused by tight lending standards
More unintended consequences - raising the cost to the very borrowers they say they are trying to help.
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