Card Hub, an organization which specializes in helping individuals and small businesses obtain credit card accounts, released a study which argued that small business cards should be covered by the reformed card regulations.
The Credit Card Accountability, Responsibility and Disclosure Act of 2009 exempted small business credit cards from regulations meant primarily to help consumers. But the Card Hub study argued that small business card issues are reported most often to individual credit reports and that indicates the cards should be regulated like consumer cards.
“All of the study’s participants also report business credit card usage information to small business owners’ personal credit reports,” the firm said. “As a result, the term 'business credit card' is misleading and the products it is used to describe are, at their foundation, consumer credit cards. Based on how strongly linked business credit cards are to individuals and not corporations, the language of the CARD Act could be interpreted in such a way that business credit cards are already covered by the law,” the firm concluded.