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Cuomo weeds out credit card companies from campuses
By Oscar Monfort on Sep 4th, 2010
This past week, New York Attorney General Andrew Cuomo mailed letters to colleges and universities across the state, asking them to submit any contracts they have with credit card issuers. The Credit Card Accountability, Responsibility and Disclosure Act that went into full effect on August 22 put tighter restrictions on young adults looking to apply for credit.
Those under the age of 21 must have an adult co-signer or the financial means to repay the debt in order to obtain a card under the new legislation. Bloomberg notes that prior to the CARD Act, credit card companies had been heavily criticized for targeting teens and enticing them to apply with freebies. Many had solicited college students directly on campus.
"As the new school year begins, we want to make sure that colleges and universities are doing all that they can to help students avoid financial dangers," Cuomo told Bloomberg.
Young adults who have already obtained credit but are finding difficult paying off the debt can consider consolidation. By combining debt and taking out a loan with a lower interest rate, borrowers can reduce their monthly expenses and put more money toward savings.
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