New York AG Tries to Enhance Credit CARD Act's Student Protections

   

Posted: Sep 16, 2010

To capitalize on the consumer protections created by the Credit Card Accountability, Responsibility and Disclosure (CARD) Act, New York Attorney General Andrew Cuomo has developed a new code of conduct for in-state colleges and universities. As part of the effort, Cuomo has requested that schools across the state reveal any existing deals they have with issuers that are designed to boost revenue. The Credit CARD Act prohibits issuers from soliciting college students on campus and from offering gifts to those who apply for credit.

The State University of New York (SUNY) recently became the first institution to comply with Cuomo's code of conduct, according to Bloomberg. The school, which has 64 campuses across New York, plans to limit the amount of advertisements students are exposed to while attending classes. Under the terms of Cuomo's code of conduct, SUNY will also implement financial education classes to help students understand how to manage their credit and debt.

Students who fail to pay their bills in a timely manner are at a heightened risk of credit score damage. This can result in future difficulties when applying for big loans, such as home and auto loans. Reverse Mortgage Daily, a real estate news site, reports that only consumers with credit scores above 580 are eligible for maximum financing options from the Federal Housing Authority (FHA), due to tighter lending restrictions.