Because many college students run the risk of piling up lots of credit card debt while they’re away from home, one state has passed new laws that will help young adults avoid some of the pitfalls that come with a new card.
According to a report in the Bergen Record, the state of New Jersey recently added restrictions on how credit card companies can market their products to college students, and how they can pursue their debt. These restrictions are in addition to the provisions of the Credit Card Accountability, Responsibility and Disclosure Act that limit how lenders can deal with consumers under the age of 21.
The report said that the laws not only restrict the way credit card issuers can market their products on college campuses, but they also prohibit lenders from pursuing delinquent debt from a student’s parent or guardian. In addition, lenders that do market on campuses must provide students with education about the responsibilities of opening an account.
In recent years, student credit card debt has grown into a serious problem. The average new college graduate has thousands of dollars in credit card debt.