A more thorough explanation:

Credit Card Accountability Responsibility and Disclosure Act (2009)

The Credit Card Accountability Responsibility and Disclosure Act (2009), also known as the Credit CARD Act, is a federal law that prohibits credit card companies from using deceptive practices that can trap consumers in expensive debt.

Some of the deceptive practices that the Credit CARD Act prohibits include:

• Charging high penalty fees for late payments or exceeding credit limits
• Increasing interest rates on existing balances without notice
• Offering credit cards to people under 21 without their own income or a co-signer

For example, before the Credit CARD Act, credit card companies could charge consumers a $39 fee for being just one day late on a payment. This fee could be charged multiple times, making it difficult for consumers to pay off their debt. The Credit CARD Act limits penalty fees to a reasonable amount and requires credit card companies to give consumers more notice before increasing interest rates.

Another example is that credit card companies used to offer credit cards to college students without requiring proof of income or a co-signer. This led to many students accumulating large amounts of debt that they couldn't afford to pay back. The Credit CARD Act now requires credit card companies to verify a student's income or require a co-signer before offering them a credit card.

These examples illustrate how the Credit CARD Act protects consumers from deceptive practices that can lead to expensive debt and financial hardship.