Credit card reform bill: "Bye-bye" to Hello Kitty?

The Senate version of a bill forcing credit card issuers to adopt more consumer-friendly terms was approved today, 90-5. According to the New York Times account  of the debate on the Senate floor yesterday,  Sen. Byron L. Dorgan, D-N.D., criticized a marketing pitch by a major issuer for a "Hello Kitty" credit card aimed at children 10 to 14 years of age, saying, "I'd just love to know the person who thought this up and to say, 'Are you nuts? What on earth are credit companies doing soliciting young kids to get a credit card?' "

We can provide at least a partial answer to Dorgan's question. Back in June 2005, Consumer Reports Money Adviser singled out the Hello Kitty Debit MasterCard as a card that was being promoted  as teaching kids age 10 to 15 to "learn great money-management skills," while at the same time delivering a companion message to spend, spend spend.  The website promoting the card urged young cardholders to "shop 'til you drop," and  the iconic  kitty pictured on the card was decked out for a spree, purse at the ready.  The pre-paid card also was loaded with hefty fees--another real-world lesson about using plastic. 

We asked Peter Klamka,  president of Legend Credit,  the company that developed the Hello Kitty card,  about the  marketing logic behind the card.  "If one teenager gets the card,  then others see it and want one too," he said.  "There's a whole Hello Kitty culture that's kind of like Nascar for young women."

Fortunately, the version of credit card reform legislation approved today aims to protect consumers under age 21 from getting deluged with unsolicited credit card offers. The bill would require an over-21 co-signer or proof of an independent means of repayment for any new cardholder in the under-21 crowd. 

President Obama, who has publicly called for an end to card practices such as "anytime, any-reason rate hikes"  has asked that the House and Senate agree on a final version of a credit card reform bill for him to sign into law by the end of May.--Andrea Rock

Comments

[MrBadExample]

My fear is that this well meaning piece of legislation may stall the recovery. Like it or don't we are a nation of spenders and much of that spending is done with credit cards.

The law may well restrict access to credit to the point of stalling out or delaying the recovery.

[Mary]

that's actually a picture of the debit card not the credit card

[Kim]

Um, dear misogynistic sirs;
NASCAR is NASCAR for girls.
Just thought you'd like to know. Some of us wimmins can even drive ourselves around! In a car! On a track, sometimes!

[Jason Roberts]

What's up with the under 21 co-signer clause? Should we go back to having 21 as the voting age too? People who are 18 are adults in basically everything except drinking. If someone under 21 needs a co-signer or a verified independent means of repayment, why wouldn't someone over 21 need a method of repayment? A bad decision is a bad decision regardless of age.....

[HC]

OH HOW CUTE! I WANT ONE!

erh.. I mean bad. How dare they target our innocent youth.

[Traci]

I am 36 years old and I LOVE my BofA Hello Kitty debit card!

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[MikeDaGoOn]

So, I guess other icons like Mickey Mouse, Betty Boop and Precious moments are appropriate? (all included within the BOA My Expressions program). We live within a vast population; If a portion of that population enjoys a nostalgic childish print on their card, the so be it. Regards to the younger generation's spending habits, its the sole responsibility is based on parental guidance. The over-21 co-signer proposal is a great idea; however, I believe that statistics might work better then a giant Hello Kitty Visa-debit card during a senate debate.

[DB from PA]

Well, I was just introduced today to this legislation's fallout. I am a responsible credit card holder, never over limit, rarely carry a balance, always on time with payments, and I just got hit with a interest increase from 7.9% to 17.9%. Thank you, President Obama.