Prohibitive Rule for Credit Cards Generates Cosigner Industry.

Lagrange multiplier posted on Sat, Oct 2 2010 10:16 PM

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http://www.pri.org/business/economic-security/college-students-skirt-rules-to-get-credit-cards2166.html

New laws governing credit cards went into effect in February of 2010, but they're really kicking in now that college students are going back to school. Under the new law, people under 21 years old cannot get a credit card without an adult cosigning. "This is a big big change," Kobliner says. "This has never happened before."

At the same time, college students are now simply paying older people to cosign for them. To avoid telling their parents about their credit cards, students are having older friends or graduate students sign on to the credit cards. Kobliner reports that businesses have popped up that offer cosigners at a cost.