Credit Card

Satisfactory Essays
#99687066 2nd period

Credit card

The credit card act of 2009 is helping young adult and protecting them. The credit card act was sign into law on May 2, 2009. Before the credit card act sign into law, young adult from 18-21 years of ages are getting attack by the bank industries, what the bank do is sending out thousand of offer like low interest rate and get the young adult and student hook on the system and then rise the interest later on. Most of those young adults end up in a big debt. The credit card act restrict all of that, the act will protect young adult from the banking industries.

The new law that changes the rules of the banking industries is the credit card act. What the act do are; card issuers generally can’t increase the annual percentage rate with out a good reason, giving cardholders more time to pay monthly credit card bills. The laws also include several measures aimed at protecting young consumers and college students. Young adult can’t sign up for a credit card unless they have a job and be able to paid monthly payment or have a co-signer. Some credit card companies offer students token gifts, pizza or free meats just for applying. But the credit card act will outlaw this practice. ( a special guide… internet).

Some peoples believe that the new provisions relating to consumers under the age of 21 are both unfair and unwise. They argue that since 18 is the age of majority, individual age 18-20 should have the same rights under the law as peoples 21 and over. I’m disagree the bank industries should only offer credit card to young that have a stable income and be able to pay monthly payment. The credit card act state that, “companies are restricted from making prescreened offers of credit to someone under 21.” ( New law protect… internet) this is a great thing because back then bank be mailing thousand

You May Also Find These Documents Helpful

  • Powerful Essays

    The CARD act of 2009, restricted credit card companies from raising interest rates on existing balances. It also prevented credit card companies from charging a fee for exceeding their borrowing limit unless these customers had explicitly requested this service. It also made it more difficult for credit card companies to target those under 21 years of age- since they now had to provide either proof of parental consent or proof of financial capability.…

    • 5850 Words
    • 24 Pages
    Powerful Essays
  • Good Essays

    At the age of eighteen, a teenager is given the rights of any adult automatically with the exception of being allowed to drink alcohol and a few other minor things. Eighteen year olds are given the right to vote, to sign a contract in their name, to enlist in the armed forces without parental consent, to apply for credit under you’re their own name, get married to their significant other, and etc. Having the right to do these things makes it clear that an eighteen year old is mature enough to make life altering decisions. Many people ask, “Why are these ‘adults’ not allowed to drink alcohol until the age of twenty one?” People believe that the answer to this question is that having the minimum drinking age at twenty one will save lives and prevent people under the age of twenty one from drinking. If this law is actually doing what it was expected to do, anyone can look and see if raising the drinking age to twenty one helped any of the problems stated…

    • 920 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Thesis Statements

    • 544 Words
    • 3 Pages

    Credit card companies are continuously appearing on college campuses around the world. Their main target, of course, is naïve students. These companies are there to pick up students at their worst and most vulnerable moments. Some students that feel short of cash are very tempted to apply for these buy now, pay later agreements. Once a student is approved for credit, companies usually offer them very generous credit lines. At their tender ages, no student is going to decline the offer. Most students, at this point in their lives, do not have jobs and are setting themselves up for a world of failure. Students that have no source of income are unable to make payments and will incur late fees that can be astronomical. By this time, their credit scores are being impacted tremendously. This is where the companies begin to make their money, and could care less about a student who has been stretched beyond his or her means. The potential outcome is irreversible credit damage to the young, defenseless student.…

    • 544 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    I believe that the banks are not acting in a responsible fashion with their solicitation of consumers for credit cards and credit card lines. As mentioned in the article, the banks are advertising "promotions of credit card and debt to increase limits" in an attempt to gather additional consumers. I think by advertising these credit cards to college and high school students, and then providing them with higher credit limits and promotions, the banks are aiming to increase the number of irresponsible spenders in today's society to make money.…

