WASHINGTON-A recent survey commissioned by the Consumer Federation of America (CFA) and CUNA revealed that, while most consumers (61%) are aware there are new credit card protections, most (65%) don't know they take effect later this month and don't understand the specific protections Congress approved last year.
"We are especially concerned that some consumers will base their future credit card use on protections that don't exist," said CFA Executive Director Stephen Brobeck. He noted, for example, that 36% of credit card users think the new law caps late fees at $35, while 31% believe it caps interest rates at 20%. The new law does neither.
The survey also revealed that a large majority of consumers who have noticed disadvantageous changes in the terms of their most frequently used credit card are taking or plan to take some kind of remedial action, most often using the card less frequently (69%) and/or paying off the remaining balance faster (62%).
"We are encouraged that 85% of consumers reported planning or taking action when aware of a rate hike, new fee, lower credit limit, fewer rewards or other disadvantageous terms," said Bill Hampel, CUNA's chief economist.
Most provisions of the credit card law, which was approved by Congress and signed into law by President Obama last year, will be implemented Feb. 22. The survey was conducted for CFA and CUNA by Opinion Research Corporation.
