CARD Act Didn't Stop Flow of Credit Card Offers Mailed to Young Adults

Fox Business
April 20, 2010
Prater, Connie

Rules within the CARD Act have not put an end to credit card mailings directed at teens and young adults. Although 70 percent to 80 percent of the solicitations directed at people on prescreened lists have been squelched by the CARD Act, the remaining 20 percent to 30 percent still find their way to people's mailboxes. These typically are "invitations to apply," which come as a result of consumers enrolling in rewards programs, joining unions, or providing a mailing address to a merchant in order to receive a free gift. Member lists such as these often are sold to credit card issuers, some of which acknowledge that rewards and frequent flier programs are ways in which teens and young adults can get credit card offers and still avoid a credit background check. In addition to airlines and retailers, many college alumni associations admit to sharing lists with banks -- although the CARD Act now mandates that those deals be made public in reports to federal regulators each year. Despite the continued mailings, the CARD Act does have provisions that prevent cards from being issued to consumers under 21 without a co-signer and require those under 21 who want a card to provide proof of their ability to pay back debt.
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