College Bank Curtailment
In previous posts, I've addressed several important facts about the new credit card legislation and how it affects you. Prior to the new credit card bill, college students lined up to listen to fast talking salespeople. It seemed as if every college campus in the United States had Discover Card, Visa & Mastercard kiosks that offered credit cards to college students regardless of whether they can pay or not. Many of us learned about money and finance the hard way because it wasn't taught in most schools. The credit card companies and banks were fully aware of that fact when they started handing out credit cards to college students as if they were textbooks. They made getting a credit card easier. To further entice potential customers, the credit card companies and banks would offer free pizza, t-shirts and an assortment of other gifts. This behavior led many college students to financial ruin because absent responsibility, a credit card be extremely dangerous.
Congress agreed when they added the provision on the curtailment of banks on college campuses. Per the new legislation, credit card companies and banks are required to provide a reason for participating on college campuses and at university-themed events. Unfortunately, the legislation lacks what constitutes a "Reason".
The new credit card legislation also prohibits credit card companies and banks from giving gifts or any promotional items (such as coupons for free pizza) to entice college students to take on debt by signing with their credit cards.
Many of you already have credit cards and despite your best efforts, you still can't understand why your minimum payment went up this month. After reviewing your statement you notice the interest rate has increased without your knowledge. Come to think of it, that is unfair! Congress thought the same thing when they introduced "Protections against Random Interest Rate Increases". In the next post, I'll discuss how the new bill addresses interest rate increases.
As always, please email me if you have any questions or comments.
Ebong Eka, CPA
info@ebongeka.com
In previous posts, I've addressed several important facts about the new credit card legislation and how it affects you. Prior to the new credit card bill, college students lined up to listen to fast talking salespeople. It seemed as if every college campus in the United States had Discover Card, Visa & Mastercard kiosks that offered credit cards to college students regardless of whether they can pay or not. Many of us learned about money and finance the hard way because it wasn't taught in most schools. The credit card companies and banks were fully aware of that fact when they started handing out credit cards to college students as if they were textbooks. They made getting a credit card easier. To further entice potential customers, the credit card companies and banks would offer free pizza, t-shirts and an assortment of other gifts. This behavior led many college students to financial ruin because absent responsibility, a credit card be extremely dangerous.
Congress agreed when they added the provision on the curtailment of banks on college campuses. Per the new legislation, credit card companies and banks are required to provide a reason for participating on college campuses and at university-themed events. Unfortunately, the legislation lacks what constitutes a "Reason".
The new credit card legislation also prohibits credit card companies and banks from giving gifts or any promotional items (such as coupons for free pizza) to entice college students to take on debt by signing with their credit cards.
Many of you already have credit cards and despite your best efforts, you still can't understand why your minimum payment went up this month. After reviewing your statement you notice the interest rate has increased without your knowledge. Come to think of it, that is unfair! Congress thought the same thing when they introduced "Protections against Random Interest Rate Increases". In the next post, I'll discuss how the new bill addresses interest rate increases.
As always, please email me if you have any questions or comments.
Ebong Eka, CPA
info@ebongeka.com
