Obama Credit Card Reform Act – Discover, Capital One, Chase and Citi Have New Rules

Posted on | February 26, 2010 | No Comments

As of Monday, every major credit card company must follow new rules in order to comply with the Credit Card Act which was released. Many Americans are still very unaware of what this Act is all about and whether it will help or hurt them, and why it was written. With the economy in such a downward spiral and the credit industry doing so bad, it was time to make some adjustments in order to protect the consumer and try and improve the market.


One of the major changes being made within all of these companies is that they are not longer able to issue cards to anyone under the age of 21 without a valid cosigner. This major change will help the industry tremendously from issuing cards to 18 and 19 year olds with no income that max out the credit cards and then are unable to pay them back. Right alongside this new change, companies will also no longer be able to advertise cards on college campuses which will eliminate the number of students signing up for cards.

Both of these changes will help reduce the number of credit card holders who are not making payments on their cards. In turn, this will create an overall better market for these companies. In addition to changes with the age of card holders, many changes are being made in relation to interest rates, billing cycles, and due dates. All of these changes collectively will help the consumer, and improve the market.

Author: Sylvia Wayne

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