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The government has decided that it's unethical for a bank to market a credit card to a college student (maybe a $5,000 credit limit and dischargeable in bankruptcy) yet we permit 18-22 year olds to take out $50,000+ in loans without regard for the return on the investment and make it almost impossible for them to get a fresh start if it turns out to be a bad investment.



When did they decide that? I started getting 5 credit card offers a day as soon as I applied for college.


Title III of the Credit Card Accountability Responsibility and Disclosure ("Credit CARD") Act of 2009[1] and the CFPB's Reg. Z[2] which implements it. It amended the Truth In Lending Act to prohibit a lot of the "sign up for a credit card and get this free poster" marketing that had been happening on college campuses. It also requires that card issuers evaluate a consumer’s ability to pay before opening a new credit card account or increasing a credit limit. That requirement effectively stopped the issuance of credit cards to full-time college students without a co-signer. It also had the unintended side effect of making it much more difficult for stay-at-home parents to get a credit card without their spouse as a co-signer because the regulation only permitted card issuers to consider the applicant's income/assets. Reg. Z was amended a few years ago so now card issuers only need to evaluate someone's ability to pay if they're under the age of 21.

[1]https://www.ftc.gov/sites/default/files/documents/statutes/c...

[2]https://www.consumerfinance.gov/policy-compliance/rulemaking...


Yep that’s after my time.




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