Although relief will not be immediate, the Credit Card Act is seen as beneficial for American cardholders in the long run.
The Justice Department already made pro-consumer moves through the Credit Card Act when it recently opposed high rates and charges that Master Card and Visa were imposing on their credit cardholders. Establishing how unfair the fees were had been key to the Justice Department's role in controlling rates and charges.
The cardholders are relieved to know that their long-standing concerns on high rates and charges that they are often unaware of had already been responded to by the Justice Department. Consumers say that at least, they wouldn's have to argue their way through their banks anymore at the risk of them shunning their credit cards even if they recognize its importance given their different circumstances.
Moreover, the consumers no longer need to worry about losing their credit to high processing fees whenever they make a purchase in the market because the Justice Department already acted upon an agreement with merchants mandating the latter to apply discounts to transactions with less processing charges. This is expected to be a practice among merchants should they have a currently standardized processing fee to all their consumers.
For American Express and Dinners Club, on the other hand, discounts on purchases with low processing charges would have to be carefully planned given that they already have low processing fees for their consumers.
The Credit Card Act also requires credit card companies to subject themselves to transparency measures in relation to the amount they pay different colleges and universities to gain access to their market. This means revealing the amount they pay to the sector in their bid at the right to issue credit cards.
The Federal Reserve is tasked at providing data on annual amounts paid by the credit card companies to colleges and universities. This is a requirement in response to the apparent interest of credit card companies in the students and alumni of colleges and universities for the longest time now. How this might benefit credit cardholders is in terms of knowing whether the company issuing your credit card is responsible enough to pay off on their dues as they access the market.
Being aware of the major credit companies, with the strongest base in issuing credit cards and holding the majority of credit accounts in the market, will also make you informed decisions on what to choose for you to stabilize your credit in the long run.
With these requirements of the Credit Card Act, consumers are still expected to accept beneficial terms of credit.