Consumer Law

The New Credit Card Law Hits College Campuses

By Brian Wolfman

Today's Washington Post explains here that credit card reform is hitting college campuses. As we have discussed, the 2009 credit card reform legislation imposes restrictions on the marketing of credit cards to adults between ages 18 and 21, which is unusual, given that the law generally treats adults alike. Title III of the new legislation (sections 301 to 305) bars providing a credit card to a person under 21 unless that person has an adult co-signer willing to assume liability for debts incurred on the card or can independently meet certain income requirements. In addition, colleges are prohibited from offering students gifts as inducements to apply for credit. The schools must also disclose their financial relationships with credit card issuers. The Post article suggests that the legislation has changed industry practices; for example, Bank of America had ended on-campus marketing altogether.

Full post as published by CL&P Blog on August 27, 2010 (boomark / email).