Most American college students use credit cards. However, many young people don’t always handle them properly, and often face late fees, increased rates, and high balances. Many of the problems are due to a lack of knowledge, or simply not handling cards responsibly. Although many of these problems are the result of bad habits of young adults, consumer groups believe many of these issues are the result of practices of credit card companies. To help address this issue, Congress passed new laws to restrict the ways card companies handle credit card arrangements with consumers.
Credit card companies will be required to follow the guidelines:
The changes generally require credit card companies:
-to increase disclosures to card holders.
-to provide more lead time or advance notice when changing terms.
-to limit their marketing activities on or near college campuses.
-to require increased parental involvement in credit card activities of individuals under 21.
More detail of these new requirements and information on money issues affecting young adults and their parents are available on the website MoneyManagement101.org