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Three months later, the interest soared to 79.9%. it's with first premier bank who says this extremely high interest rate card is important for people who default on loans. nearly 700,000 people have signed up for it and half of them carry balances. is this legal? joining me is ryan mack, author of living in the village and president of the optimum capital manage am. is it legal to have that high of annual percentage? >> the problem is it is legal. the card act of 2009 says they did have a 25% interest rate cap. however, that only implied on previous customers. that's retroactive. that doesn't...

That really important credit card reform called the card act or credit card responsible and disclosure act was supposed to protect customers from the deceptive practices of the credit card industry, but my next guest says it's misfired in a few places. president of consumer education at smart credit.com. so, look, if you don't have income, you can't get a new credit card. ed idea here was congress didn't want credit card companies giving out, handing out this plastic like kand to people who couldn't pay back. stay-at-homes moms if they want a credit card, they're shut out. >> they forget about...

Are the card in the household name. >> what if the spouse cosigns? okay? not always the best idea? tlanch >> that is a way around that particular card act. a c as far as strategy grade. okay because it gets you around the provision but locked in now two people liable for payment. if one files bankruptcy, they go through a divorce, which is a huge problem when you're trying to separate debts and liabilities, the lender is fine with it, you have two liable instead of one, but not the best strategy. >> what's the alternative, get a job, i guess? some sort of income? >> we have to be realistic. pe...

Those swipe fees are going to be looked at in the next eight months at a treasury. >> one big protection that passed through congress because of the card act was giving every consume 2er 1 days from the time you get your bill to the time you pay it before you get charged for late fees at all. some credit card are shortening billing cycles. >> they're not supposed to do that of course. if they're doing it with your card, go to bbb.org and file a complaint. the way they get around it kind of legitimately, the card act also says that if you are not open for business on weekends or holidays, then ...

To 20 minutes past the hour on this "cnn saturday morning." it's a holiday weekend and people will go out and use a credit card in one way or the other. maybe good news on the way for you. you don't like some of those abusive practices by credit card companies. well, the help is almost on the way. to help us this morning, financial analyst clyde is here with us. >> good morning. >> i'm all right. we're going to be doing a whole lot better when this thing goes into effect. the card act. remind people what this was when the president signed it, last year. >> last year in may, the card act was th...