Pew Safe Credit Cards Project

''Business Credit Cards can be Rewarding but Risky''

"Direct mail offers are flowing for business credit cards, many with attractive promotional interest rates and balance transfer deals...while there are many reasons to open an account, there can be substantial risks involved."

''Bank Fees Are a Credit Union's Best Friend''

"Something is wrong when keeping cash in the kitchen cookie jar seems a reasonable substitute for your bank.''

''Consumer 10.0: How the Pew Trusts aided credit card reform''

"It was early 2007, and Michael Roster and Dwane Krumme each viewed the credit card industry with growing dismay."

''Tight Times Boost Business Credit Cards''

''More small companies—already struggling with weak sales and tight lending—are being forced to rely on business credit cards to provide working capital.''

''Consumers Hold High Hopes for New Bureau''

''If you've ever thought someone was playing fast and lose with the rules on your credit cards, credit score or mortgage, but you had no idea where to go with your complaint, you now have a place to turn.''

''Senators Seek More Disclosure For Business Credit Cards''

"Four Senators today called for more disclosure on business credit card offers so cardholders will understand that business cards are not protected by the same laws as regular consumer cards that bar practices like retroactive interest rate hikes."

''Business Credit Cards Provide Few Safeguards''

''Households receiving offers for 'business' credit cards would be wise to throw them away, a nonprofit research group is warning consumers.''

''Credit CARD Act Turns Two: Are Consumers Better Off?''

"It’s been two years since the landmark Credit Card Accountability Responsibility and Disclosure Act of 2009 was signed into law, and by all accounts, it’s led to some pretty significant changes in the giant industry grinding away behind those little pieces of plastic."

''Should You Sign Up for a 'Professional' Card?''

"Credit-card issuers are marketing so-called professional cards—formerly reserved for small-business owners or executives—to individuals, a new report says."

''Consumers must watch for unregulated credit cards''

"The sudden interest-rate hikes, high fees and steep penalties that last year's credit card regulations were designed to eliminate are still lurking in one segment of the credit card market: cards designated for businesses."

''Study: 'Business' credit cards put consumers at risk''

"From January 2006 to December 2010, American households received more than 2.6 billion offers for so-called "business" credit cards, according to a new report from the Pew Safe Credit Cards Project."

''Extending Credit Card Protections to Small Business Users''

"Each month, Americans get more than 10 million business credit card pitches in their home mailboxes. The cards are aimed at small businesses and sole proprietors, but they generally lack the new protections that apply to consumer cards, a new report from the Pew Charitable Trusts says."

Business Credit Cards Place Millions of U.S. Households at Risk

The Credit CARD Act of 2009, signed into law two years ago, made consumer credit cards safer and more transparent. But, its rules did not apply to cards labeled for business or commercial use, placing millions of individuals and small business owners at risk.

Business Credit Cards Place U.S. Households at Risk

Every month, millions of consumers receive offers for business credit cards which are not protected by Credit CARD Act safeguards. The large number of solicitations for less-regulated cards place American families at risk.

''Study: 2 Years After Credit Card Reforms, Rates, Fees More Stable''

"Credit card interest rates have held steady, penalties are less costly for consumers and annual fees and other charges have changed little over the past year, according to a study released Tuesday by the Pew Safe Credit Cards Project."

''Study Finds Positive Results from Credit Card Law''

"Banks and some pundits had predicted that credit card users would face skyrocketing interest rates, a spike in annual fees and a plethora of other negatives after stringent new rules on cards kicked in last year."

Two Years after Credit Card Act, Pew Finds Interest Rates and Other Fees Stabilized

Credit card holders are seeing stabilized interest rates, the elimination of overlimit penalty charges, a reduction in late fees charged by banks and minimal changes in annual fees since the Credit CARD Act of 2009 took effect, according to new research by the Pew Health Group’s Safe Credit Cards Project.

A New Equilibrium

U.S. Households at Risk from Business Credit Cards

Nick Bourke, director of the Pew Health Group's Safe Credit Cards Project, explains that practices outlawed under the Credit CARD Act of 2009 remain widespread on less-regulated card products marketed to millions of American households every month.

