Congress passed several laws to give consumers a more informed choice about their credit card decisions, the most recent being the Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009. However, numerous fees and fee calculations implemented by opportunistic credit card issuers over recent years illustrate the depth of the asymmetric information problem in a the industry, resulting in a market failure not fully corrected by the CARD Act. This paper will provide a critique of the CARD Act and argue that in order to sustain consumer welfare, the Consumer Financial Protection Bureau (CFPB) created by Title X of the 2010 Dodd-Frank Act must supervise and react to developments in the industry. I recommend creating a specific credit card division, requiring consent for intended fee implementations, enforcing more credit education for consumers, and evaluating the use of consumer credit scores as important steps for this goal.
Dr. Ross Singleton
Date of Completion
Lee, Christina B., "Sustaining Welfare for Consumers in the Credit Card Industry Reactions to the Credit CARD Act of 2009" (2010). Economics Theses. 75.