Credit Cards under 18

[bidasx 10]

Can anyone point me to where in the law it states credit cards can't be issued to those under 18? (besides being cosigned by parents etc.) Or is it more a general law that states people under 18 can't be held liable for contracts? Either way I'd like to have a print out of the law regarding this.

Besides being listed on the contracts one signs, is there a place? Any attempt to search online just gets me results about the new law regarding under 21 people.

Thanks for the help!

[alexip60 10]

Is my understanding that 18 year old are not of legal age to enter into contracts.

[kb9tbq 253]

http://www.creditcardreform.org/pdf/credit-card-bill-2009.pdf

Sec. 301. Extensions of credit to underage consumers.

Sec. 302. Protection of young consumers from prescreened credit offers.

Sec. 303. Issuance of credit cards to certain college students.

Sec. 304. Privacy Protections for college students.

Sec. 305. College Credit Card Agreements.

Here is the location of the Credit Card Reform Act - and the sections where to find the language of the Act on Consumers under 18 years of age.

[chuckygee 28]

My 17 year old daughter just received a Discover card offer in the mail today!!!!!!

[kb9tbq 253]

With the new laws, she will not be approved, unless you co-sign on the account with her.

She won't be able to get an individual account until she is 21 years of age.

[jq26 862]

I don't think anyone under 18 was ever given unsecured credit voluntarily. The credit apps require you to verify you are 18. So even though they received cards, it doesn't mean anyone is getting them without misrepresentation. They are just offers to apply. There are stories of cats, dogs, and babies receiving these mailers. Very annoying junk mail. Sort of similar to the AARP invitation mailers that litter my mailbox monthly (I'm 32 and have asked them three times to STOP sending these!). I can apply but they'll deny me based on age. Just a waste of a tree.

General contract law is that contracts are VOIDABLE if made by someone under the age of majority because the person lacks capacity (explained on another thread). The new law really cracks down on the 18-21 yr olds that are still under the "care" of their parents. We all know that most students were getting free t-shirts and beach towels and ending up with thousands in revolving debt in exchange.

bidasx: here is a very basic link that briefly explains what was posted a couple of days ago, but you'll have to check your state. Check 11.01 and 11.02:

http://www.lexisnexis.com/lawschool/study/outlines/html/contracts/contracts11.htm

[thomassl 51]

You can look in MSN Money and find the article. I believe it came out in the latter part of February 2010.

[jq26 862]

The OP is asking for authority for not being held liable for a debt initiated before the age of 18. It has nothing to do with the new credit reform acts (although interesting reading).

[Cincinnaticus 28]

Can anyone point me to where in the law it states credit cards can't be issued to those under 18? (besides being cosigned by parents etc.) Or is it more a general law that states people under 18 can't be held liable for contracts? Either way I'd like to have a print out of the law regarding this.

WARNING! Be careful! Don't credit card applications explicitly state that you must be at least 18 years of age to apply? Do you see where I am going with this?

[bidasx 10]

"But your honor, I was a dumb youth and was of an age where I couldn't fully and completely understand the terms in this contract nor the ramifications thereafter."

[Cincinnaticus 28]

"But your honor, I was a dumb youth and was of an age where I couldn't fully and completely understand the terms in this contract nor the ramifications thereafter."

How about this one: "No comprende. Mi Englese is a berry baaad."