New study: New credit card rules helped consumers without raising rates

Well, well, well, what do you know…

A year after tighter credit card regulations took effect, an advocacy group study concludes that they succeeded in making banks come clean about how much consumers actually pay to use cards.

The Center for Responsible Lending study examined the effect of the Credit Card Act of 2009, which the industry had predicted would result in higher card interest rates. It said that, after adjusting for the effect of the troubled economy on card issuers, “actual prices [for credit card use] have remained stable and available credit has not tightened beyond what would be expected.”


The law stemmed from complaints that consumers had been misled for years into thinking they would pay less for credit card debt than was true. It imposed the greatest changes in three decades on the credit card industry, including tougher restrictions on interest rate hikes and late fees.


95 thoughts on “New study: New credit card rules helped consumers without raising rates

  1. I do think things changed on the consumer side, though – nowadays I almost always have to show ID if I use a credit card.

    This wasn’t so last year and before.

    It could be credit card companies want to crack down on card fraud this way. I have no problem with that, obviously.

  2. “President Obama hasn’t done anything for average Americans. I mean, why, I can go outside and see that the bodega which *never* shovels the snow correctly in front of their store still doesn’t do so. Some change!”

    LOL, pardon me, this is fantastic news. I don’t blame anyone for worrying about financial institutions playing shenanigans with consumers, and am gratified to read evidence that this law seems to be working largely as intended.

  3. Meanwhile, My Governor down here in florida just canceled my HSR(high speed rail)! Yes, it was my HSR! Why? NO reason. Because, no matter how he frames it, he has a 5 billion dollar tax cuts for his wealthy buddies!
    I am telling you, dems should be all over the MSM with this!
    Instead, the US house republicans are giving them cover, with this budget showdown.

  4. I never understood why this wasn’t addressed much sooner. I mean when the obvious business model is trickery, confuse your customers to sign something they probably would need a lawyer to decipher and the government is a-ok with it?

    I have no qualms with the “trade-off” where folks who have bad credit ratings can’t get cards or have much higher interest rates if they can get one. At least they know the rates going in versus the banks and cc companies playing games to milk folks with interest rates skyrocketing, hidden fees and creative penalties for overdraft etc.

  5. And I called Seantor Leahys office in D.C.. told staff, to please ask the good senator to investigate Thomas and Scalia- for their votes being bought by the KOCH brothers!
    She said, I would be more than happy to pass that along to the senator! HMMMM!

  6. Is thast the one Obama was trumpheting last year? I believe he loses those federal funds right, so I guess it was a matching issue?

    Out of all the GOP governors elected, Scott made no sense. I mean the guy is a criminal, but because he had an [r] after his name that was enough.

    It’s more than just the politicians who you can tell are trying to sabotage the economy, it’s a lot fo the voters it seems, they want to stick it to Obama, even if it means they screw over themselves, their community and their country. Fox, Rush and the MSM have them so worked up they’re celebrating decisions against their own self interest because politics is a “team sport”.

  7. These Senators had a meeting with POTUS today! Seems like this is what they talked about! Everybody seems to be on the same page!

  8. Wow; that’s interesting. This is why people who think that they are “punishing” Dem politicians by enabling the GOP are just mistaken. National politicians like Dodd (who I know retired) are just fine and will land on their feet with plum jobs. It’s the ordinary American who gets the short end of the stick, as we’re seeing now with the GOP gaining far more influence over the federal budget than they had previously, and states like Wisconsin having to watch the GOP bust up public unions (as they promised to do).

  9. /sigh of relief

    Glad to see that there’s an effort at unifying and getting on the same page. Great link; thank you.

  10. Its more than that. They are being paid by their masters like KOCH, who is just so involved that it is scary!
    Can Warren Buffett match Them?

  11. I don’t think that it was addressed because the financial services industry is really adept with lobbying congress. This is why I’m never dismissive of Dems’ achievements, because even imperfect, these are major reforms in a challenging context.

  12. Now they need to get out and promote it and defend it. Can’t let the lazy MSM push Fox talking points because nobody rebuts them. I see Reid mentioned the “so be it” response, but it was only in passing.

    The White House can’t attack on it because they have to cut a deal and work with Boehner and want to seem above it all, but House Dems should be all over it with ads in key districts.

    “Speaker John Boehner says “so be it” to job losses caused by the draconian GOP budget that economists say would put a million people out of work, but one area he didn’t say “so be it” too was his own district where he spends $2.5B on a second engine project for fighter jets the DOD and Pentagon say they don’t even want anymore. Tell Rep So-in-So that unlike John Boehner, you care about jobs and the economy and don’t support the job killing cuts of the GOP Budget. “

  13. More generic polls, probably underpolling minorities:

    Despite a recent jump in the polls for Barack Obama, the president is vulnerable to a Republican challenge, according to a new poll.