Safe Credit Cards on the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009

Pew Safe Credit Cards Project Manager Nick Bourke discusses impact of The Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009.

''The Customer Always Comes Last''

"The credit card industry is working hard to subvert the Credit Card Act of 2009, which banned many of the industry’s most predatory practices. The Federal Reserve Board, which oversees and coddles this industry, needs to ensure that consumers get the protections Congress intended, and Americans so clearly need. The Fed also needs to take a hard look at problems cited last month by the Pew Charitable Trust Safe Credit Cards Project."

''Last phase of credit card reform law in place, taking aim at penalty fees''

"The sweeping reform of the credit card industry was finally completed Sunday as the last pieces of the landmark federal law designed to stop unfair or deceptive practices took effect."

Consumers to Benefit from Final Implementation of Credit CARD Act of 2009; Pew Urges Additional Action from Federal Reserve

Nick Bourke, director of the Pew Health Group’s Safe Credit Cards Project, today issued the following statement in response to the final rules under the Credit CARD Act of 2009, which will take effect Sunday, August 22.

''Taking credit''

"Consumers beware: Credit-card companies already are finding ways around the new law designed to crack down on their tricky fees and hidden charges. The Credit Card Accountability Act of 2009 was intended to stop lenders' unfair practices, such as jacking up a cardholder's interest rate without warning or shortening billing cycles. For the most part, the law is working."

''Credit cards so far avoid worst-case predictions''

"The benefits of stricter credit card regulations appear to have come without the predicted drawbacks — at least so far."

''New wave of credit card abuses''

"A 2009 federal crackdown on abusive credit card practices has exposed a litany of other ways consumers are being hosed."

''Pew: Law vanquished many credit-card ills, not all''

"There's good news for credit-card users, according to a report today from the Pew Charitable Trusts: As promised, many of the credit-card industry's best-known tricks and traps for consumers were vanquished by last year's credit-card law."

''As credit card holders play it safe, issuers increase non-penalty service fees''

"A new study by the Pew Charitable Trusts found that annual fees and service fees have increased over the past year while penalty charges -- which are subject to the new federal regulations -- remained largely unchanged."

''Credit cards not always clear on penalty rates''

"A study by the Pew Safe Credit Cards Project found that card issuers are complying with a new law this year that prohibits numerous deceptive practices. Previously, all card issuers tracked by Pew used at least one practice that is now illegal."

''Credit-Card Reform Succeeds in Ending Many Deceptive Practices, Pew Finds''

"Credit cards offered online by the 12 largest U.S. banks have eliminated some of the most troublesome practices for consumers, the Pew Charitable Trusts said. Increasing interest rates on existing balances for some infractions of the card agreements and applying payments to balances with the lowest interest rates first have ended, according to the report released today by the Philadelphia-based nonprofit organization. The study looked at almost 450 cards advertised by banks and credit unions and compared terms for cards offered in March 2010 and July 2009."

Pew Report Finds Credit Cards More Transparent, Yet Problems Remain

Most of the practices deemed “unfair” or “deceptive” by the Federal Reserve have disappeared from new credit card offers since federal passage of the Credit CARD Act last year, according to a new report by the Pew Health Group’s Safe Credit Cards Project. Yet new trends have emerged that could cost cardholders significantly.

Two Steps Forward

This report presents findings of the Pew Health Group’s most recent assessment of the credit card marketplace, based on data collected in March 2010.

''The Fed and Your Credit Card''

"Congress passed legislation last year banning many of the worst practices of credit card companies and ordered the Federal Reserve to issue new rules to ensure that late charges and all other penalties — a major source of abuse — are 'reasonable and proportional.'

That dubious reading is especially troubling given a recent analysis by the Pew Charitable Trusts’ Safe Credit Card Project that found that some companies fail to disclose the penalty interest charges in their contracts — a clear violation of banking law."

