Credit Card Law Changes
President Obama recently signed into law several new changes to credit card lending.
Here are some things that stand out to me:
- 80% of American households have a credit card – Half of those carry a balance
- "Some get in over their heads by not using their heads." – President Obama
- People under 21 won't be able to obtain a credit card without a job or a co-signer
- Customer must be over 60 days late before rates can be increased on existing balances
- Consumers must receive a 45 day notice and explanation before interest rates can be increased
- There are more than 700 million credit cards in circulation in the United States – more than two cards for every man, woman, and child
You can read about it HERE. (Thanks to Robin for the link)
Your thoughts?
I’m not sure what I think about it yet. It seems like what they have changed are good changes. And yet the article does point out some potential negative consequences so the credit card companies can still make their money. Is requiring a parent to co-sign a credit card for someone really going to stop them from applying? Or is that just pushing the debt risk from the younger person to the parent?
I also found the last paragraph in the article to be a little (ok..a lot) hypocritical on Obama’s (or any politician’s) part.
“So we’re not going to give people a free pass, and we expect consumers to live within their means and pay what they owe,” Obama said. “But we also expect financial institutions to act with the same sense of responsibility that the American people aspire to in their own lives.”
How does anyone in a Government that borrows like ours does have the right to say that?
I love this one!
People under 21 won’t be able to obtain a credit card without a job or a co-signer.
I am worried about my son who will be off to college in a year. He will be fresh meat for the cc vultures. And since he is a teenager, you know how they “know” everything, I don’t think he will heed my warnings.
What I think most people don’t realize is that credit cards are a PERSONAL LOAN. Never thought about it that way before I was teaching a program called BIZ TOWN by Jr. Achievement to 5th graders. If you knew credit cards were equivalent to a personal loan, you just might treat the card a wee bit different.