![]() ![]() In 2015, the American Bankers Association said that the legislation resulted in higher interest rates, higher annual fees for cards and less available credit for consumers, particularly those with low incomes.īut some academic research suggests the opposite. Since banks are losing out on revenue streams from late fees, they say credit card issuers make up for it in other ways, like increasing interest rates or being more selective about granting cards to risky borrowers. Impact of the CARD Actīanking industry groups have contended that the CARD Act ultimately harms consumers. Now, regulators and lawmakers are renewing their focus on how to regulate late fees, though other efforts, like limiting overdraft fees, have stalled. Called the CARD Act, it radically altered how much banks could penalize consumers for not paying on time and sharply limited over-the-limit fees, among other reforms.įourteen years later, as American consumers’ credit card debt has ballooned to record levels, advocates say banks have found ways around the CARD Act’s regulations. As the documentary showed, Congress took aim at the types of fees Blascruz faced by passing the most significant piece of credit card legislation in decades. The documentary examined key efforts by lawmakers to rein in certain fees on credit cards and overdraft fees on debit cards that many consumer advocates say exploit low-income borrowers. Ultimately, Blascruz said she paid more than $3,000 - five times the original $480 bill.īlascruz shared her story for the 2009 documentary The Card Game, which is newly available to watch on FRONTLINE’s YouTube channel. This process compounded for months as she struggled to pay the card down. There was a fee for her late payment and an increase in her interest rate, which then put her balance over the card’s credit limit, resulting in another fee. And that's without taking its other bonus categories into consideration.When Elizabeth Blascruz was late on a payment for the $480 balance on her credit card, it triggered a chain reaction. Even by spending as little as $2,000 per year on groceries would net cardholders $120 in rewards, more than enough to cover the ongoing annual fee. supermarkets (up to $6,000 spent annually, then 1%) and on select U.S. It does have an annual fee of $95 ($0 intro annual fee for the first year), but it earns 6% cash back at U.S. If you're looking for something with a bit more reward potential, consider the Blue Cash Preferred ® from American Express. For example, the Wells Fargo Active Cash® Card offers 2% cash rewards on purchases, carries no annual fee, features a generous intro APR for purchases and qualifying balance transfers, and comes with Visa Signature protections. Often times, they have a lower APR, better perks, and can be used at more than one location. The Costco Anywhere Visa Card by Citi will be more difficult to obtain, as it requires an excellent credit score and a Costco membership is required to qualify.Ĭonsider a non-store card instead. After that, the larger reward rate only applies to online purchases. Competing cards from retailers, such as the Capital One Walmart Rewards® Mastercard®, offers a larger bonus cashback reward in the first year on in-store Walmart purchases. You may want to consider other store credit cards when choosing which one best suits your needs. If you see inaccuracies in our content, please report the mistake via this form. If we have made an error or published misleading information, we will correct or clarify the article. Our editors thoroughly review and fact-check every article to ensure that our content meets the highest standards. Our goal is to deliver the most accurate information and the most knowledgeable advice possible in order to help you make smarter buying decisions on tech gear and a wide array of products and services. ZDNET's editorial team writes on behalf of you, our reader. Indeed, we follow strict guidelines that ensure our editorial content is never influenced by advertisers. Neither ZDNET nor the author are compensated for these independent reviews. This helps support our work, but does not affect what we cover or how, and it does not affect the price you pay. When you click through from our site to a retailer and buy a product or service, we may earn affiliate commissions. And we pore over customer reviews to find out what matters to real people who already own and use the products and services we’re assessing. We gather data from the best available sources, including vendor and retailer listings as well as other relevant and independent reviews sites. ZDNET's recommendations are based on many hours of testing, research, and comparison shopping. ![]()
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