''As Some Consumer Banking Fees Fall, Expect Others to Rise''

"Thanks to a series of laws passed by Congress and rules imposed by the Federal Reserve, fees for using credit cards and bank accounts have begun to decline appreciably, which is a real boon to consumers. The key question is: Will banks find other ways to hit customers with new charges to make up for lost profits?"

''CARD act misses mark on interest''

"The Federal Reserve this week adopted rules meant to protect credit card holders from predatory penalty fees and other charges, but not everyone feels the agency went far enough."

''High APR? Don't worry, you can still negotiate''

"In the never-ending battle between credit card companies and their customers over interest rates, consumers still hold at least some of the cards."

Comments Submitted to the Federal Reserve by the Pew Safe Credit Cards Project (Regulation Z, Reasonable and Proportional Penalty Charges and Other Rules Under the Credit CARD Act of 2009)

The Pew Health Group’s Safe Credit Cards Project submitted comments to the Federal Reserve Board regarding the Board’s proposed rules under Regulation Z (Docket No. R-1384). The rules cover “reasonable and proportional” penalty charges and other requirements under the Credit CARD Act of 2009.

Federal Reserve Issues Final Rules on Gift Cards

The Federal Reserve Board issued its Regulation E Final Rule on gift cards as required by the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009. The Pew Safe Credit Cards Project submitted a letter to the Federal Reserve during its proposed rule comment period requesting that the Fed consider limiting the amount of any such monthly fee.

Taking Charge (Spring 2010 Trust Magazine article)

The Pew Charitable Trusts began work to protect Americans from the credit cards’ most perilous provisions. That effort culminated in May of 2009 with the passage and presidential signature of the first major credit-card reform ever.

''The Fed's Responsiblity''

"Congress passed legislation last year intended to protect consumers from the credit card industry’s most deceptive and unfair practices. The main provisions finally went into effect last month. But the Federal Reserve still has to write new rules intended to stop companies from bleeding customers dry with exorbitant fees for late payments, with charges for exceeding the credit limit, or with “any other penalty fee or charge.”

''Fed proposes rule to limit credit card fees''

"In the latest move to overhaul consumer banking practices, the Federal Reserve unveiled a preliminary rule last week to address pesky credit card fees such as late and over-limit charges. The rule — which will be finalized after the public is given a chance to comment — is as notable for what it doesn't do as for what it does."

Moving Towards Safer Credit Cards

On February 22, major new consumer protections took effect as part of the second implementation phase of the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009. Just two practices addressed in this second phase will save American consumers at least $10 billion a year. The Pew Health Group's Safe Credit Cards Project is looking ahead to the third and final phase of the Credit CARD Act, to take effect August 22, 2010, which will require all credit card penalties to be “reasonable and proportional” and will direct card issuers to review all interest rate increases since the beginning of 2009.

Pew Finds Credit CARD Act Will Save Consumers Billions

The Credit CARD Act of 2009, with major provisions taking effect this month, will save American cardholders billions of dollars by banning unfair or deceptive practices, according to research from the Pew Safe Credit Cards Project.

''Consumers score a win on credit card rules''

"Consumers scored a few unexpected victories in a set of Federal Reserve rules issued earlier this week. The Fed issued 1,155 pages of rules Tuesday telling banks how to comply with new laws regulating credit cards that go into effect on Feb. 22. In a handful of cases, in which the law was unclear, federal regulators used their discretion to go a step further to protect consumers."

Pew Commends the Federal Reserve’s Latest Rules on the Credit CARD Act of 2009

Nick Bourke, project manager for the Pew Safe Credit Cards Project, today issued the following statement in response to the latest rules under the Credit CARD Act of 2009.

''Credit card rates: Nowhere to go but up''

"For millions of credit card customers, here's the good news: As of Feb. 22, a new law will bar banks from a host of practices that consumer advocates have long blasted as unfair."

