![]() The Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009 added consumer protection in the form of limitations on credit card interest rates, fees and charges placed on cardholders’ accounts.The Fair Debt Collection Practices Act of 1977 amended the Consumer Credit Protection Act to prohibit predatory debt collection practices and rework the debtor’s bill of rights.Also in 1974, the Equal Credit Opportunity Act was passed to prevent lenders from discriminating against any applicant based on gender, race, marital status, national origin or religion.The Fair Credit Billing Act of 1974 amended the Truth in Lending Act to rein in abusive billing practices and enable consumers to dispute billing errors.The Unsolicited Credit Card Act of 1970 prohibited issuers from sending active cards to customers who hadn’t requested them.The Fair Credit Reporting Act of 1970 restricted the collection and use of credit report data.Regulation and litigationĪs the popularity of credit cards exploded in the 1970s, so did legislation aimed at addressing consumer complaints against this fast-growing industry. While banks initially had to choose between the Visa and Mastercard association, changes to association bylaws have since allowed them to join both associations and issue both types of cards to their customers. Unlike their nonbank competitors, the bank card associations operate in an “open-loop” system that requires interbank cooperation, as well as transfers of funds. Present-day Mastercard competes directly with a similar Visa organization, both of which are run by boards comprised primarily of current and former high-level executives from major corporations. It would be renamed Visa a decade later to acknowledge its growing international presence.Īlso in 1966, a group of California banks formed the Interbank Card Association (ITC), which would soon issue the nation’s second major bank card, Mastercard. In 1966, BankAmericard went national to become the nation’s first licensed general-purpose credit card. Instead of users having to settle their bill in full each month, bank cards would truly become credit cards by offering revolving credit, which allowed cardholders to carry their monthly balance forward for a nominal finance charge.īank of America was first out of the gate in 1958, mailing unsolicited credit cards to select California markets. Major banks would soon launch their own consumer cards, but with a welcome twist. The invention of bank cards and revolving credit ![]() 1958: American Express launched its first credit card made of cardboard, followed shortly by the first plastic credit card in 1959.He proposed the idea of a small cardboard card, which members could use like a charge card and pay the bill in full every month. 1950: The Diners Club Card debuted when Frank McNamara forgot his wallet and couldn’t pay for a business dinner. ![]() Customer purchases were forwarded to his bank and merchants were reimbursed later in what was known as the “closed-loop system.”
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