Question

The Credit Card Responsibility Accountability and Disclosure Act of 2009 did very little to protect what from increases in credit card interest rates and fees?

a) Individuals with high credit scores
b) College students
c) Small businesses
d) Credit card companies

Answer 1

The Credit Card Responsibility Accountability and Disclosure Act of 2009 offered limited protection for small businesses against high credit card interest rates and fees.

Step-by-step explanation:

The Credit Card Responsibility Accountability and Disclosure Act of 2009 was aimed at protecting consumers, but it did very little to protect small businesses from increases in credit card interest rates and fees.

Small businesses often rely on credit cards for financing and can face significant financial stress due to high interest rates and fees.

Furthermore, credit card companies justify higher rates to cover losses from cardholders who fail to pay on time.

Answer 2

a) Individuals with high credit scores

Explanation:

The Credit Card Responsibility Accountability and Disclosure Act of 2009, commonly known as the Credit CARD Act, did very little to protect individuals with high credit scores from increases in credit card interest rates and fees. The legislation primarily aimed at addressing unfair practices in the credit card industry, enhancing consumer protections, and promoting transparency. While it provided some safeguards against arbitrary rate hikes and certain fee structures, individuals with high credit scores were generally already in a more favorable position and, therefore, experienced fewer adverse effects compared to other groups.

The act introduced measures such as requiring credit card companies to give a 45-day notice before increasing interest rates and prohibiting retroactive rate increases on existing balances. These provisions aimed to protect consumers, including those with high credit scores, from sudden and unjustified interest rate hikes. However, the act primarily focused on addressing practices that were more detrimental to individuals with lower credit scores who were often subjected to predatory lending practices and excessive fees. Therefore, while individuals with high credit scores did benefit to some extent, the act's main impact was on providing greater protections to consumers with less favorable credit profiles.

It's important to note that while the Credit CARD Act enhanced consumer protections, individuals, regardless of their credit scores, should remain vigilant about understanding the terms and conditions of their credit agreements to make informed financial decisions.