The target market for credit cards in New York and elsewhere is college students. They rarely make enough money from their part time jobs (if they have them) to spend money on the things they need or want: books, supplies, computer hardware, and everything else needed for a collegiate lifestyle.
In the past, banks shamelessly marketed to them. They set up tables on campus sidewalks and included trivial gifts with the credit cards they sold, such as Frisbees and T-shirts. As a result, students opened the accounts, charged items to their credit cards, and fell into debt. Congress deliberated the problem in 2009, and it passed the Credit Card Accountability, Responsibility and Disclosure Act (CARD Act).
The legislation does three things: it requires proof of sufficient income or co-signers for applicants under 21; it forbids banks from giving applicants tangible gifts; and it prohibits banks from setting up tables on campuses to sell credit cards.
A Wall Street Journal article investigated banks’ practices following the passage of the CARD Act. The results weren’t pretty. Banks had begun providing intangible gifts to student applicants, such as coupons or $50 statement credit. Instead of placing tables on campus, many simply moved theirs’ off-campus to nearby well-traveled streets. Bolder banks continued setting up tables on campus but sold checking accounts hoping student applicants would purchase a credit card on their own later. Chase offered its Chase +1 Student MasterCard on Facebook but ceased doing so later.
As for the co-signor or “proof of sufficient income” requirements for under-21 purchasers, because the statute doesn’t define “proof of sufficient income,” banks have suffered no material setbacks in enticing student debtors.
For New Yorkers whose credit card debt has grown beyond the point of repayability, the situation is not hopeless. You can always file a Chapter 7 bankruptcy to discharge your credit card debt and get a fresh start. Banks setting up tables on college campuses don’t want you to do that, and they’ll discourage you, but an experienced New York bankruptcy attorney can help you manage your credit card debt problems.
For more questions about credit card debt, bankruptcy, the automatic stay and effective strategies for dealing with foreclosure, please feel free to contact experienced bankruptcy attorney near me Bruce Weiner for a free initial consultation.