    The Public Policy Polling survey out Wednesday shows Obama trailing a generic Republican candidate by two percentage points, 46 percent to 44 percent. Against a generic “tea party conservative” Obama loses more ground, trailing 49 percent to 45 percent.

    The problem for Republicans is that there is no current member of the GOP field who runs as well against Obama as either a generic Republican or a generic tea party conservative.

    Mike Huckabee runs strongest against the president, but still trails Obama by 3 percentage points, 47 percent to 44 percent. Obama holds a 5 point edge on Mitt Romney and 9 points on both Newt Gingrich and Ron Paul.

    If Sarah Palin becomes the GOP nominee, Obama runs away with the race – leading her 52 percent to 40 percent.

    The poll of 600 registered voters was taken Feb. 11-14 and has a margin of error of plus or minus 4 percentage points.

    Read more:

  14. How did Carney do? I was suspecting they’d try a whole bunch of gotcha type questions and questions Gibbs refused to answer in the past.

    How many jobs will this cost Florida?

  15. Florida Gov. Rick Scott has joined a growing list of Republicans who have spurned the Obama administration’s high-speed rail funds.

    In a letter to Transportation Secretary Ray LaHood on Wednesday, Scott said the projections for Florida’s rail project are too optimistic and that the project wouldn’t pay for itself, leaving taxpayers on the hook for the remaining costs.

    “I believe the dollars being made available for proposed high-speed rail projects are better invested in higher yield projects,” Scott wrote. “The long-term job creation opportunities from these projects are greater, the private investment stronger, and the economic yield more permanent.”

    Last year, Ohio Gov. John Kasich and Wisconsin Gov. Scott Walker also rejected federal funds for high-speed rail projects. In response, LaHood redistributed the funds to other states, including Florida.

    House Republicans have proposed cutting $5 billion in existing federal funds for high-speed rail to lower the deficit.

    In a statement, LaHood said the administration is “extremely disappointed” by Scott’s decision to “walk away from the job creating and economic development benefits of high speed rail.”

    “This project could have supported thousands of good-paying jobs for Floridians and helped grow Florida businesses, all while alleviating congestion on Florida’s highways,” LaHood said.

    He indicated that the department would once again redistribute Florida’s rail funds to other states where there is an “overwhelming demand” for the money.

    “It is projects like these that will help America out-build our global competitors and lay the foundation needed to win the future,” LaHood said.

    Politico 44-


    Pressure from Washington, is what this is…

  16. When ask about genaric candidates, folks usually picture their perfect candidate who would vote exactly how they would vote. Given we know they names of the contenders for the most part, PPP polling generics is looking for bad news.

  17. FROM THE TOP — Jay Carney walks in the press room, about 13 minutes late. He says “good afternoon” and that he’s “glad to be here.” The briefing room is packed; he says, “I appreciate the turnout.”

    “I’ve never seen this room this crowded,” he says.

    Then he makes an announcement: President Obama will give TV interviews to local stations in Cincinnati, Richmond and Milwaukee this afternoon; those interviews are embargoed until 6 p.m. It’s part of his “continued effort to talk to Americans about his budget proposal and how it will prepare our country to win the future,” Carney says. (12:44 p.m.)

  18. The new credit card law really helped me to see straight. I love the explanation box of how much I need to pay to have a bill paid off in 3 years that I have been paying on for years.

    The department stores got slick and didn’t give you the 3 year amount. They also changed my minimum payment from $10 to $25 dollars and I’m sure that’s because if I had been late they would have only been able to charge me a $10 late fee…..guess what happen….that card is PAID OFF because they raised minimum payment…to that I say thank you, 🙂

  19. Boy, I hate it when I am so focused on a previous thread, I don’t even notice when a new one goes up.

    It is nice some of the changes, including reduced late fees, more defined rules for increasing interest rates, etc.

    I also posted this on the last thread, but it is somewhat applicable here.

    Per the CNN busines web site: “Why middle class is now underclass
    9:28am: Incomes for 90% of Americans have been stagnant for at least 30 years. Meanwhile, the richest 10% are getting much richer.”

    Gee, what happened 30 years ago. That’s right, a new morning in America under Reagan. They should have named it “A new mourning for America.”

  20. Feb 11-14? Thii is a weekend poll. They did the poll from Friday to Monday. Who is home on the weekends? The elderly who normaly vote republican.

  21. The GOP is over reaching. And it is early yet. I am not saying 2012 will be a cakewalk, but if this keeps up, it might be!