Regulatory Comment on Credit Card Disclosure Requirements

The Pew Safe Credit Cards Project submitted comments (PDF) to the Federal Reserve Board regarding the Board’s latest proposed rulemaking under Regulation Z (Docket No. R—1370). The rules implement provisions of the Credit CARD Act of 2009 that are effective February 22, 2010. Pew’s comments focused on clarifying the rights of consumers in a credit card contract and increased responsibility for and disclosure from credit card issuers.

''Banks Revising Their Old Tricks''

"In some ways, credit card banks are hustling to act before new consumer rights take effect next year. In other ways, they're in no rush at all."

''Credit card reforms mean mailings to consumers may include big change''

"A study by The Pew Charitable Trusts released last month found that advertised rates on about 400 credit cards this summer had jumped as much as 23 percent. In addition, the study reported that many issuers were shifting customers from fixed to variable rates, which would ease some of the notification requirements."

''Credit-Card Company or Loan Shark?''

"A recent report done by the Safe Credit Cards Project at The Pew Charitable Trusts found that over the past four months, credit-card companies have routinely tacked on new fees, altered account terms, and jacked up interest rates, sometimes to as high as 30 percent."

''Credit Cards: Break Up, or Make Up?''

"Credit-card lenders, facing higher defaults and new, profit-crimping laws, have been increasing fees and interest rates, raising minimum payments and cutting credit limits. Some Citigroup Inc. customers have seen their credit limits cut, their interest rates jump as high as 29.99% or their cards canceled altogether."

''Credit-Card Rates Up Before New Law''

"...credit-card companies are rushing to raise rates and tack on extra fees ahead of a law slated to take effect Feb. 22 that is supposed to limit such moves in the future. In some cases, rates are doubling to as high as 30 percent or more, even for people who pay their bills on time."

''After credit card outrage, Ohio couple gets relief''

''Chuck and Jeanne Lane got some good news earlier this week: After more than doubling the Lanes' monthly minimum payment, their credit card company is now slashing their payment."

''Cards From Largest Banks Would Break Law, Pew Says''

"None of the credit cards offered online by the 12 largest U.S. banks would meet requirements of new federal curbs on the industry’s rates and fees, a report from The Pew Charitable Trusts said."

Pew Report Finds Deceptive Credit Card Practices Remain Widespread

One hundred percent of credit cards offered online by the leading bank card issuers continue to include practices that will be outlawed once legislation passed in May takes effect next year, according to a new report by the Pew Health Group’s Safe Credit Cards Project.

''Tricks, Not Treats -- Pew Study Finds 'Deceptive' Credit Card Practices Rising''

"Alison Howard, a single mom from Atlanta, sent her only son Bryan off to college last year for what she hoped would be a lifelong education. One lasting lesson is now burned into his brain: Beware of banks bearing special credit card offers."

Still Waiting

This report presents Pew’s findings about the state of the credit card market on the eve of significant new federal regulations designed to eliminate unfair or deceptive practices and foster safer and more transparent products.

''Credit Card Chicanery''

"Congress blundered badly when it gave the credit card industry as long as 15 months to phase out the deceptive and predatory practices that were outlawed in a new law enacted in May."

''Last Minute Credit Card Tricks''

"The Credit Card Accountability, Responsibility and Disclosure Act, signed into law in May, gave credit card companies a leisurely timetable — as long as 15 months — to phase out predatory practices used to bleed consumers. Not surprisingly, the companies have exploited this generosity by driving already outrageous interest rates still higher and imposing fees that are pushing struggling families further into debt.

Congress can end this injustice by moving up the deadline, accelerating reform and helping consumers."

Anger at Bank Overdraft Fees Gets Hotter, Bigger and Louder

"Controversial bank account fees, which have fattened banks' bottom lines at the expense of vulnerable consumers, are rapidly becoming a black eye for the industry."

''Congress to Speed New Credit Rules to Stop Bad Bank Behavior''

"Bankers groups are crying foul as legislators moved today to speed up implementation of credit card reform in the wake of a flood of rate hikes and customer cancellations."

