I have serious questions about the credit card reform bill which passed the House yesterday and is now moving on for a vote in the Senate.
Check out Section 7 of this bill: “Prohibits extensions of credit to consumers under age 18, unless they are emancipated under state law.”
Huh? Don’t we already have laws that prohibit any minor, unless legally emancipated, from entering into any binding contractual agreement (which a credit is a contract)?
Why is this section in the bill when it isn’t necessary?
Is it perhaps that we have allowed our lawmakers to permit our banking and credit industries to get so out of hand and unregulated that our legal system has been looking the other way as creditors break our own laws?
Or, is this a convenient way for setting up a forgiveness program for minors (who are now adults or will soon be adults) who have committed fraud by lying about their age to obtain a credit card, or to get their parents off the hook for what their kids did? Or, is it a way to get the credit card companies off the hook who granted cards to kids because theydidn’t verify their age?
This is as irresponsible as those mortgage companies who extended credit to people who they knew could not afford the house. Another form of bailout?