Consumer Law

Harkness Paper on the Credit CARD Act and Seniors

By Jeff Sovern

Donna S. Harkness of Memphis has written The Credit Card Act of 2009: Welcome Relief or Too Little, Too Late for Vulnerable Seniors? 29 Banking and Financial Services Policy Report, No. 9, at 12. Here's the abstract:

As a group, the elderly have found themselves increasingly strapped for cash during the current economic downturn. While credit card debt grew 53% across all demographic groups during the 1990s, for senior citizens, aged 65 to 69, the growth was truly astronomical, representing a 200% increase. The Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009, which amended the federal Truth in Lending Act, has been described as a ?sweeping law? that is ?designed to permanently alter the relationship between consumers and their credit cards.? While the CARD Act did add a number of specific consumer protection provisions providing for enhanced consumer disclosures, creating specific protections for young consumers, addressing gift cards and other miscellaneous issues, none of the statute?s provisions are directly aimed at the elderly. This article examines the statute?s consumer protection and enhanced disclosure provisions that are relevant for purposes of protecting vulnerable senior citizens, and considers the extent to which the law will help older consumers to recognize and avoid credit use behaviors that are not in their best interests. In the final analysis, this article argues that while the CARD Act is a harbinger of a more consumer oriented direction for the credit card industry, its protections may come too late, and provide too little protection for the many senior citizens that have already fallen victim to excessive credit card fees and finance charges.

Full post as published by CL&P Blog on February 04, 2011 (boomark / email).