CARD Act ban praised by parents of young adults
The Credit Card Accountability, Responsibility and Disclosure Act now prevents young adults under the age of 21 from obtaining credit without a co-signer or the financial means to repay the debt. While critics of the legislation claim that this holds teens back from building a credit history, an important step in personal financing, the Washington Post says that it has brought relief to parents across the country.
While college students rely on credit for expenses such as textbooks and meals, many find it difficult to stay on top of monthly payments. As interest takes its toll on the card holder, students quickly find themselves in debt.
“Their goal is to hook you on credit,” consumer program director of the advocacy group U.S. PIRG Ed Mierzwinski told the paper.
Under the CARD Act, credit card issuers can no longer solicit students on college campuses and entice them into applying with freebies. Several universities across the country have also taken the extra step and banned issuer ads on campus. Debt accrued from credit cards can result in lasting credit score damage for the consumer at hand.