It seems that lawmakers aren’t done yet with making the lives of credit card company executives miserable. A new bill has been introduced in the state of California entitled the College Student Credit Protection Act. The goal of this bill is to prevent credit card solicitors from pushing their credit cards on students while on campus.
This isn’t exactly news – this fact has been getting reported over and over for awhile now including within this very blog. In fact, current research indicates that 71% of college aged cardholders do not pay off their entire credit card balance at the end of the month. Conversely, 55% of all cardholders manage to get their cards paid off at the end of every billing cycle. Furthermore, 83% if undergraduate cardholders had at least one credit card in 2001, while the average student has four.
Despite the fact that this is not new news, the goal behind the bill is a good one since it seeks to help reduce this ever-growing phenomenon. Today, the average college senior has $3,262 in credit card debt upon graduation. If something doesn’t change, the current trends indicate this number will only continue to grow.
The bill introduced by Coto will require California universities to disclose information in regard to the marketing arrangements they have made with credit card companies when it comes to on campus marketing. It also includes a clause prohibiting credit card companies from offering gifts to the students that complete applications. Many credit card companies offer freebies such as tote-bags, pens, and Frisbees for completing an application. Believe it or not, this is plenty incentive for many college students to complete an application as they fail to realize the significant impact the application may have on their future financial stability.
Perhaps this bill is a step in the right direction, although college students will still be able to get their hands on credit cards even if offers are not made on campus. Nonetheless, if the temptation and convenience of completing applications is removed, it just might lead to less credit cards in the wallets of college students.
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Retailers need to be banned from pushing or "hustling" credit card offers to customers. It should be a Opt In policy not opt out. The only way a customer should apply for a credit card is by them filling out an application by thier own discovery and not be solicited for it. Call your lawmakers record their conservation and post their responses on YouTube. That way word gets out, and they are pressured by Joe Citizen not Mitt Romney Corporations. Go to City Hall demand a city ordinance tell them it is for the children and their future. Together we can get credit card abuses to stop!!!! The city can have random inspections on these businesses. If they can enforce Alcohol laws they can enforce this!!! Don't stop until this is done, please.