A new law for college credit cards will take effect come monday. The new law provides new protections to college students and requires colleges and alumni groups that offer credit cards to utilize new requirements before subjecting students to more debt.

President Obama signed the new bill last May. Consumers advocates say that this law is long over due and there needs to be more restraints on this loose industry.

Several key provisions are designed to protect  young people, restrict the behavior of but not limited to the requirements of the credit card companies.

The most prominent feature of this new law is that bands rate increases and requires more impending increases and limit the banks on how quickly they can impose certain late fees.

In addition it targets protecting young consumers specifically college students from collecting excessive debt.

Consumer advocates acknowledge that the biggest let down in the new law is the fact that the law does not prohibited the credit card companies from putting a restriction on the interest rates that can be applied to student accounts.

It is a campus based protection and their concern is to “make sure that those responsible for the country’s economic future aren’t mortgaging their own future.” Tim Mensing, president of the student body, University of Washington.

The law prohibits companies from giving credit cards to consumers under 21 unless they have a co-signer or submit evidence of their ability to make proper payments.

Daryl Bowen Physio-therapy major here at Cerritos thinks “being 18 years old your not exactly the smartest person, like people have come a lot further then they have in the last three years, after 18 years old then they did before. So i think that yeah there is a little maturity that we need and i think that being 21 like you reach that maturity and being 18 your not quite there so yeah i think its a big decision that like an 18 year old shouldnt have to worry about.”

It also bars companies from offering students any tangible inducement for opening an account at a campus event, lastly it requires companies to report annual reports to the Federal Reserve Board.

L Cunningham a student in the Cerritos nursing program believes “Preying on students isnt fair, i think they should implement some type of reform and help secure college students future, instead of becoming more of a problem in debt.”

Credit companies are prohibited from “knowingly” offering gifts, coupons, or any other property in their marketing strategy.

Colleges and universities are now required to publicly disclose any contract or agreement between a card holder and creditor for the purpose of marketing a credit card.

To satisfy the Federal Reserve Board creditors can either publish records on the internet or upon request, as long as the procedure for making a request is done reasonably and completed in a timely manner.

This means that any card agreement where a student has been issued a card will be subjected to disclosure by the credit card company including those independently incorporated alumni associations.

Some colleges and universities are already starting to post their credit card arrangements like the University of Iowa.

Given the likelihood that some creditors may ask for such contracts, along with reason on what the money was spent on that the student received.

Along with scholarship award letters and how the student is supporting their education. The new law recommends that colleges provide education and counseling about credit cards and debt education as a part of any schools orientation.