The recently passed credit card bill primarily addresses many of the unfair practices of the credit card industry. One particular amendment in the bill specifically calls for the protection of students. Sen. Bob Corker and Sen. Dian Feinstein are the sponsors of the amendment.
Credit card debts from college students are fast becoming a serious problem. Credit card companies often exploit college students, giving credit card offers to them while knowing that they are hardly in the position to be able to pay off their debts. Oftentimes, college students graduate with an already large amount of debt to their name, even before they find employment.
Sen. Corker had this to say, ““Far too often, young adults don't read the fine print of credit card offers and rack up huge debts that follow them throughout life. As a father of two daughters in college, I’m constantly making sure my girls aren’t signed up for any of the many credit card offers targeting college students.”
About the amendment, Senator Corker explained, “This amendment reforms credit card marketing practices aimed at college students so that the terms are fair, transparent, and more easily understood by the consumer. It would also commission a study to fully examine the problem of student credit card debt so we can help make sure these young Americans aren’t burdened and hampered by excessive debt.”
Senator Feinstein also added that, “Colleges should not be encouraging their students to sign up for products with high interest rates and fees that can get them bogged down in debt.”
Senator Feinstein believes that college students are far more susceptible to get into credit card debt, as they lack the experience and the knowledge on smart credit management. Usually, these debts also stay with them for decades, making it difficult for them to start their professional careers. According to the Senator, the amendment simply puts some “common-sense restrictions” to the credit card industry, which will stop deceptive industry practices from abusing college students as well as other young consumers.
The amendment included by the two senators in the credit card bill will protect students from credit card debt through: