New Credit Card Bill and People Under 21

by Brian Wolfman

Sections 301 to 305 of the new credit card legislation are aimed at curbing the credit card industry's very aggressive marketing practices toward college students and people under age 21. It is too early to say whether these provisions will be effective, as they depend in part on the content of yet-to-be-issued Federal Reserve regulations (sec. 301) and hoped-for responses by colleges based on a "sense of the Congress" as to what colleges ought to do to restrict credit card company practices (sec. 304). In any event, what is unusual about these provisions is that they seek to protect one small age group of adults, presumably on the ground that they are differently situated and/or more susceptible to abuse than other adults.

The law of every state treats people 18 to 21 differently from other adults with respect to drinking; people under 21 cannot lawfully consume alcohol in the U.S., except in very limited circumstances. But otherwise, 18 year olds generally are treated like other adults. Ratification of the 26th Amendment in 1971 gave 18 year olds the right to vote. 18 years olds, I believe, can marry in every state, even without their parents' consent. The bitter battles over whether young women may have an abortion, absent parental consent or judicial approval center, I believe, around girls under 18; I think that 18-year-old women have the same abortion rights as all other adult women. Compulsory school laws often require kids to attend school until age 16, but never, I believe, past age 18. 18 year olds can enter contracts and litigate on their own. And, perhaps most importantly, 18 year olds can serve in the military and die for their country (which is what led to the rapid ratification of the 26th amendment during the height of the Vietman War). And, I believe, 18 year olds can enlist without parental permission. (I believe 17 year olds can enlist, too, but only with parental permission.). My daughter informed me a few weeks ago that now that she's 18, she didn't need our signature on a permission slip for an extracurricular activity in which she was involved (even though many of the other kids, who were not yet 18, needed a signature from mom or dad). In short, age 18 is the age of majority in this country, with narrow exceptions.

I'm curious: Can you name other examples, like alcohol, where 18 to 21 year olds are absolutely prohibited from the activity? I can think of a few: They cannot serve in the U.S. House or Senate or as Veep or President. But neither can 21 year olds. Are there other examples? And what do you think makes credit cards at least somewhat like alcohol and not like military service?

Comments

[Starwood AmEx Credit Card]

The new credit card bill bans credit card companies from issuing cards to consumers under 21, unless a parent or responsible adult co-signs the application or the applicant demonstrates the financial ability to repay the debt. In addition, it limits preapproved offers of credit to young consumers and bans increases in credit limits unless the person who co-signs the application approves the increase in writing.

[Brian Wolfman]

Hello. After many years at Public Citizen, I have moved to Georgetown law school, where I will be a co-director of the Institute for Public Representation (IPR) and head IPR's Civil Rights Clinic. You can reach me at 202 661 6582 and wolfmanb@law.georgetown.edu.

If you want to contact the Litigation Group, contact Litigation Group Director Allison Zieve at azieve@citizen.org.

Brian Wolfman

[pokies]

As with anything in life, credit card are useful for most people, while for some it can send them into a huge amount of debt. It really depends on the person and not the age of that person on whether they will be responsible in using credit cards.

[Brian Wolfman]

Hello. After many years at Public Citizen, I have moved to Georgetown law school, where I will be a co-director of the Institute for Public Representation (IPR) and head IPR's Civil Rights Clinic. You can reach me at 202 661 6582 and wolfmanb@law.georgetown.edu.

If you want to contact the Litigation Group, contact Litigation Group Director Allison Zieve at azieve@citizen.org.

Brian Wolfman

[credit cards]

Very informative article. Many of the people are very irritated about the said law. But what can we do, that is what the law says, so we need to abide w/ the law.

[Brian Wolfman]

Hello. After many years at Public Citizen, I have moved to Georgetown law school, where I will be a co-director of the Institute for Public Representation (IPR) and head IPR's Civil Rights Clinic. You can reach me at 202 661 6582 and wolfmanb@law.georgetown.edu.

If you want to contact the Litigation Group, contact Litigation Group Director Allison Zieve at azieve@citizen.org.

Brian Wolfman

[mastercard]

Restriction are always there, so we need to deal w/ it. But people under 21 is still considered as not capable to use credit card that sound really disgusting. If a person is capable to pay his/her bill they should allow them to have their own card. There a lot of people who are adults but still they can't manage well their money.

[Brian Wolfman]

Hello. After many years at Public Citizen, I have moved to Georgetown law school, where I will be a co-director of the Institute for Public Representation (IPR) and head IPR's Civil Rights Clinic. You can reach me at 202 661 6582 and wolfmanb@law.georgetown.edu.

If you want to contact the Litigation Group, contact Litigation Group Director Allison Zieve at azieve@citizen.org.

Brian Wolfman

[web design]

In Australia the legal age of becoming an adult is 18 and they are also allowed to drink at this age. It is interesting that at 18 you are legally allowed to marry but aren't allowed to drink.

[liamaa]

Very thoughtful post. I've been having a similar argument with friends lately. And I just don't understand the under 21 restrictions. I get the college campus marketing stuff. But the actual age restrictions seem odd.

What trouble me most is that I'm not sure who pushed for them. It was my understanding that the house version didn't have them. What special interest is out there (besides MADD) is saying "under 21s shouldn't be treated as adults?"

Shouldn't the issue be the ability of the consumer to repay their debts and not how long they've been on this ball of mud?

How does it make sense that a 22 year old w/o a job will have an easier time getting a credit card than a 20 year old w/o a job?

I can't think of any rules (asides from the ones you noted above: drinking age & Federal elected office holding) that discriminate in such a manner. It should also be noted that I think it's safe to say that the age restriction on holding Federal elected office was probably written with the same pen that wrote the infamous "three-fifths" clause.

[big red]

In the state of Alabama, no one under the age of 19 is allowed to buy, smoke, or carry cigarettes.

[credit card]

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