Newly available data show CRL's initial research findings from earlier this year remain true: Since the Credit CARD Act of 2009 was passed, prices have become more transparent, with no constriction of credit and no increase in the interest rates consumers pay. See the update and original report: http://qa.crl.w.lmdagency.net/research-publication/credit-card-clarity.
The updated information also provides fresh evidence that, prior to the CARD Act, pricing confused consumers, which is why the law was indeed needed. Transparency is important because competition works and markets function properly only when prices are known. A key problem leading to the financial crisis, for example was the prevalence of teaser rates and confusing payment plans that drew families into loans that were deceptively priced and ultimately unaffordable. Honest lenders who transparently priced their products lost in a race to the bottom because their products looked worse at first blush.
As the CARD act shows, common-sense financial reforms make markets more competitive, benefiting everyone.
For more information: Kathleen Day at (202) 349-1871 or kathleen.day@responsiblelending.org; Ginna Green at (510) 379-5513 or ginna.green@responsiblelending.org; or Charlene Crowell at (919) 313-8523 or charlene.crowell@responsiblelending.org.