December 20, 2014

Scrolling Headlines:

BLOG: UMass football recruiting roundup: UMass signs DT, offers two kickers -

Wednesday, December 17, 2014

UMass President Robert Caret resigns to become chancellor of the University of Maryland system -

Wednesday, December 17, 2014

Brandon Montour: ‘It felt great to be out there’ -

Wednesday, December 17, 2014

UMass falls to Northeastern in Brandon Montour’s debut -

Tuesday, December 16, 2014

Cady Lalanne continues to evolve as a potential outside shooting threat -

Tuesday, December 16, 2014

UMass hockey returns to action against Northeastern, Montour to make season debut -

Tuesday, December 16, 2014

Demetrius Dyson remains hopeful despite rocky start to season -

Tuesday, December 16, 2014

Former UMass soccer star Matt Keys aims to continue his career professionally -

Monday, December 15, 2014

Pierre-Louis, Dillard shine in UMass victory over Holy Cross -

Sunday, December 14, 2014

Passing, spacing improved in UMass victory -

Saturday, December 13, 2014

Prolific first half propels UMass past Canisius, 75-58 -

Saturday, December 13, 2014

UMass Faculty Senate hears ad hoc committee’s report on FBS football, shoots down contentious motion -

Thursday, December 11, 2014

Minutemen hope improved spacing will aid struggling half court offense -

Wednesday, December 10, 2014

Divest UMass urges Board of Trustees to split with fossil fuel industry -

Wednesday, December 10, 2014

Cady Lalanne accustomed to dealing with increased attention -

Tuesday, December 9, 2014

Front to Back: Week of Dec. 1, 2014 -

Monday, December 8, 2014

Chiarelli: UMass basketball running out of time to find its identity -

Monday, December 8, 2014

Minutewomen take care of business against American -

Monday, December 8, 2014

UMass women’s basketball handles American, 71-61 -

Sunday, December 7, 2014

UMass basketball downed by Florida Gulf Coast 84-75 -

Sunday, December 7, 2014

How new credit card rules will impact students

A series of new restrictions for credit card companies, which went info effect last week after being passed Congress a year ago, will impact anyone who has a credit card, but it will especially affect college students.

Credit card companies have long used questionable marketing practices in order to get America’s youth to sign up for a credit card. The companies often see young adults as being inexperienced with managing finances and therefore much more likely to misuse credit cards and therefore pay more in penalties.

“In spring of 2008, only 15 percent of freshmen had a zero balance, down dramatically from 69 percent in the fall of 2004. The median debt freshmen carried was $939, nearly triple the $373 in 2004,” according to Sallie Mae’s “How Undergraduate Students Use Credit Cards,” published April 2009.

Generally, credit card companies use methods such as switching payment dates and raising credit limits so that cardholders incur debt.  This extra debt means a number of new fees and increased interest rates, which is how these companies make their money.

With the new legislation kicking in, these practices have been at least regulated, if not banned.  The following restrictions in the “Credit Card Accountability Responsibility and Disclosure Act” (Credit CARD Act) passed on March 19, 2009, will directly affect students:

  • New laws will require a co-signer for student applicants under 21, unless they can prove they have a steady source of income.
  • No more freebies: companies are no longer allowed to offer students token gifts such as free pizza or t-shirts, etc. just for applying.
  • Fewer prescreened offers, meaning companies such as Equifax or Experian can not send credit card companies your information in order for them to send out “pre-approved offers.”
  • More transparency about college affinity card programs, meaning that credit card companies will have to disclose their marketing deals with colleges to the Federal Reserve Board.  Schools must also disclose how much they make off these deals.
  • Colleges are urged to limit, or restrict, credit card marketing on their campus.

While these new regulations will limit the credit card companies’ ability to use their old tricks, it certainly does not prevent them from implementing new ones.

“Of the 10 practices that have been outlawed, the credit card companies have already found eight new devices for getting around them,” said Elizabeth Warren, Chair of the Congressional Oversight Panel, in a recent television interview.

Even with all their traps, credit card companies cannot take advantage of consumers if the cardholder borrows responsibly and takes the time to read the fine print on their statements. Just keep one thing in mind: caveat emptor, these companies are after their pound of flesh.

Matt Bouteillier can be reached at mbouteil@student.umass.edu.

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