Card Issuers Finding Ways To Students
Despite plans to curb banks from supplying credit cards to college students, many issuers are finding ways around the law.
Action taken by the Credit Card Accountability, Responsibility and Disclosure Act of 2009 was significant in attempting to prevent students from receiving credit who have no way of funding an account, according to The Wall Street Journal. A large amount of technicalities are still prevalent, and banks regularly toe the line.
The Act stops credit card issuers from promoting accounts on campus and giving students items to entice them to sign up, according to the news source. The legislation does not prevent banks from giving coupons or bonuses to young people.
In addition, the lack of clarity on what "sufficient income" is can be troublesome, the news source reported. Students under the age of 21 are not specifically instructed on how to show they have funds to pay for a credit card. In addition, young people can still have co-signers, circumventing the restrictions altogether.
Parents of college students who co-sign a card should be aware of the penalties attached to a child that gets into credit card debt in college, the news source added.