Illinois Cracking Down on Campus Credit Cards
Gov. Pat Quinn of the state of Illinois has just signed some new legislation into law that will make it more difficult for credit card companies to market on both public and private college campuses in the state of Illinois.
College campuses have long been a haven for credit card issuers as they eagerly market to college students, most especially at the beginning of each new school year. These young adults are seen as outstanding candidates for credit cards that the card issuers are trying to build long-term relationships with.
The new legislation which goes into effect on January 1, 2010 will make it a bit more difficult for students to apply for a credit card on campus by curbing the traditional marketing activities of the credit card companies.
Specifically, Illinois colleges and universities will be prohibited from selling their students contact information to credit card companies. The credit card companies have long used this information to send credit card solicitations to students through traditional mail and e-mails on the Internet.
For credit card companies that do continue to market on campus, and it will be interesting to see how many will with these new rules in effect, they will be required to offer some sort of financial education for freshmen in one form or another for those that apply for a credit card
The long-standing practice of offering free gifts such as T-shirts, umbrellas, pizza, etc., etc. as an enticement for filling out credit card applications will also be prohibited. And any organizations that have affiliations with the college or university such as alumni and booster groups must disclose any contracts that they have with credit card companies.
These new laws have been put into effect in an effort to protect students, basically from themselves. Many students when they first arrive on campus find the credit card offers too alluring to resist and suddenly find themselves thousands of dollars in debt.
Gov. Quinn would like to make it a little more difficult for the students to get their hands on credit cards. There is no doubt that many students, especially incoming freshmen, are ill-prepared for the responsibilities of having a credit card entails. We will have to wait and see how much an effect these new laws will have.
Related Information:
- Credit Card Companies On Campus Credit card companies are becoming ever more intrusive on college campuses....
- Proposed Bill Will Make It Mandatory To Disclose Dangers Of Debt There is a new bill being discussed whereby credit card companies would be forced to educate prospective cardholders on the danger of debt....
- College Student Credit Cards – Know What You Are Getting College student credit cards should be carefully examined and compared before an application is ever submitted....
- College Students and Credit Card Debt Read this informative article about students and credit card debt....