As students return to campus this fall, credit card companies may try to entice students. But new legislation, some of which already is in effect and some of which will start in February, will help prevent unfair credit card practices.

In a recent “Cordray’s Consumer Solutions” broadcast on WSYX-TV in Columbus, Attorney General Richard Cordray addressed college students and credit cards. The new laws give credit card holders a sort of bill of rights that will protect them from some deceptive practices such as excessive fees, unfair increases in interest rates and double billing. It also gives consumers the right to cancel their card and pay off their balance before new interest rates take effect.

The law also contains several provisions to protect students. It limits the way credit card companies market themselves on or near campuses: specifically, they cannot use giveaways like Frisbees or T-shirts. Also, it requires anyone under 21 to either have a parent, guardian or spouse co-sign on the card or be able to demonstrate they make enough money to be responsible for the card themselves.

The goal is to help young people use and learn about credit cards responsibly and avoid being mired in debt.

Cordray also points out that college students who open a credit card and use it responsibly can begin to build a positive credit history. This can help them to buy a car or lease an apartment when they graduate.

Undergraduates may want to check with their school’s student life or student affairs offices for additional information and assistance.

Links

Cordray: One important step closer to achieving fair treatment of credit cardholders — Ohio Attorney General’s Office