RALEIGH, N.C., Feb. 3 - Nine months after being signed into law, on February 22 the second wave of pro-consumer credit card laws go into effect. In many ways the new legislation will protect consumers. But, there are potential pitfalls that consumers need to understand.

'Consumers who don't read their monthly statements could fall victim to changing terms and conditions," said Neill Ellington of CESI Debt Solutions. "Many people may be surprised because they don't know that changes are coming."
 

According to a national CESI Debt Solutions survey, more than one-third of Americans (36 percent) did not know changes are coming. Even those who are aware of the changes might not know what to watch for.
 

  Consumers should watch for:

  --  Over-the-limit fees: Credit card companies may no longer impose fees
      that would put the account over the set limit without cardholder
      consent to the processing of over-the-limit transactions. What may
      catch consumers off guard is that the option to opt-in to receive this
      "benefit" may be contained within a monthly statement or mailing, and
      may automatically take effect unless the cardholder opts out.

  --  Changing terms: Creditors no longer have the right to make significant
      changes to accounts without full disclosure in writing 45 days in
      advance of the change. If you read your credit card statements, you
      can prevent being blindsided by huge interest rates, increased
      requirements for minimum payments and fee increases.

  --  Co-signer requirements: Consumers under the age of 21 will be required
      to provide a co-signer on all credit card applications to assure debt
      will be repaid. According to a nationwide CESI survey, 87 percent of
      respondents reported that they would be "unwilling to co-sign for
      someone under the age of 21 to get a credit card," compared with 10
      percent who said they would co-sign and 3 percent that responded not
      applicable.*

"Co-signing can be a gamble. Are you comfortable with the risk associated with being responsible for another person's credit card use?" asked Ellington. "Another concern is that this may make young people who don't have a co-signer seek unconventional sources of lending like payday lenders or pawn shop loans."
 

*The CESI Debt Solutions survey was conducted by Public Policy Polling and surveyed 426 Americans during December 28-29, 2009.

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