Cord Byrd: “today I voted in favor of Mrs. Feinstein's amendment to the bankruptcy reform bill that would limit the amount of credit…”

“today I voted in favor of Mrs. Feinstein's amendment to the bankruptcy reform bill that would limit the amount of credit that credit card companies can extend to underage consumers. For the benefit of my West Virginia constituents, I offer a brief explanation of my vote. I supported the Feinstein amendment because I agree with the general philosophy behind it. Credit card companies are far too willing to offer credit cards to young, financially-inexperienced consumers. Many of these young consumers are college students without any income or credit history. Too often these young consumers get in over their head when credit card companies offer unlimited credit to buy whatever they want, whenever they want. The Feinstein amendment is a commonsense approach that would restrict the amount of credit that could be offered to these young consumers, unless they gain parental approval or are able to demonstrate their financial independence. However, I disagree that $2,500 is an adequate credit limit for protecting underage consumers. My own view is that this amount is too high. I would prefer to see a $500 credit limit. Even with a credit limit of $2,500, young consumers are at risk of accumulating massive credit card debt without the ability to repay it. A smaller credit card limit is more likely to reduce this risk.…”