Below is an excerpt written by Teresa Dixon Murray of the Cleveland Ohio Business News on the Credit CARD Act that goes into effect tomorrow. To read the article in full, click here.
“Companies won’t be allowed to promote credit cards on college campuses or to send pre-screened card approval letters to anyone under 21.
Even if young adults hear about credit cards through other sources, they won’t be able to open an account unless they can document they have income to repay the debt. Otherwise, they’ll need a cosigner.
Jerry Welch, chief executive officer of nFinanSe Inc. of Florida, whose company sells reloadable debit cards, expects an explosion in his business, in part from young adults who will have difficulty getting credit cards. The college population alone is 18 million, he said.”
