October 24, 2014

Scrolling Headlines:

Michael Kimmel speaks to UMass students about ‘Guyland’ -

Thursday, October 23, 2014

UMass football looks for third straight win against Toledo on Saturday -

Thursday, October 23, 2014

‘Love is Strange’ is beautiful, painful and groundbreaking -

Thursday, October 23, 2014

White supremacy and settler colonialism at UMass -

Thursday, October 23, 2014

UMass hockey hopes first win will propel them past Hockey East rivals -

Thursday, October 23, 2014

UMass’ second line playing and succeeding with young talent early in the season. -

Thursday, October 23, 2014

‘The Good Wife’ returns as strong as ever -

Thursday, October 23, 2014

Professor receives grant to cover massive election survey panel -

Thursday, October 23, 2014

Unions rally over recent concession proposals -

Thursday, October 23, 2014

NFL Pick’em games return to the Massachusetts Daily Collegian -

Thursday, October 23, 2014

UMass celebrates Campus Sustainability Day -

Thursday, October 23, 2014

“Fury” falls just short of greatness -

Thursday, October 23, 2014

Minutewomen look to continue their season in weekend game against Saint Bonaventure. -

Thursday, October 23, 2014

New meal plans receive mixed reviews from students -

Thursday, October 23, 2014

ISIS’s magazine is good for the West -

Thursday, October 23, 2014

UMass women’s soccer controls its own destiny as conference tournament approaches -

Wednesday, October 22, 2014

UMass soccer deploys new formation with Keys, Jess -

Wednesday, October 22, 2014

UMass calling on young swimmers to continue strong start to the year -

Wednesday, October 22, 2014

WMU, Ohio, NIU pick up wins in busy MAC weekend -

Wednesday, October 22, 2014

A comprehensive guide to the Ebola virus -

Wednesday, October 22, 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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