Consumer Law

New Credit Card Bill and People Under 21

By Brian Wolfman

by Brian Wolfman

Sections 301 to 305 of the new credit card legislation are aimed at curbing the credit card industry's very aggressive marketing practices toward college students and people under age 21. It is too early to say whether these provisions will be effective, as they depend in part on the content of yet-to-be-issued Federal Reserve regulations (sec. 301) and hoped-for responses by colleges based on a "sense of the Congress" as to what colleges ought to do to restrict credit card company practices (sec. 304). In any event, what is unusual about these provisions is that they seek to protect one small age group of adults, presumably on the ground that they are differently situated and/or more susceptible to abuse than other adults.

The law of every state treats people 18 to 21 differently from other adults with respect to drinking; people under 21 cannot lawfully consume alcohol in the U.S., except in very limited circumstances. But otherwise, 18 year olds generally are treated like other adults. Ratification of the 26th Amendment in 1971 gave 18 year olds the right to vote. 18 years olds, I believe, can marry in every state, even without their parents consent. The bitter battles over whether young women may have an abortion, absent parental consent or judicial approval center, I believe, around girls under 18; I think that 18-year-old women have the same abortion rights as all other adult women. Compulsory school laws often require kids to attend school until age 16, but never, I believe, past age 18. 18 year olds can enter contracts and litigate on their own. And, perhaps most importantly, 18 year olds can serve in the military and die for their country (which is what led to the rapid ratification of the 26th amendment during the height of the Vietman War). And, I believe, 18 years can enlist without parental permission. (I believe 17 year olds can enlist, too, but only with parental permission.). My daughter informed me a few weeks ago that now that she's 18, she didn't need our signature on a permission slip for an extracurricular activity in which she was involved (even though many of the other kids, who were not yet 18, needed a signature from mom or dad). In short, age 18 is the age of majority in this country, with narrow exceptions.

I'm curious: Can you name other examples, like alcohol, where 18 to 21 year olds are absolutely prohibited from the activity? I can think of a few: They cannot serve in the U.S. House or Senate or as Veep or President. But neither can 21 year olds. Are there other examples? And what do you think makes credit cards at least somewhat like alcohol and not like military service?

Full post as published by CL&P Blog on May 25, 2009 (boomark / email).