WebXtra: New bill limits credit for young Americans

By Philippe Djegal - email

TYLER, TX (KLTV) - Americans under the age of 21 will now need a co-signer to make sure the consumer can pay off the bill. That means the co-signer will also be responsible for payment. That's according to the Credit Cardholders' Bill of Rights Act of 2009.

Congress passed the Bill of Rights Act of 2009 this week, and President Obama says he wants to sign the legislation into law by Memorial Day. The bill is designed to change the way credit is distributed, and will protect consumers from unfair lending practices.

The legislation will have a big impact on young Americans. The bill, an amendment to the Truth and Lending Act, will prohibit consumers under the age of 18 from obtaining credit unless the consumer's parent or legal guardian is named the primary account holder.

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