Are Class Action Lawsuits Brewing in Dorms from Students Being Denied Credit?

Are Class Action Lawsuits Brewing in Dorms from Students Being Denied Credit Cards?

By Adam, blogger at attorneys.org

Has anyone heard of a lawsuit filed by some College Students who are being denied credit card accounts?

Or perhaps this is a preview of what could happen on the collegiate legal frontier after February 22, 2010?

There was a very interesting point blogged by the insightful staff over at CardRatings.com. I’ve read a few excellent blogs written by Curtis Arnold, Co-Founder and Author.

The blogs were very insightful. Another Interesting article he wrote was regarding how college students will react when the C.A.R.D. act becomes law on February 22, 2010. There is a restriction in this Law that prevents college students under the age of 21 from being able to obtain college student credit cards unless they can prove income needed or if they have an adult co-signer to sign on and potentially take on the debt owed on a defaulted student credit card.

Here is just a brief paragraph or two blogged by CardRatings.com on September 11, 2009. All of us who read it gained some interesting insight in to the new laws affecting people ans students under 21. I mean 18 year olds fight for our lives and their own in the wars going on. I wondered if it is better to put a student in to Federally Controlled student loan debt - that is if Obama achieves hs goal of allowing the government to make a profit of the ones who made it to college; a profit in the form of fees and or basis points from proposed federal direct student loan serviced by the government.

CardRatings.com wrote:

Why the CARD Act Is Actually REALLY BAD for Students | Posted On: September 11, 2009

1. The CARD Act Is Discriminatory
Sec. 201.B of Reg B issued by the Governors of The Federal Reserve states, “The purpose of this regulation is to promote the availability of credit to all creditworthy applicants without regard to race, color, religion, national origin, sex, marital status, or age (provided the applicant has the capacity to contract); to the fact that all or part of the applicant’s income derives from a public assistance program; or to the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The regulation prohibits creditor practices that discriminate on the basis of any of these factors.” Emphasis added.”

While many people have written about how the C.A.R.D. Act may affect the availability and cost of credit in general, little criticism has been raised about the student/under 21 provisions.

What if this creates another class action lawsuit against lenders, with the first one emerging from the student loan scandal of 2007. What kind of “punishments did schools and banks get for steering their heard of students toward that certain lender.

In short, in their rush to pass a bill that would institute new reforms to the credit card industry, Congress forgot to ask themselves about the unintended consequences. Students are an easy target because they have fewer lobbyists screaming on their behalf. Once this law is enacted, a student who is denied credit based on this law should launch a test case for discrimination.

I recommend reading the entire article written by one of the writers at CardRatings.com. For their full blog post, visit: http://www.cardratings.com/creditcardblog/2009/09/why-the-card-act-is-actually-really-bad-for-students.html

Please feel free to leave ON TOPIC thoughts, comments and opinions or any other kind on response. Thank you for giving this a read.

-Adam, Attorneys.org writer. See http://www.attorneys.org/