Some Consumers Still Unaware About The Credit CARD Act

The Credit CARD Act of 2009 has been getting a lot of mileage in the media lately. That is no surprise considering the huge impact that this particular set of legislation will bring to the credit industry. The law is also targeting a particularly sensitive area in consumer affairs making it a very high profile law. Still, that does not mean everyone is keeping track of it. In fact, a startling number of consumers are still unaware of what the act is and, much more worrying, what it aims to do.

According to Survey Sampling International, based in Shelton, less than half of the consumers in the United States know about the Credit CARD Act, much less that it is about to take effect on February 22 this year. The survey took a poll of 1,000 online respondents who were 18 years of age or above. According to the survey, only 48% of of the respondents said that they knew about the credit card protection legislation that Congress passed in May of 2009.

The numbers are worrying considering that the main reason the Credit CARD Act was created was to protect the interests of consumers who had been severely abused and taken advantage of by credit card companies. If these same consumers are not aware of the Credit CARD Act, there is a high possibility that they are not aware either of what highly questionable activities the credit card companies have been doing to earn profits from them.

One of the major regulations that the Credit CARD Act carries requires credit card companies to give advance notice to consumers if they plan to change any of their credit card rate terms. This regulation is very useful as it will keep consumers informed of any term changes with their credit cards and help them respond accordingly to these changes. In fact, the regulation also ensures that consumers have the option to opt out of any changes, though this will usually mean that they have to give up their credit cards.

However, the regulation will only work for consumers who actually keep an eye on their credit cards. Consumers have to read their credit card’s notices, usually coming in through the mail, to take advantage of what the regulation offers. Unfortunately, it is often the case that consumers skip reading their credit card mail when they arrive. This particularly bad practice is doubly devastating now when credit card companies will be introducing numerous changes to keep up with the new regulations. Credit card holders cannot expect these changes to be consumer friendly either, just because of the new Credit CARD Act.