Regulatory Comment on Credit CARD Act Rule: Advanced Notice and Cancel Requirements

The Pew Safe Credit Cards Project submitted comments (PDF) to the Federal Reserve Board regarding the Board’s interim final rules under Regulation Z (Docket No. R-1364). The rules cover advance notice and right to cancel requirements under the Credit CARD Act of 2009. Pew’s comments focused on a number of exceptions the Board proposed, which could allow issuers to raise interest rates, change minimum required payment levels and impose potentially large deferred interest charges with little or no advance warning.

''Part of new credit card law kicks in today''

"New credit card restrictions are set to take effect today that will give consumers more information but only limited relief from high interest rates and fees."

''Reforms for Credit Cards Go in Effect''

"Although most credit card reforms approved by Congress this year won't take effect until February, a few provisions kick in Thursday — and consumers could start getting some relief from rising interest rates."

''Starting Thursday, Credit Card Users Get More Rights''

"The first phase of the landmark credit card legislation signed by President Obama in May will take effect this week, forcing card issuers to give consumers more time to pay their bills and to consider interest rate increases."

Regulatory Comment on Credit CARD Act Reasonable and Proportional Rule

The Pew Safe Credit Cards Project submitted comments to the Federal Reserve Board in regard to rulemaking under the Credit CARD Act of 2009. These comments focused specifically on the law’s requirement that penalty fees and charges must be reasonable and proportional to related cardholder omissions or violations.

''A welcome reform of credit card rules''

"Congress is throwing a rope to credit card users who have been trapped by an industry whose standard operating procedures include deceptive practices, arbitrary rules changes and crippling interest rates. The aid couldn't come at a better time."

''Credit Card Law Has Some Unplanned Booby Traps, Including Higher Rates, Fees, Tighter Credit''

"The new credit card law is receiving widespread kudos as a victory for cardholders over the lenders that impose "gotcha" fees and penalties with scant justification and little notice."

''Congress Sends Obama a Bill with Sweeping New Rules for the Credit Card Industry''

''Congress on Wednesday sent President Barack Obama a bill with sweeping new rules for the credit card industry that will affect just about every American. The House voted 361-64 for the bill on Wednesday. The Senate had already approved the measure by a 90-5 vote on Tuesday.''

''Credit Card Bill a Boon to Consumers''

"It's not a bailout, but this could be quite a week for consumers, with the President expected to sign by Memorial Day the most sweeping reforms of credit card industry regulations in more than 20 years."

''Bill Aims to Soften Credit Card Rate Shocks''

''The Senate passed legislation Tuesday to protect credit card holders from sudden interest rate increases, but consumer groups and card issuers warned that people are still likely to face obstacles in getting and maintaining credit.''

Pew Analysis Shows Senate Bill Would Curb Billions in Credit Card Penalty Charges

A full 82 percent of credit cards allow penalty interest rate hikes that could last indefinitely, giving responsible cardholders no right to return to the originally agreed upon interest rate, according to a new issue brief from The Pew Charitable Trusts’ Safe Credit Cards Project.

Curing Credit Card Penalties

Congress is set to enact new legislation that will make credit cards safer and more fair for consumers. As lawmakers negotiate final details before President Obama can sign the bill, new analysis from the Pew Health Group highlights the importance of a safeguard found only in the Senate’s version of the law.

Pew Statement Applauding Senate Vote to Stop Many Deceptive Credit Card Practices

"The Senate today joined the House in coming together to pass smart, strong, bipartisan legislation that puts an end to many unfair and deceptive credit card practices. This is a tremendous victory for the millions of credit card carrying consumers, many of whom will be able to avoid hundreds, even thousands of dollars in unfair fees and interest rate hikes."

''Toxic Plastic''

"Congress is on the verge of passing legislation that would transform the way credit card companies and consumers interact."

''Credit Card Reform Confronts Multiple Consumer Complaints''

"Congress is expected to send credit card reform legislation to President Barack Obama for signing by the Memorial Day weekend."

