The reality of the impact that the enactment of the CARD Act has had on credit unions that offer credit cards to university students has been a mixed bag.
Under the law, a card issuer cannot issue a card to a person under 21 years of age unless that student has a parent co-signer or can prove he or she can pay for the card. It also requires the disclosure of contracts between universities and credit card companies and prevents companies from luring students with freebies and giveaways in exchange for card applications.
Even before the CARD Act, FSU Credit Union never used student credit cards as a lead-in with marketing and sales efforts.
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