WASHINGTON (WKOW)--The U.S. Senate will soon debate a bill that would, among other things, require the co-signer of a credit card to approve any credit limit increase if the primary credit card holder is under the age of 21.
The provision was an amendment by Wisconsin Sen. Herb Kohl (D) to the Credit Card Accountability and Disclosure Act of 2009 that passed the Senate Banking Committee Tuesday.
"Currently, co-signers are not notified of any credit limit increase," Kohl said. "If you are going to bear the debt burden, you should have a say in the limit. This legislation is important in order to protect co-signers and keep younger credit card holders with in their limits."
This amendment requires any increase in credit limit to be approved by the co-signer of the credit card, which includes parents, guardians, and spouses for those under age 21.
The Credit Card Accountability and Disclosure Act of 2009 was voted out of the Banking Committee by a vote of 12-11 and now awaits Senate floor action.