Will the Credit CARD Act save Cardholders Billions?

With the long wait of the main phase of the Credit CARD Act almost at an end, many people have probably came to wonder how the new law will effect them in a positive way. While no one knows for sure, many researchers have performed studies to try to find the answer.

Now one researcher is giving an answer that many (if not all) will hope is accurate. According to a recent article from Pewtrusts.org entitled "Pew Finds Credit CARD Act Will Save Consumers Billions", researchers are estimating saving up to $10 billion a year based on fees alone. This is because when the second phase is implemented, credit card issuers will be forced to make major changes across the board and will no longer be able to charge excessive penalties for many of the things they had in the past. Instead they will have to give exact reasoning for increases on things such as certain fees, and give the consumer ample time to make payments.

After reading the article, when it comes to the estimated savings concerning the fees the news is beyond great if it is correct, but in my opinion the question of real savings focuses more on interest rates. Since the bill was first created, cardholders have been hit hard in several different ways that have all ended with the consumer paying more. Even with the requirement that credit card issuer have of lowering the interest rate for consumers in good standing, many cardholders will still be well above the initial rate they may have had before interest rates skyrocketed.