Report: Credit Cards Generally Become More Like CU Issued Cards
A study from the Pew Health Group has found that the Credit CARD Act has virtually eliminated many of the major card issuer's practices that used to give credit unions a marketing advantage for their own cards.
The Pew Health Group is the health and consumer-protection arm of the Pew Charitable Trusts.
"While it's been less than a year since passage of the Credit CARD Act, the new law appears to be working for millions of Americans who have credit cards," said Shelley A. Hearne, managing director of the Pew Health Group. "The elimination of most of the 'unfair' or 'deceptive' practices of the credit industry since we last surveyed the marketplace marks a major milestone in the move to make credit cards safer, transparent and more fair for consumers."
The study looked at credit cards issued by the 12 largest bank card issuers and 12 largest credit union card issuers. All together, the group represented more than 90% of credit cards issued in the United States, the organization said.
The study also found that card issuers were also advancing some practices that were bad for consumers, but said the most egregious of former practices such as unilaterally raiing rates on existing balances and using "hair trigger" penalty rate increases have disappeared.