The Credit Card Accountability Responsibility and Disclosure (CARD) Act passed in 2009 and is intended to protect minors from predetory lending from credit card issuers. The Act stipulates, among other restrictions, that no person under the age of 21 can open a credit card account without a cosigner unless the peroson can demonstrate the ability to payoff debt and that issuers can’t market cards to students within 1,000 feet of a college campus.
Even with these regulations, some consumer advocates are still expressing concern.
From the Boston Globe:
But students and parents can’t let their guard down. The companies are still hoping the young people will become credit card users. Now they’re more likely to attempt to snag them through social media such as Facebook, said Odysseas Papadimitriou, chief executive of credit card comparison website CardHub.com.
Click here to read more from the Boston Globe.