Credit Card News

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Mierzwinski relates implications of the card act

Mierzwinski relates implications of the card act

By
Add to Favorites:
Mierzwinski relates implications of the card act

US PIRG consumer program director Ed Mierzwinski related recently the implications of the new CARD Act. In focusing on one of its provisions, Mierzwinski says that the CARD act mandates credit card companies to fully disclose the amount they give to different colleges and universities across the country in exchange for gaining access to the market of students, alumni, and organizations.


This is of particular interest to Mierzwinski because the matter involves individuals aged 21 and below who are less financially stable than their older counterparts. Mierzwinski states that this is indeed a vulnerable market, those which can be easily attracted by the marketing techniques of the credit card companies (given the high costs of their education expenses) but also the ones who may be less capable of high risk financial management.


This is why Mierzwinski says that the Federal Reserve Board’s reports can be encouraging when it comes to limiting what the credit card industry can do in the colleges and universities and in terms of educating vulnerable markets on their decisions.


Mierzwinski says that the mandate for credit card companies to submit contracts for Federal Reserve transparency regulations and annual monitoring has, for its effect, decreased affinity card programs between colleges or universities and the credit card industries.


Although the decrease in the number of such programs can be considered rather rapid by looking at figures for two previous months, the full extent of the effect of the CARD Act can be better analyzed when we compare the decrease this year to the figures for exactly the same period next year.


For now, Mierzwinski attributes the decrease in such programs to the existing external pressures by concerned consumer and student groups and organizations.


Mierzwinski opines that the CARD Act eliminates deals and contracts which had previously been averse to public scrutiny. As an effect, contracts either gear towards better directions or are removed from the market altogether.


For Mierzwinski, the credit cards should offer to the student’s opportunities for improving good credit scores early on in order to enable young consumers to avail of car loans and mortgages once they’re already absorbed in the job industries.


That purpose, he adds, can be better served by the CARD Act as it obliges credit card companies to be more transparent in their dealings with their market.


Mierzwinski concludes that in the long run, we shall see how the CARD act can change the practices in the credit card industry.

Add to Favorites:

Related News:

Alaska Airlines Expands in Texas Market

By Dar Dowling, Posted: April 24, 2017

Alaska Airlines has its sights set on growing its presence in Texas and will be adding more service into Dallas Love Field to its roster. Continue reading
Hackers Still Hard at Work

By Dar Dowling, Posted: April 21, 2017

Shopping online or with mobile devices is gaining in popularity with consumers, whether they are looking for trending fashion gear or are making summertime travel plans. Continue reading
Consumers Want More from Their Credit Cards

By Dar Dowling, Posted: April 20, 2017

Credit cards are definitely trending with consumers according to a new study by Harris Polls, and they know what benefits they want to come along with their cards, including no annual fees and reduced or waived late fees. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
You could turn $200 into $400 with Cashback Match™. Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
Unlimited 1.5x rewards on every purchase, every day. For every $1 you spend, you earn 1.5x Miles.
For Excellent, Good Credit
No Annual Fee
For Bad Credit