New Law to Corral Credit Card Companies on Campus

A new law will go into effect on September 1st in Texas which will make it more difficult for credit card issuers to market their credit cards on college campuses.

In response to the seemingly endless negative correlation between young college students and credit card debt, the new legislation will be aimed at protecting students from becoming entangled in the credit card game.

The new law will allow governing boards to determine where and when a credit card company can market on each college campus.

It will also require credit card companies to provide educational materials about debt management during all campus marketing activities to ensure students have a better understanding of how credit works.

The law will prohibit credit card issuers from distributing gifts such as t-shirts, candy bars, hats, frisbees and other merchandise to students in exchange for applying for credit cards.

And any colleges and universities that allow credit card marketing on campus must also incorporate debt education into student orientation programs.

Any representative who intentionally breaks the law can be fined $2,500 for each violation.

The new legislation is definitely a step in the right direction, although many campuses have already banned credit card companies outright, so some schools will see little change.

It is definitely an issue that needed to be addressed, though more should be done to educate students about debt regardless of a college’s stand on credit card marketing.

Students should receive credit help on such topics as credit card finance charges and how to read a credit report.

Many young students apply for credit cards the minute they arrive on college campuses, and a large percentage of them get into serious trouble, which can often have a negative effect on their credit scores for years.

Hopefully similar initiatives will launch in more states nationwide in the near future.

Related Topics:

1. Survey Finds Credit Card Use Rampant on Campus
2. Colleges and Credit Card Companies Have Cozy Relationship
3. One in Four College Students Graduates with $5,000 in Credit Card Debt
4. College Students and Credit Card Debt
5. Student Credit Cards