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In the News: New Credit Card Legislation
On May 22, 2009, President Obama signed the Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009. Scheduled to be fully implemented February 2010, the CARD Act will likely affect every person in the U.S. who has or is planning on getting a credit card.
Not only does this legislation change the laws that financial institutions have to follow, it also encourages greater responsibility for consumers and their spending habits.
What is in the new legislation?
The CARD Act stipulates that many unfair lending practices end. This includes, but isn’t limited to:
- Banning unfair rate increases
- Preventing unfair fee traps
- Using plain sight/plain language disclosures
- Holding institutions and consumers accountable
- Protecting students and young adults
How will it affect you?
One of the biggest ways the CARD Act will protect students and young adults is by imposing age requirements for obtaining a new credit card. The current practice is allowing anybody over the age of 18 to apply for a credit card. With the passing of the CARD Act, people under the age of 21 will need a co-signer on their credit application—a parent, guardian or other individual 21 years or older who will take responsibility for the debt in the event the card holder can’t pay their debt. If the applicant has proof they have independent means of repaying any credit extended, they can apply without a co-signer.
Our Visa® Student Credit Card
UW Credit Union has been the trusted financial institution serving campus communities for over 75 years. Our practices are already in compliance with much of this new legislation because our members’ best interest comes first.
We know that our Visa® Student Credit Card is a great way for you to start building credit history with a responsible credit limit. You won’t be charged an annual fee and our interest rates are low.
We also offer free financial education in addition to a student-friendly card. Our mission has always been to provide our college-age members with the building blocks to begin a life of financial responsibility.
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