Washington — The U.S. House of Representatives today passed a consumer-protection bill that would make it illegal to market credit cards to children under the age 18, a segment of the population that includes some college students.
The legislation, the Credit Cardholders’ Bill of Rights Act of 2009, HR 627, says that “no credit card may be knowingly issued to … a consumer who has not attained the age of 18.” College students’ indebtedness has been increasing in recent years, and this legislation may help protect students who are unsophisticated in managing their money.
The bill, which would also make it illegal for credit-card companies to impose sudden interest-rate increases, passed on a bipartisan vote of 357 to 70.
A similar bill in the U.S. Senate would affect more college students. That legislation, S 235, would prohibit companies from issuing credit cards to people under 21, unless they completed a financial-literacy course and had a co-signer. Some senators have voiced displeasure with the bill, according to CNN, making its passage unlikely without changes. —Steven Bushong
