What can be done to regulate credit cards?

Question

My son only 18 got a credit card on-line with out having a job . Even though we have talked to him about the problems with the cards. Now he will spend the next year trying to pay . I believe to get a credit card you should have to show proof that you can repay. Proof that you have a job, checking and saving account.
PLEASE WARN YOUR CHILDREN NOT TO USE CREDIT CARDS

Answer 1

There's nothing much we can do to regulate credit card companies other than just make full disclosures about the hidden fees and make these penalties easier to understand.

In my state, they began a finance campaign sponsor by the Department of Banking and Insurance and various financial companies to teach all high school students about credit cards, budgeting, and how checking and savings accounts work. The goal is to make young adults more financially responsible so that they don't build up so much debt or run into money troubles.

So its really education that can help young teens to avoid big problems in the future.

Answer 2

I hope not much! All that regulations do is make it more expensive for everyone else to use the cards. Credit card companies are enjoying a nation that is currently overspending itself. It won't be able to last long and in the end, when bankrupcies take their profits they will start to govern themselves better. It is much like what is happening recently with the sub prime morgage lenders that made unfair loans. The capitalistic system will take care of itself in the long run.

In the short run I feel sorry for you, your son, and the millions of Americans facing foreclosure. In the end you all be aright. All you can do is educate yourself, read the fine print and budget/plan before you act.

Answer 3

You can call the credit card company and see if they will allow no new charges. Or, another fashion, like $100/month.

Also, your son may learn a valuable money lesson about spending what you don't have. It's a stinker of a lesson but perhaps a good one to get under the belt early.

Answer 4

The industry set itself up for abuse and are enjoying the fruits by conning people like your son and others. So the best regulation is self regulation.

He can learn to be responsible for it by showing him the advantage of having it for emergencies. But in the meantime, you hold onto it until he gets a job.

Answer 5

Credit cards like alcohol and tobacco are accessible to teens .
PARENTS need to educate them so that they are smart enough to avoid those hazards.
It is more than warning, it is a repetitive process about all the toxic things for years ( kids do not learn their ABCs or multiplication tables in one session - they learn slow and need constant re-education )

Answer 6

Why are mastercard businesses no longer held in charge for paying for a individual in debt first of all? Why have republicans made it open season on the middle classification? possibly banks may be extra careful in the event that they have been held in charge. Btw, the place does the money come from once you get mastercard factors? It would not come from skinny air. So who's figuring out to purchase it?

Answer 7

You are blaming the credit card company? Your son knew he was unemployed.