On May 22, 2009 President Barack Obama signed the Credit Card Accountability, Responsibility, and Disclosure Act, also known as the CARD Act. At the time, many consumer advocates rejoiced at the enactment that stopped the ability of card issuers to raise annual percentage rates (APRs) even when customers were current on their existing balances. Moreover, the sum of reforms enacted took a full 15 months for all provisions to take effect.
Despite the protections consumers gained from the CARD Act, some industry executives warned that the historic reform would make credit costlier and less available. Further, there were predictions that rules and oversight would bring “unintended consequences” for consumers.