A national research firm says a recent survey of low and middle income consumers indicates the 2009 Credit Card Accountability Responsibility and Disclosure Act is helping consumers reduce their credit card debt load.
The national research firm DEMOS said one third of households surveyed reported they are responding to new information included on credit card statements by paying their balances down faster. The new information told consumers how long it would take to pay down a credit card balance if all they made were minimum payments.
The survey also reported that the households were using the CARD Act to help avoid credit card fees and penalizing interest rates.
In a survey of low and middle income households conducted in 2008, 50% of households reported accruing late fees, but that in 2012, it was just 28%
The survey also found that cardholders who made late payments were less likely to wind up paying penalty interest rates.
The survey found that 24% fewer households reported interest rates increasing as a result of a late payment, down from 53% of late paying households in the 2008 survey to 29% in 2012.