    • 3370 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    Maxed Out

    • 592 Words
    • 3 Pages

    The first key fact I found most interesting was who in America are most vulnerable to credit card companies. Credit Card companies such as Capital one and Discover target the most vulnerable, college students and people who have already been through bankruptcy. College students are one of the main targets, because they are in school working for a higher education. These students are more likely to get a high paying job when they graduate and will be able to pay these credit card companies back, as opposed to kids that go to work straight out of high school. Credit card companies also target people that have already been through bankruptcy because they can’t file for bankruptcy again and they are willing to pay the minimum payment forever.…

    • 592 Words
    • 3 Pages
    Good Essays
  • Better Essays

    American Loan Sharks

    • 2297 Words
    • 10 Pages

    Twenty-five years ago, the banking industry successfully eliminated a critical restriction: the limit on the interest rate a lender can charge a borrower (“Do You Know What You”). These restrictions were known as usury laws. These laws were in effect for centuries prior to the 20th century (Geisst 2). Usury laws were established to protect the borrower from predatory behavior (Geisst 3). “Prior to the 20th century, charging interest on loans was considered heresy by the church. Anyone caught charging excessive interest was excommunicated and often punished” (Geisst 3). Banks fought for restrictions to be lifted arguing the usury laws were standing in the way of progress (“Do You Know What You”). Banks won the battle over consumers. The deregulation of the usury laws occurred in the early 1980’s and created a whole new invention, the unsecured credit card.…

    • 2297 Words
    • 10 Pages
    Better Essays
  • Better Essays

    The ethics of credit card companies has to be in question. They are one of the few businesses that can change the rules on you and there is currently nothing you can do about. The credit industry is not your friend. They want to get you to borrow money from them and to keep you in debt for as long as possible. This way they have a constant flow of revenue through the interest payments, late charge fees and over the limit fees. They have many practices and charges that most people don’t know exist and are helpless to combat. The credit card industry has gone unchecked for way too long. The credit card industry lures you in with deals and rates that appear to be great bargains but are often misleading. Consumers should beware and always read all of the fine print and terms and conditions. If you proceed carefully though there are times that you can use the credit card companies to your advantage, but be careful it is easy to slip into the habit of saying I’ll pay it off next month and carrying the debt way longer than expected. Below is an actual advertisement that shows you how the credit card companies actually lure you in.”…

    • 3278 Words
    • 14 Pages
    Better Essays
  • Good Essays

    Cash Versus Credit Cards

    • 1137 Words
    • 5 Pages

    Americans should handle their credit cards responsibly and should not become a part of that number of abusers. The Scott III (1999) website “The average Americans household has eight credit cards, which are used to charge almost $2 trillion in goods and services annually.” No one wants to be a part of the group of individuals who he or she can put his or herself at risk for acquiring a negative credit score, possible job rejections, rejections when trying to rent or lease a vehicle or property, possible marital and family problems, health problems, or higher car insurance or denial of insurance. The misuse of credit cards is causing credit card debt to spread more rapidly every day. Today’s society makes it almost impossible to go without using a credit card in some way or another. Renting movies, renting a car, reserving a hotel room, and booking airline tickets are some examples of purchases that require a credit card. Although this may be true, credit card users still must think very responsibly and not fall into the deadly hands of the credit card monster. Even though some Americans are responsible credit card users, those that tend to overspend should not use credit cards.…

    • 1137 Words
    • 5 Pages
    Good Essays
  • Good Essays

    To (Kristin, N.D.) validate this argument of what a responsible age for obtaining a credit card for a young adult is. The Legislation in 2010 put into effect that adults between the ages of 18 and 20 years old would have certain restrictions in regards to approval for their own credit card. The young adult is now required to have a co-signer on the account or have proof of sufficient income to pay the credit card bill when due. This insures the credit card company that even if the young adult does not be responsible and pay their bill the co-signer would then be responsible for any missed or late payments to the account.…

    • 837 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Drinking Age Research Paper

