President Obama Signs Into Law the Credit Card Accountability Responsibility and Disclosure Act of 2009

On Friday, May 22, 2009, President Barack Obama signed into law the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Act). Many of the key provisions do not become effective until February 2010, but several provisions require card issuers to change their practices by August 20, 2009. The Act fundamentally changes certain aspects of the law regarding credit cards and gift cards. This newsletter provides a general overview of the Act's key provisions that will affect issuers of credit cards and gift cards.

College students need a babysitter. Or at least that’s what the federal government thinks, if the Credit Card Accountability, Responsibility and Disclosure Act of 2009 is any indicator. The act requires all credit card applicants under the age of 21 to have a co-signer above the age of 21 or to prove their ability to be responsible with a credit card. But the law doesn’t respect the autonomy of college-aged individuals as legal adults and hurts their financial independence.