Credit card programs were largely unaffected even as the Credit Card Accountability, Responsibility and Disclosure Act were implemented. If anything, the credit card programs have only seen a surge in the number of people looking out for reliable and trustworthy credit cards.
An industry executive commented that the credit card unions are seeing least impact made on them directly since they are not strictly going by the CARD Act's regulations. They had to, however, abide by the disclosure regulations which saw some changes being made with respect to the card holder statements.
Kevin Moyle, assistant vice president for the USE Credit Union at San Diego gave his opinion of the situation stating, "We did have to spend little time thinking about how to change the disclosures, but we have some pretty smart people and they are able to figure it out".
As per the statistics of NCUA, as many as 16.000 accounts carry balances from last year and it accounts to an overall portfolio of $55,000.
In an effort to revamp its credit statement to comply with CARD Act requirements, the card's benefits have been highlighted. This has also made the bank statements clearer and easier for customers to understand. Taking the opinion of the majority, Moyle said that they have arrived at a decision to keep the interest rates fixed after the initial introductory rates on the new cards. The decision to levy a fixed rate of interest has found appreciation from many.
Though members have been very forthcoming with their feedback since the CARD Act, there has been a mere 1%-2% increase with respect to card accounts. The charge-off rate too showed variations which dropped from 11% in the last quarter of 2009 to 7.5% in the early 2010.
Heartland Credit Union, in Madison, also experienced a similar situation as it experienced minimal impact form the CARD Act on the credit card portfolio as per information provided by John Wagner, vice president of lending for the credit union.
As another change, Heartland too stopped charging the customers for moving above the limits. Wagner reported that in spite of this step, they faced a minimal reduction in their income. The change came in Heartland moving to variable-rate card portfolio though initially it was at a fixed rate portfolio.
Wagner said, "We weren't really pleased to do it, but we calculated that to meet our costs and protect ourselves if interest rates rose, we were going to have significantly raise those rates".