CARD Act Takes Effect on the Nation
Paul C. Kadzielski
On March 2nd, 2010 the CARD Act went into full effect nationwide. CARD was signed into law on May 22nd of 2009 by President Barack Obama. The CARD Act has made many changes to the way credit card companies operate. It prohibits anyone under the age of 21 from signing up for a credit card without a co-signer unless they can prove they are financially independent. It also forces creditors and Universities to make their contracts for credit companies to advertise on college campuses available to the general public. Students can expect to see less credit card companies advertising on campus and less gimmicks designed to get students to sign up for cards. Your credit card company will start sending out bills earlier on the same date every month and will have to inform the card holder how much money and how long it will take to pay off your bill.
- CARD Act: The Credit Card Accountability, Responsibility and Disclosure Act was signed into law in a reaction to the 2008-2009 financial crisis. It places more requirements on credit companies to be clearer about the way they do business.
- Co-Signer: A person who guarantees that you will pay your bill and signs the credit contract with you. If you don't pay your bill it goes on their record as well as yours and they can be forced to pay the bill.
- Argument for the CARD Act: Creditors have preyed on young people and new card holders by making confusing regulations for years and CARD will give power back to the card holder by making sure that credit companies use fair and reasonable business practices.
- Argument against the CARD Act: Businesses know what is best for themselves, not the government. These new regulations will decrease the amount of money creditors make and force them to lay people off, close offices, and raise rates as well as fees. It will also encourage credit card companies to make it harder to get a credit card.
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