College Students And Credit Card Debts

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Are parents really liable for credit card debt that there adult (over 18) college kids run up???

I read an article in the local paper yesterday about New Jersey trying to put through a bill to put restrictions on credit card companies issuing cards to college students. You can read the article here: http://www.forbes.com/feeds/ap/2008/10/23/ap5598421.html

What caught my eye is the bill is partly to ". . . insulate their parents from incurring their [college kid's] debt."

And ". . . help protect students' credit ratings and their parents . . "

And "Parents would be liable for their child's dept only if agreeing to [some provision] at the outset."

A related article from a month earlier can be found here: http://www.nj.com/news/index.ssf/2008/09/n...te_bill_re.html

In this article, it says "It also would bar companies from taking action against parents of students who fail to pay, unless the parent previously agreed to be responsible for the debt."

How could it even be legal to go after a parent for debt that an adult-aged kid runs up on a card they went out and got themselves?? Am I missing something here?

(Geesh, how times have changed. I was out of college and had a steady job for 3 years before any bank would even consider giving me a credit card.)

[pappyld04]

IMO, credit cards are a ripoff. I have never had one and never will. Some people just don't get it when they are out of money. The person who creates the debt should be the one paying it not their parents. Now if the parents got the card and agreed to pay it then they are responsible.

[mystofpric]

If the student is under 18 when they get the card, then yes it is possible for the card company to go after the parents, but ony for expenses occured until they hit 18, or if the parents are on teh account. IMO there should eb an age restriction on credit cards, no one under the age of 25 should be allowed to have one. and then everyone should be limited to 2. Imagine the end of debt!?

[pappyld04]

Where would we be if we only spent the money that we have?

[mystofpric]

Where would we be if we only spent the money that we have?

Not in a recession.

[ladylove]

I believe if you co-sign for the card so you child can get credit, you are responsible. If not I don't think they have a legal right to come after you. However, we only and always give our kids debit cards with a monthly allowance, that way they can't spend more than we're prepared to pay.

[Guest eminatic]

basically what everyone else said, parents are not liable for a credit card unless they are co-owner/co-sign the account. although they can get caught up in student LOANS (although again, they'd have to co-sign but really, its impossible to get a load WITHOUT them co-signing).

if you haven't already i highly suggest checking out the website: www.studentloanjustice.org

no one ever talks about Sallie Mae but they have a stranglehold on the student loan business, and they are not in financial trouble like other loan companies because there is NO way to get out of a student loan, EVER.