NSW: Plans for teenage credit cards to be investigated

AAP General News (Australia)
08-24-2001
NSW: Plans for teenage credit cards to be investigated

New South Wales Fair Trading Minister JOHN WATKINS has ordered an investigation into
plans by major credit card companies to introduce special cards for teenagers.

Visa and MasterCard already operate schemes in the United States for cards to teenagers
with prepaid limits, and are considering the same in Australia.

American Express has a scheme in the US also but is unlikely to follow suit here.

American Express requires their card holders to have a sound credit history and three
years of continual employment and residence.

A spokesman for Mr WATKINS says he believes banks are just testing the waters, but
he has asked his department to examine the cards.

He says teenagers who want to purchase goods over the internet can use their parents'
credit cards.

The spokesman says there is also concern about Australia's high level of credit card debt.

AAP RTV sal/nf/wz/jn

KEYWORD: CARDS (SYDNEY)

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