  22. I hope that they do crack down on fraud. My check card & cc say “see id” on the back, but they fail to ask for it. For this reason, my check card was stolen and the criminal charge $1500. This experience was horrible. I had been laid off a few months before and had just started working again. Had the retailer (Walgreens) checked ID they would have known that it wasnt me, not to mention it was a man using the card. He went to four different Walgreens and none of them check.

  23. I used to work in retail and saw a lot of people wrote See I.D. on back. I always asked when it said that and I thought it was a very smart thing to do.

  24. Did they mention Boehner’s 1 million job killing cuts? Kidding. I know they didn’t.

  25. Fed Forecasts Faster Growth as Economy Gathers Steam

    WASHINGTON — The Federal Reserve revealed Wednesday that its policy makers had substantially upgraded their forecasts for how much the United States economy will grow this year, even though they expect that unemployment will remain painfully high for some time.

    The core projections of top Fed officials now call for growth of 3.4 percent to 3.9 percent this year, up from the previous forecast of 3 percent to 3.6 percent, released in November. But the grim outlook for the job market was largely unchanged; Fed officials expect unemployment to be 8.8 percent to 9 percent this year, only slightly less than the November estimate of 8.9 percent to 9.1 percent.

  26. These guys all want to be like Reagan with the Air Traffic controllers. This rally will be a badge of honor. The GOP focused so much on Governorships because the plan is to break the unions using the economic down turn and State budgets to do it.

    California was going to be the big prize.

  27. These same Republicans will stick taxpayers with a football or baseball stadium though while the billionaire owners of these team are charged very little for prime public land. Such Hypocrites!

  28. Media Matters exposes the GOP in a video that runs for less than two minutes. Speaker Boehner has gone from “Where Are The Jobs” to “So Be It” if jobs are lost because of GOP budget cuts. His cavalier let them eat cake attitude is a gift to the Democrats.

    Speaker Boehner: If GOP Spending Cuts Kill Jobs, “So Be It”

    February 15, 2011 12:10 pm ET — Matt Finkelstein

    Since taking over the majority last month, House Republicans have made an unambiguous first impression: they don’t really care about jobs. Instead of fulfilling their pledge to focus on job creation, Republicans have prioritized a symbolic health care repeal vote, intrusive anti-abortion legislation, and spending cuts that would lead to job losses.

  29. Why doesn’t Donahue just call in a marker from all the money he spent in the mid-terms. I mean all he needs is 25 House members to jump and the Obama budget gets passed by the House.

    If Dems had the House, infrastructure spending wouldn’t be in question. These silly people who don’t realize elections have consequences.

    And CoC will be back spending near $100M helping Republicans in 2012 regardless of how the budget goes.

  30. Heard Kent Conrad on NPR defending the Pres and his budget and talking positively about SS and Medicare/Medicaid.
    He was on the same page and it was very enlightening. Said that SS isnt part of the debt.

  31. Isn’t part of the deficit as it’s set spending and paid for in the present. it becomes a huge problem in the future, but nothing a few tweaks couldn’t fix. It doesn’t need the overhaul that the GOP wants.

  32. WOW, This is amazing…..


    Following up on an earlier item, House Speaker John Boehner (R-OhIo) asked for a few billion dollars to build a jet engine for the Pentagon that the Pentagon doesn’t want. Today, Boehner’s colleagues said, “No.”

    In a sign that some freshman Republicans were willing to cut military spending, the House voted 233-198 on Wednesday to cancel an alternate fighter jet engine that the Bush and Obama administrations had tried to kill for the last five years.

    The vote marked another instance in which some of the new legislators, including members of the Tea Party, broke ranks with the House speaker, John A. Boehner, a Republican from Ohio, where the engine provided more than 1,000 jobs.

    President Obama and Defense Secretary Robert Gates urged Congress to scrap the engine and save up to $3 billion over the next several years. John Boehner urged Congress to approve the wasteful spending anyway. Today, Boehner lost.


  34. Well, that’s a turnaround. I read an article earlier in the week where he was complaining about SS not being part of the cuts. It was a Dem senator anyways, maybe I am thinking of the wrong person.

  35. That’s exactly what I thought when I saw that post. Rachel’s segment on the speaker last night was brilliant. Too many in the traditional media are afraid to report what is painfully obvious. The Republican (Just Plain Nuts) Party is the biggest threat to our economic stability security, and growth.

  36. Actually, if you removed it the deficit would remain the same, except it would appear a lot worse in terms of % of the budget. Yes, it could use a few minor tweaks so that in 25 years it doesn’t actually have a negative attached to it, but like you said, it doesn’t require a sledge hammer.

