Legislation that would ban credit card companies at colleges advances
12:48 PM, Dec 24, 2012 |
TRENTON — Legislation that would ban credit card companies from soliciting students on public college campuses now awaits Gov. Chris Christie’s signature.
The bill was approved by the state Senate last week.
Some schools, such as Rutgers-Camden and Rowan University, already prohibit the practice, and some schools have never allowed it.
“We got rid of the practice and haven’t had credit card companies on campus in about a decade,” Rowan University spokesman Joseph Cardona said.
State Sen. Kevin O’Toole, R-Essex, the main sponsor of the bill in the Senate.
“Credit card debt and student loan debt are rampant issues in our society,” he said. “Credit card companies often use merchandise displays offering free sports T-shirts or blankets to attract young people.”
O’Toole said the tactic “leads young people to open accounts they cannot keep solvent, which can bury them in debt caused by unsuspectingly high interest rates.”
Assemblywomen Celeste Riley, D-Cumberland, and Connie Wagner, D-Bergen, were the main Assembly sponsors. Riley said the bill would prevent credit card companies from preying on college students, who often are unaware of the high interest rates cards carry.
“This bill would protect many unsuspecting college students from the predatory practices often employed by credit card companies,” Riley said.
The legislation also would prevent colleges from making money at the expense of students by signing lucrative marketing agreements with the credit card companies. Recent reports have highlighted how colleges or campus alumni organizations have received hefty sums in marketing dollars from credit card companies. They include the Penn State University Alumni Association, which took in $4.2 million in 2010; the University of Tennessee; and the University of Southern California.
The bill prohibits a public college or university, its agents or a student organization from entering into an agreement for the direct merchandising of credit cards either in person or in displays.
Cardona said Rowan never had licensing agreements with credit cards companies and never made money from those companies through the campus organizations.
“What was happening before was the marketing of credit cards was being used as a fundraiser for an organization and they were pushing it on students,” he said. “It just was not a good practice on a college campus.”
The bill was approved by the state Senate last week.
Some schools, such as Rutgers-Camden and Rowan University, already prohibit the practice, and some schools have never allowed it.
“We got rid of the practice and haven’t had credit card companies on campus in about a decade,” Rowan University spokesman Joseph Cardona said.
State Sen. Kevin O’Toole, R-Essex, the main sponsor of the bill in the Senate.
“Credit card debt and student loan debt are rampant issues in our society,” he said. “Credit card companies often use merchandise displays offering free sports T-shirts or blankets to attract young people.”
O’Toole said the tactic “leads young people to open accounts they cannot keep solvent, which can bury them in debt caused by unsuspectingly high interest rates.”
Assemblywomen Celeste Riley, D-Cumberland, and Connie Wagner, D-Bergen, were the main Assembly sponsors. Riley said the bill would prevent credit card companies from preying on college students, who often are unaware of the high interest rates cards carry.
“This bill would protect many unsuspecting college students from the predatory practices often employed by credit card companies,” Riley said.
The legislation also would prevent colleges from making money at the expense of students by signing lucrative marketing agreements with the credit card companies. Recent reports have highlighted how colleges or campus alumni organizations have received hefty sums in marketing dollars from credit card companies. They include the Penn State University Alumni Association, which took in $4.2 million in 2010; the University of Tennessee; and the University of Southern California.
The bill prohibits a public college or university, its agents or a student organization from entering into an agreement for the direct merchandising of credit cards either in person or in displays.
Cardona said Rowan never had licensing agreements with credit cards companies and never made money from those companies through the campus organizations.
“What was happening before was the marketing of credit cards was being used as a fundraiser for an organization and they were pushing it on students,” he said. “It just was not a good practice on a college campus.”
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