It is not an understatement to say that the CARD Act has turned the credit card industry on its ear. But, credit unions, by maintaining their focus on offering the best card product available to members, can still be true to who they have always been. And in the light of the day, the CARD Act gives us the chance to shine.

While some of what was enacted proved to be more of an operational headache than meaningful change, the new pricing regulations will have the most significant, longest lasting impact on the credit card industry. These changes immediately required deliberate policy decisions surrounding the management of the credit card portfolio because the CARD Act changed the fundamental structure of pricing. Now issuers are compelled to reprice low-risk cardmembers but are prohibited from repricing those that are high risk. The inevitable result has been an increased cost of card-related credit to all consumers, because issuers now must price everyone who today appears to be of similar risk higher to account for those cardholders who may be charged off in the future.

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

Your access to unlimited content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including and

Already have an account?

Peter Westerman


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2022 ALM Global, LLC. All Rights Reserved.