First Data thought it would be helpful to provide clients with an overview of H.R. 627, the Credit CARD Act of 2009. The new law focuses on credit card lending practices and consumer protections. This summary is not comprehensive of the legal provisions, nor is it legal advice.
After months of political and legislative wrangling, the U.S. Congress passed landmark legislation to reform certain credit card lending practices, and the bill was signed into law by the President on May 22. First Data is thoroughly reviewing the new law and will be providing more information to customers in the coming weeks.
The intent of this new law is to provide more robust credit card lending consumer protections. Since January 2007, Congress has paid very close attention to credit card lending practices and has been working toward passage of this type of legislation. In brief, the new law will impose new restrictions on card issuers in a number of ways.