The Credit Card Act and Consumer Debt Structure

We investigate whether the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009 influenced debt structure consumers. By structure, we mean proportion total available credit from cards for each consumer.The act enhances disclosures contractual related information restricts card issuers’ ability to raise interest rates or charge late over-limit fees, primarily affecting non-prime borrowers. Using history via Federal Reserve Bank New York/Equifax Consumer Panel during 2006–2016, find that average ratio limit on consumer declined borrowers in comparison prime after introduction CARD Act. The decline did not occur before bill was first introduced Congress; it took place afterward continued through end our sample period. results suggest likely had an adverse effect