Sen. Nutting says his bill is aimed primarily at college students who sign up for credit cards without their parents' knowledge and, unschooled in financial matters, accumulate sizable debt. The bill is LD 371 - "An Act to Protect Young Consumers"

While Senator Nutting's idea looks good on paper, implementation is a whole other factor.

18-year-olds in Maine, like in most states, have a legal right to enter into business agreements such as obtaining credit cards. Lenders who deny credit to eligible young adults could run amuck of the federal Equal Credit Opportunity Act.

And that is a big problem.  There are numerous independent young adults that should not require their "parent's permission" to enter into an agreement.

A better direction for this well meaning proposal, would be to remove the student's liability for credit card debts, that were incurred under the age of 21 while in college.  Thereby removing the ability for credit card companies to sue them if they should default.  (Obviously some detail would have to be given so that claiming "college status," wouldn't be abused.) But doing this would cause two things to occur.

• First, if the credit card companies want to continue to be stupid and send credit cards to students/children who have no visible means of income, then make it impossible for them to force payment if the child defaults.
• Second, since the credit card companies really like that money from mom and dad, they will begin to require a co-signer on these accounts (aka mom or dad's permission.)

Now that is a win-win proposal.

Another direction chould be to ban the kick-backs many colleges receive from the very credit card companies that financially strap these students.   

By Pat Madison

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Pat is a volunteer writer for ACCESS. She lives in Nebraska with her daughter, two cats and one dog.