Credit CARD Act Overview; Compliance Seminar Agenda Finalized
NAFCU Members: we've put together an overview of the Credit CARD Act.  Access it here  within the research tools area. (NAFCU Member log-in needed.) For you non-NAFCUers, here's a taste of what is inside.
TITLE III â PROTECTION OF YOUNG CONSUMERS
Sec. 301. Extensions of credit to underage consumers.
This section amends Section 127 of TILA by adding consumer protections aimed to limit the ability of creditors to issue open end credit to consumers who have not reached the age of 21.
In short, credit unions will not be able to issue open end credit (note â this is not limited to credit cards) to a member under the age of 21 unless: a) A parent, spouse, or legal guardian over the age of 21 co-signs; or b) The consumer under the age of 21 provides financial information showing independent means of repaying any obligations. The Federal Reserve shall issue regulations that will give creditors the standards for determining the ability to repay.Effective date: February 22, 2010.
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The agenda for the NAFCU Compliance Seminar has been finalized. You can access it here. Shocker: we'll discuss Reg Z and the Credit CARD Act here as well.