On the first anniversary of the CARD Act, surveys by the newly empowered Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) found that late fees, over-limit fees and interest rate hikes have been reduced substantially.

Most proponents of the law say transparency has been enhanced, and that led to lots of cheering from consumer advocates and even some bank executives, reports The Hill. Elizabeth Warren, who is helping to set up the CFPB, says the law is working.

But there are some downsides to this sort of progress. For one thing, the net effect may have been to reduce credit to a lot of consumers, some of whom could sorely use it. There has also been a move to find other sources of revenue, which means that consumers have also had to get used to higher fees in other areas.

And there are signs that banks are indeed finding offsets. Some have raised the minimum amount due on cards balances; recall the fee on late payments cannot exceed the minimum amount due. Banks are also exploring ways to legally hike rates. So, the banks certainly are not capitulating without a fight. In the end, what will really help is an improving economy.

For more:
- here's the article from The Hill

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