Our President's Message to You

New Credit Card Law Brings Changes for Young Adults

The Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) limits credit card companies' access to young adults. Legislation regarding how credit card companies can market to young adults became effective Feb. 22, 2010.

Mike Schenk, vice president of economics and statistics at the Credit Union National Association, Madison, Wis., says the legislation will be good for overall credit use among young adults.

"The new legislation will lead to better money management, to young people being more careful about carrying balances and paying off balances on time," Schenk says.

Kelli Grant, senior consumer reporter for SmartMoney.com, says the new legislation could help protect young consumers from going into debt.

For example, credit card issuers have to include a minimum payment disclosure that explains how long it will take to pay off the balance and the total cost in interest fees if you pay only the minimum amount due.

Schenk reminds consumers that credit unions weren't involved in the deceptive practices that led to the new law, and will not try to trick consumers into high interest rates or unfair payments.

"What [young adults will] ultimately discover is that credit unions are a good deal," Schenk adds.

If you don't yet have a GenFed credit card, now is the perfect time to get one. For a better credit card, call your local branch or stop in today.

Sincerely,

Joyce J.
President/CEO

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