Pew Statement Urging Senate to Protect Consumers from Deceptive Credit Card Practices

"The current economic crisis has made it clear that ignoring unfair and deceptive lending practices can hurt both family finances and our economy. Fortunately, the U.S. Senate has the opportunity this week to join the House in passing legislation to ensure credit card companies use safe, fair and transparent policies."

''The Credit-Card Wars''

"If you are among the 80 percent of Americans who use credit cards, you probably have your own horror story of interest rates raised without notice or credit lines reduced. A study sponsored by the Pew Charitable Trusts puts numbers to the anecdotes: Analyzing the practices of more than 400 different credit cards offered by the 12 largest companies, it found that 100 percent of them, every single credit card, has policies that harm consumers."

''About That New, 'Friendly' Consumer Contract''

"Out of the ashes of the financial crisis small flowers are beginning to bloom. One is an initiative in Washington—and among some companies—to curb ambiguous and sometimes abusive consumer contracts, especially in the credit-card industry. But before anyone celebrates the budding reforms, it's worth looking at how an earlier campaign to clean up customer agreements led right back to confusion and frustration."

Statement Applauding Bipartisan Passage of the Credit Cardholders' Bill of Rights

"The passage of the Credit Cardholders' Bill of Rights is a victory for all consumers and for credit card issuers who want to offer a safe and fair product."

''Rein in these card sharks''

"A survey last month by the Pew Charitable Trusts found that 93 percent of the nation's 663 million cardholder agreements allow the company to raise any interest rate at any time for any reason."

Statement Urging House to Pass the Credit Cardholders' Bill of Rights

"In this economic climate, allowing credit card issuers to continue to engage in unfair and deceptive practices is like letting a car company continue to sell cars we know have faulty brakes. Congress needs to act now to give consumers protection under the law from business practices that the Federal Reserve and our independent research have shown are widespread."

''Credit-Card Shocks Anger More Borrowers''

"The Pew Charitable Trusts, in calling for a policy of Safe Credit Card Standards this week, said that 100% of cards allowed the issuer to get paid back in a manner which, according to the Federal Reserve, "is likely to cause substantial monetary damage to consumers," said Nick Bourke, a manager at the institution."

''Obama gets tough on abuses by credit card industry''

"Obama said that while credit cards are an important source of liquidity for consumers and small businesses, 'The days of any time, any reason rate hikes and late fee traps have to end.'"

''Practices of Credit Card Companies Under Scrutiny''

"Executives of the nation's largest credit-card companies will meet with President Barack Obama at the White House on Thursday to discuss growing concerns about questionable practices in the industry."

Safe Credit Card Standards

Credit card companies have powers unique in the world of retail lending. After a consumer has agreed to the terms of a credit card account and used the card to make purchases or obtain cash advances, the card issuer may lawfully rewrite the agreement or demand a higher rate of interest, even on funds previously advanced. In a one-year period between 2007 and 2008, issuers used these powers to raise interest rates on nearly one quarter of cardholder accounts.

''Congress Considers Limits on Credit Card Companies''

"Democrats in Congress are taking a swipe at credit card issuers and their increasingly creative reasons for raising fees on strapped consumers, sparking a well-financed duel over how to crack down on alleged abuses."

''The Moment for Credit Card Reform''

"We all know what an uphill battle reforming abusive credit card practices has been. As a twenty-five year veteran of that fight, I know it as well as anyone. But this morning, the Senate took a big step up that mountain."

''New Study Cites 'unfair and deceptive' Credit Card Practices''

"A new report from the Pew Charitable Trusts details the extent of some of the “unfair and deceptive practices” by credit card companies."

Pew Releases Standards for Safe Credit Cards

The Pew Charitable Trusts’ Safe Credit Cards Project today released a set of standards designed to prevent deceptive and dangerous credit card practices and called for legislation to outlaw such practices.

Safe Credit Card Project Regulatory Comment:

In October 2008, the Pew Safe Credit Cards Project shared comments (PDF) based on its recent work on credit cards with the Federal Reserve. Select findings from the project—including information on credit card penalty re-pricing and analysis of credit cards in the market—were included.