New Credit Card Rules to Protect Card Holders
President Obama signed a new law intended to protect consumers from the "predatory" practices of the credit companies. Robert Gibbs, White House spokesman, said, "These are important reforms to protect consumers and to bring some commonsense rationality into our financial system". The law will restrict card issuers from providing credit cards to consumers less than 21 years of age unless they can provide proof of income sufficient to repay the debt. Otherwise, a parent or guardian would be required to sign on as a guarantor, or co-signor to the obligation. Many parents are already speaking out that they don't want to be held responsible for the action of their teens. The opposition from the credit card industry didn't persuade Congress to waver on the new restrictions, which passed the bill. Another restriction in the new bill would require issuers to provide 45 days notice before an interest rate increase could take affect.