New Card Act Brings Big Changes to Young Adults - DatelineCarolina

New Card Act Brings Big Changes to Young Adults

Posted:
The new Card Act will make it more difficult for anyone under 21 to obtain a credit card. The new Card Act will make it more difficult for anyone under 21 to obtain a credit card.

By Meredith Coulter

Posted 3:27 PM Feb. 23, 2010

Credit card companies are facing new, tougher federal laws that congress says will help consumers save money and understand the cards' requirements.  But it could also make it harder for young people to get one. 

The Credit Card Accountability Responsibility and Disclosure Act is supposed to make credit cards more consumer friendly.  The act regulates rate hikes, eliminates over-limit fees, and adds more transparency in how much the credit card actually costs.

The card also requires anyone under 21 to have a parent co-sign if they can not prove reliable income or a good credit history.  That's one change not welcomed by all card holders.

USC student Carrie Wall first started using a credit card at the age of 18.  She says it's a right that young adults should have

"I mean if you're an adult at 18, then you can have adult responsibilities like credit cards and getting cars and loans," says Wall.

Carrie We, a staff attorney at the South Carolina Department of Consumer Affairs, disagrees.  She thinks this is a great change.

"There were a lot of college students that would go and sign up just to get the free gift, and then you'd ask them, do you know what the interest rate it?  And they wouldn't know.  You'd ask them what the annual fee is, they'd say I don't know," said We.

Proponents say the card act will give consumers more protection and fewer fees. 

 

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