One of the most valuable lessons that young people need is never adequately given. We help explain essential money skills that all adults need to know.

Effective February 22, 2010 credit card companies will be required to follow the guidelines established by the Credit Card Act of 2009

Below is a brief summary of some of the key changes that will impact college students and their parents.

Restrictions on Marketing to College Students:

In exchange for applying for credit, card companies are not permitted to give gifts (i.e. T-shirts, pizzas, mugs, etc) to college students on or near campus grounds

Increased Parental Involvement:

Cards cannot be given to those under 21 unless they get an adult co-signer, 
OR they provide proof that they have the ability (i.e. proof of sufficient income) to repay the debt.

Card companies cannot send prescreened card offers to anyone under 21, unless they have agreed to get card offers.

Card companies cannot increase the credit limit on co-signed credit cards held by college students under 21 unless they have gotten written permission from the co-signer.

Limits on penalties and fees

Over limit fees may not be charged unless the card user has provided permission for transaction over their credit limit.

Increased Disclosures:

Card companies will now be required to disclose the following on the card statement:

-the length of time, and the total dollar amount of interest that would be needed to repay the card balance, if only the minimum required monthly payment.

-the monthly payment amount needed to pay off the the total balance in 36 months
- a phone number to call for credit counseling services.

Card statements need to clearly disclose the required due date, late payment charge, and any late payment penalty rate.

No related posts

Comments

RSS feed | Trackback URI

Comments »