New credit laws confine students

College students who want a credit card had better do so quickly, or they may need mom or dad to co-sign for them.

Under a new law effective Feb. 22, credit card companies will require clients 18 to 22 to have a co-signer, prove sufficient income or complete a certified financial literacy course.
Brandon Anaman, and SCC student says, “I think that if you are 18 then you are an adult.  You shouldn’t have to have a co-signer.”  Anaman thinks it would be more effective if credit card companies restricted students to low credit limits.
Other students feel differently.

Brittany Craver, SCC student, believes the new provision will reduce the number of naïve college-aged consumers who are unaware of the financial mess they could potentially be diving into.

The new law is just a part of the major changes credit companies have made recently.
It is now illegal for credit companies to tack on extra fees to customers paying monthly bills online or by telephone; two methods used often by the younger population.

Credit companies are now required to offer the option of a client being unable to go over their credit limit in order to avoid pricey overage fees.

Interest rates on an existing balance will now require a 60-day notice before they are raised and can no longer be increased as a consequence of a late payment on an unrelated account.

In the past, credit companies only had to alert consumers 14 days before a payment is due;  under the new law that number has been extended to 21.