The Effects of CARD Act Disclosures on Consumers’ Use of Credit Cards

This study uses a unique data source on consumer credit card usage to examine the impact of billing disclosure changes mandated by the Credit Card Accountability, Responsibility and Disclosure (CARD) Act on consumers' debt payment behaviors. Data are from the Ohio State University's Consumer Finance Monthly, which interviews a nationally representative sample of 300 to 500 households each month. The survey provides detailed data on credit card ownership, credit terms, usage, and payment behaviors, along with data on employment, income, net worth, and demographics. Estimates using data from June 2006 through December 2011 suggest that the CARD Act disclosures were effective in inducing consumers to increase the amount of credit card debt paid off each month, with the strongest effects seen in the proportion of consumers who pay off balances in full each month. Among credit card users who continue to carry debt, there is minimal evidence of behavior changes due to the new disclosures