We analyze the effectiveness of consumer financial regulation by considering the 2009
Credit Card Accountability Responsibility and Disclosure (CARD) Act. We use a panel data
set covering 160 million credit card accounts and a difference-in-differences research
design that compares changes in outcomes over time for consumer credit cards, which were
subject to the regulations, to changes for small business credit cards, which the law did not
cover. We estimate that regulatory limits on credit card fees reduced overall borrowing costs …

Card Accountability Responsibility and Disclosure (CARD) Act in the United States. Using a
unique panel data set covering over 150 million credit card accounts, we find that regulatory
limits on credit card fees reduced overall borrowing costs to consumers by an annualized
2.8% of average daily balances, with a decline of more than 10% for consumers with the
lowest FICO scores. Consistent with a model of low fee salience and limited market
competition, we find no evidence of an offsetting increase in interest charges or a reduction …