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Tuesday, May 1, 2012

Credit Card Companies ignoring ban on marketing to college students

In 2009, Congress passed the Credit Card Accountability Responsibility and Disclosure Act, which in part forbid credit card companies from advertising to students under the age of 21.  Even I am young enough to remember going through the registration process the day before classes started and having shoved in my hands credit card application after credit card application, even receiving "goodies" for beginning life in the dorm.  While I was taught well enough by my parents to avoid that credit card trap, I am sure there were many who ended up deep in debt as a result.

A recent survey by a University of Houston law professor indicates that credit card companies are still advertising to college students, despite the Credit Card Accountability Responsibility and Disclosure Act going into effect in 2010.  University of Houston law professor Jim Hawkins surveyed over 500 students.  68 percent of those surveyed had received credit card offers in the mail in the last year and 40 percent had witnessed credit card companies promoting gifts to students (i.e. the "goodies" I recall).

Its sad when credit card companies get away with breaking the law, particularly at the expense of those just starting out.  Its tough enough to make it starting out with no debt, much less a pile of credit card debt, not to mention student loans.


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