4 the clackamas print
Wednesday, Jan. 27, 2010
________________________________________
news
Credit card laws to change in February
By Travis Hardin
The Clackamas Print
buy plane tickets, I buy all that Banks still do have the ability
to charge a fee to expedite the
stuffthen I pay it off.”
Restrictions on the marketing transaction.
For those who like gift cards
Eighteen and wanting a credit practices and number of credit
cards that are issued to students but hate the fee penalties that
card? Think again.
Starting Feb. 22, banks must are also outlined under the new come along with them, here is a
gift, they, too, are covered under
comply with the Credit Card act.
Drew Lowther is a former the law.
Accountability, Responsibility
“Help. People will be able to
and Disclosure Act that President credit card processor and spe
Barack Obama signed into law cialized in convincing business keep track of their own money,”
on May 22 of last year. Banking es to accept credit cards for said Hepburn when asked if the
institutions have had since last payments.
new law will help or hurt the
May to start conforming to the
“I think credit cards are bad economy.
new law.
overall; it reinforces the idea
. With the recent turmoil in that you need credit to by some
the economy from the housing thing,” Lowther said.
and financial crises, some see
Lowther, a father himself,
this as a good thing to protect said, “No, I don’t want to be
consumers.
liable for my kid’s debt,” when
Max Hepburn, a 19-year-old asked if he would be a co-signer
student, said, “I think overall on a credit card.
it might help just due to the
Devin Herigstad is an 18-
fact that people will start being year-old freshmen who has one
able to keep track of their own Visa credit card through West
money.”
Coast Bank. He has had his card
Under the new legislation for about six months. According
individuals 18 to 21 must either to him, he is not worried about
have a co-signer such as a par trying to get another credit card.
ent, viable income or pass a He has worked at Game Stop
course in order to apply for a for the last three years and has
credit card.
a way to pay for his monthly
According to David Vegsund, payments.
a 19-year-old sophomore, the
Herigstad also said “My mom
new laws don’t deter him because would co-sign for me,” if he
he knows that he can get one.
wanted to go and get an addi
“I know I am responsible with tional card in the future.
a credit card,” said Vegsund.
Herigstad uses his credit card
Vegsund already has two to buy textbooks in advance until
credit cards and only uses one he receives his financial aid and
of them.
also makes online purchases
“I am actually thinking about with it.
getting another one, for the fact
Some other new rules include
that I like to fly a lot, so I am ending double-cycle billing that
thinking about getting one with almost all banks currently use.
airline miles,” added Vegsund.
Credit card holders can only
Also under the new law peo receive one fee for being over
ple who have credit cards must the limit in a billing cycle.
Consumers also now have
be notified 45 days in advance
if their bank wants to- increase more time to pay their card pay
ments under the provisions. If
their rates.
This law went into effect on the bill is paid on the assigned
Aug. 20 of last year. Banks can due date or the bank does not
still however change your credit receive mail the following dgy,
limit without notification unless such as Sundays or holidays,
the change would create a penal the credit card holder will not
ty, like an over limit fee. On the be charged a penalty. Instead
other hand, the new law does not they will be charged a late fee if
cover putting a cap on interest the account becomes delinquent, \
rates or the fees that the banks which is more than 60 days from
can impose.
z when the last payment was due.
If a credit card holder gets
When asked what he uses his
credit cards for, Vegsund replied, in a bind and needs to pay a
“I actually use it just to build bill either over the phone or via
credit. I buy all my groceries, I the Internet, it now will be free.
“I think [credit cards] are a
bad thing for anybody who is not
planning to and capable of pay
ing them every single time.” said
librarian Karen Halliday.
When asked if she would be a
co-signer for a credit card if she
had children Halliday replied, “I
probably would say, ‘I’ll be your
emergency back-up but I’m not
[going to be your co-signer]’.”
Halliday herself uses cred
it cards frequently, saying,
“Because of the mileage bonus]
es, I’ve been able to go to Africa
because of frequent flyer miles
but I don’t carry balances.” i
According to Vegsund, he
talked to his parents before
getting a credit card, and the]
advised him of the risks an
responsibility involved.
“You can get into debt real]
ly fast,” Herigstad added when
asked what he has learned from
having a credit card.