    • 2453 Words
    • 10 Pages

    Bars and many dance clubs are strictly for those 21 and over due to the legal drinking age in America, so many legal adults are not permitted entry. Clearly a discrepancy exists between an 18 year old adult and a 21 year old adult; however, since they are viewed by law as equals shouldn't they have the same privileges (Daniel 140)? Obviously certain laws that regulate activities by age are necessary. Voting, alcohol, and driving should not be available to people of any age because of the amount of responsibility these activities require. However the segregation between younger and older adults is unwarranted. Up until 1984 the legal drinking age was 18, however Mothers Against Drunk Driving (MADD) spurred a campaign to raise the age limit to 21. They succeeded with the passage of the National Minimum Purchase Age Act in 1984. The law aimed to lower the number of drunk driving accidents, which it has done, but only by a small margin. However, what it has also done is reduce the rights of citizens between the ages of 18 and 21. Americans hold personal freedom to be an undeniable right. The right to drink one's self into a drunken state still falls under the personal right category; however, this basic freedom is restricted by the implementation of the 1984 law. Instead of being able to have complete control over one's life when they reach the legal age of…

    • 2453 Words
    • 10 Pages
    Better Essays
  • Satisfactory Essays

    This act effects on Apple as this business can only let customers over the age of 18 to buy on credit from their stores as that is the minimum age and if this business lets a customers under the age of 18 purchase their product or service on credit then the business has committed a crime as they have broken this law and it can lead to fine and influence on the business negatively. On the hand, businesses would need to have a license to give credit and this can only be possible when businesses register with…

    • 519 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    Credit card debt is one of this nation’s leading internal problems, and it has been for around the last 3-4 decades. When credit was first introduced, and up until around the late 1970’s up to today, the standards for getting a credit card were very high; so not everybody could get one. The bar got lowered and lowered to where, eventually, an 18 year-old college student with almost no income and nothing to base a credit score on previously could obtain a credit card (much like myself). The national credit card debt for families residing in the United States alone is in the trillions (Maxed Out). The average American family has around $9,000 in debt, and pays around $1,3000 a year on interest payments (Maxed Out). Many people have the concern today that these interest rates and fees are skyrocketing; and many do not understand why. Most of these people have to try to avoid harassing collecting agents from different agencies, which takes an emotional and psychological toll on them. While a lot of the newly recognized “risky” people (those with a doubted ability to make sufficient payments) are actually older people who have been customers of certain companies for decades, the credit card companies are actually consciously targeting a different, much more vulnerable group of people: college students. James Scurlock produced a documentary called Maxed Out on this growing problem, in which Senator Jack Reed of (Democrat) of Rhode Island emphasizes the targeting of college students in the Consumer Credit Hearings of 2005…

    • 1692 Words
    • 7 Pages
    Best Essays
  • Good Essays

    right to ban teenagers because teenagers are still customers and the ban is based on…

    • 642 Words
    • 3 Pages
    Good Essays
  • Good Essays

    During late 1940s master card was introduced and during 1950s diners card usage was brought to the forefront and wide usage of credit cards began later in 1950 onwards. Diner’s card was amongst the top most companies in the world after it emerged successful since its establishment in 1950. There were territorial restrictions that problem has been solved these days and credit cards are acceptable throughout the world. The credit cards are advisable for usage except for the high transaction fees that you may have to incur even if you do not use it. Another credit card by the name visa card has been introduced in 1950s that became master card by the end of 1950s.…

    • 493 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Recent economic concerns prompted President Obama to meet with credit card industry executives in April 2009. The national credit card delinquency rate has continued to grow in recent times, and the president, along with Congress, aims to end unfair fees and increases in interest rates. In addition, the president asked that all terms, disclosures, and statements be clear and easy to read for consumers. Confusing terms, often laid out in fine print, are believed to have led to the nation’s rising debt and delinquency.…

    • 1154 Words
    • 5 Pages
    Good Essays