  37. I am going to be heartless, for just a minute, because it does bother me on one level. But if a 1,000 jobs have to go (which they really won’t) so be it.

  38. He’s completely tone deaf – I mean harp on spending, but they ask for spending that nobody wants because it’s in a neighboring district. Says “so be it” to everybody elses job loss, but to job’s near his district he wants to spend $3B for a second engine in a fighter that the DOD doesn’t even want.

    I wonder who the other 197 were, hopefully all Republicans, and Dems didn’t provide any votes.

    OTOH, this could cause Boehner to go all in with soending cuts in a “you’re hurting my district, I’m gonna hurt yours”.

  39. To answer my own question –

    “The vote was unusually bipartisan, and tended to follow geographic, not political lines. In all, 233 lawmakers voted against the unnecessary engine — 123 Democrats and 110 Republicans.

    Of course, it’s worth emphasizing that 130 House Republicans — the ones who claim to be desperate to cut unnecessary spending, even if it leads to massive layoffs — voted to keep spending taxpayer money on an engine the Pentagon doesn’t need and didn’t ask for.”

    Meaning 69 Democrats and 130 Republicans voted for it.

  40. He’s in over his head. He doesn’t like to work the long hours, and doesn’t seem to know how to get the votes before putting something to the floor. Who is his whip?

    Everytime he loses a vote it makes it that much easier to break from him the next time.

  41. In another post earlier today, Steve Benen summed up perfectly the problem with Speaker Boehner and his caucus:

    These guys, in other words, have no idea what they’re talking about, but they have the power to do enormous damage.

  42. Give it a little more time until the cuts to programs and services have fully kicked in…and they finally realize that the folks they voted in aren’t really interested in creating jobs or solving the problems we face.

    Well, I can hope…that…they…will wake up!

  43. Happening now at

    Next Up… February 16, 2011 4:45 PM EST

    President Obama Speaks on the America’s Great Outdoors Initiative

  44. Sorry, I meant Prima Donna, know nothing, don’t care, wanting Boehner to fail, – “New hip gop” Eric Cantor ☮

    Do I need more adjectives 🙂

  45. Guys,remember during the election when the candidate Barack Obama said that we all us have to do our part solving problems and making this country a better place?

    Look and listen to young ones, and old, chanting: “This is what democracy looks like!”


  46. On top of that Walker is trying to spinoff UW Madison from the UW system. This guy is a control freak.

  47. And Obama has an interview with local Milwaukee media. I am sure he’ll get a question about Wisconsin Governor’s nutso proposal.

  48. I’d imagine the other universities in the system would be pissed about that. Madison is the university with the prestige and being part of the same system reflects well on some of other less-stellar UW schools (I am looking at you, UW-Stout).

  49. I did not watch the complete press conference. I had to leave after the first five to six minutes of it.

    Today he was very jittery and of course looked so young. It is an enormous job to take on. I am sure that with practice he will get better. He needs to toughen up.

    A lot of smart people seemed to feel he was the person they wanted. Keep your fingers crossed.

  50. desraye, I’ll have you know I am an elderly DEMOCRAT! I stay home too…..unless I’m out registering new voters or picketing our insane Governor “Death Panels”!

  51. Actually, I am thinking it is better to have Boehner there than a tougher GOP Speaker for us. The best would be if Nancy was still Speaker. Let’s try to get her back in 12!

  52. I was watching the beginning of Ed Schultz (I know, I know, I shouldn’t be watching him but Rachel said to watch him tonight!) and saw a clip of PBO saying we all need to make tough choices about cuts after he was asked a question about the WI labor cuts. He also said he had been busy with the budget and hadn’t kept up with what was going on before he said the comment.

    I believe it was clipped so Ed could rag on his comment as a few minutes later it showed him talking further about supporting the Unions or something like that. Anyhow, I turned the station immediately as I figured Ed was up to his usual mischief of painting PBO into a negative corner.

    Does anyone know where he got the clip from? I know from the past we need to hear the whole statement not just a part of it. We cannot afford to have some so called media progressive commentator bring down our president and ruin the WI Union workers view of him from false or parsed info.

    There are lots of so called supporters with no biographies on OFA tonight. Lots of Users from… There is one real supporter that seems to be from WI and seems really riled by the comments PBO made. I think she got it from Ed’s show.

  53. I read the press conference transcript at the WH and Jay Carney did a pretty good job. He got to the second row of reporters and said he is trying to be fair to everyone which evidentally Gibbs kept calling on the first row.

    He got some good laughs and was able to move on when someone tried to ask too many questions. They were very respectful also.

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