45th legislature - STATE OF NEW MEXICO - second session, 2002

REQUESTING THE NEW MEXICO LEGISLATIVE COUNCIL TO ASSIGN TO A LEGISLATIVE INTERIM COMMITTEE THE TASK OF STUDYING THE ISSUES SURROUNDING THE ISSUANCE OF CREDIT CARDS TO YOUNG ADULTS.

WHEREAS, college students, recent high school graduates and other young adults are frequently solicited to apply for credit cards before they are employed full time and before they have acquired a complete understanding of financial matters and credit management; and

WHEREAS, young adults who manage their credit and finances responsibly can enjoy the many benefits of using credit cards, including convenience, security and the ability to purchase goods or services in an emergency; and

WHEREAS, not every young adult who is issued a credit card fully appreciates the responsibilities associated with using a credit card and the risks associated with irresponsible use of credit; and

WHEREAS, an inability or unwillingness to properly manage credit may result in the accumulation of high debt and a poor credit rating just as a young adult may be seeking to start a family, purchase a vehicle or home or pay off student loans; and

WHEREAS, credit card companies have taken some steps to educate young adults and their parents about the wise use of credit; and

WHEREAS, there may be ways to educate young adults about wise credit card use and limit the misuse of credit cards that do not adversely impact the ability of credit card companies to do business; and

WHEREAS, the New Mexico legislative council, at its December 19, 2001 meeting, indicated that it would create an interim committee during the 2002 interim to study the issue of so-called "payday loans", and it would be appropriate for that committee to also study the issues surrounding the issuance of credit cards to young adults;

NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the New Mexico legislative council be requested to assign the appropriate interim committee the task of studying issues surrounding the issuance of credit cards to young adults and reporting its findings and recommendations, if any, to the first session of the forty-sixth legislature; and

BE IT FURTHER RESOLVED that a copy of this memorial be transmitted to the New Mexico legislative council.