The Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) comes off as a regulation win for the Obama Administration and the American public. The reform language will certainly put a huge dent in the industry’s ability to demand huge penalty fees, which in accounts for as high as a third of total company profits.

Using Bank of America’s MasterCard, for example, we can count on annual percentage rates no longer being raised due to late payments. There will be a no-fee charge for going over limit, either. And payments will be put toward the balance with highest interest (like cash advances).

All good things for consumers, but can we really trust credit card companies? This Associated Content (AC) article seems to think the banks are all set to not help users, but to actually violate the CARD Act. AC found that Bank of America plans to “test” the introduction of membership fees on select customers into 2010, which subsequently breaks laws mandated under the act.

This Daily Finance story goes on to uncover that the loss resulting from the new CARD laws aimed to protect consumers equates to around $50 billion in revenue needing to be replaced, somehow or somewhere. Or more like with someone. Watch your statements and credit card contracts carefully in the upcoming months. Have you seen changes already?

Be Sociable, Share!

•