Marketing to consumers under the age of 21 and issuing them with credit cards is prohibited unless the consumer can provide proof that they are able to pay off the card.
Philadelphia, PA (PRWEB) May 12, 2013
Credit Card Consolidation Loan expresses a strong support for The Credit Card Act of 2009 - specifically the part that regulates the issuance of credit cards to unemployed and young consumers. The whole act seeks to address the growing credit card debt problem in the country and the reforms enacted should help pave the way for it.
Based on the National Association of Attorney Generals or NAAG website, one of the prohibitions of the act involves “irresponsible and aggressive marketing to young consumers.” Marketing to consumers under the age of 21 and issuing them with credit cards is prohibited unless the consumer can provide proof that they are able to pay off the card. If not, a co-signer is usually required.
As honorable and logical as this rule may be, GoErie.com, the online version of Erie Times-News, reported that it caused problems for graduates. The website published an article on May 5, 2013 entitled “Grads Find Credit Cards Hard To Get.” The publication stated that getting credit cards used to be easy because companies used to set up application booths in campuses. The application used to have very lenient requirements. But with the enactment of the Credit Card Act of 2009, this practice ceased to happen.
Now, graduates cannot be issued cards unless they already have a job - thus the means to pay off the monthly dues. If not for their own job, co-signers must be present. The co-signer can be a parent or guardian - anyone who can vouch for the monthly payments on the credit card.
The problems that this caused involves the inability of graduates to move out of their parents’ homes or to buy furniture and support themselves as they look for a job. Without a credit card to be used on purchases, their growth seems to be stunted.
Despite the obvious difficulties for the young consumers, Credit Card Consolidation Loan supports the “No Work, No Card” rule that is implemented by this Act. The website believes that the personal inability to pay off the monthly dues means the consumer should not have the right to own a card in the first place. That could just lead to a lot of unnecessary problems in the future. The lack of work means there is no cash. The lack of cash means the presence of credit cards will be abused.
Those affected may also argue that they need credit cards to build up their credit score but fact remains that having no job will make that goal unattainable as well. This Act hopes to lessen the debt problems of students graduating with so much student loans to begin with. If not the student loans, at least the credit card debt can be helped.
Credit Card Consolidation Loan is a company providing consumers with loan options to help them get out of credit card debt. To know more about what the company can do, visit their website or call 888-315-0599.