Consumers Know About Increased Card Protections but Uncertain of Details
A majority of consumers are aware that Congress passed credit card protections last year but not as many are aware of what those protections actually are, according to survey conducted jointly by CUNA and the Consumer Federation of America.
The two organizations revealed their survey results on a press call today. The survey found that a majority of consumers surveyed (61%) knew that Congress passed consumer protection laws last year, 65% of consumers surveyed did not know they take effect on Feb. 22 or what the protections actually prohibit.
"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 that the new law caps late fees at $35, while 31% believe it caps interest rates at 20%.
On the positive side, the survey found that consumers were more aware of their card terms and when they find them to be disadvantageous, are prepared to take steps to remediate the situation.
"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 CUNA Chief Economist Bill Hampel.