September 22, 2014

Scrolling Headlines:

Season-ticket holders excited to be a part of new era of UMass football -

Monday, September 22, 2014

UMass can’t squander Saturday’s ‘must win’ affair -

Monday, September 22, 2014

‘Destiny’ videogame does not reach potential -

Monday, September 22, 2014

How one Facebook post made me an SGA senator (and why we need to fix it) -

Monday, September 22, 2014

The police aren’t out to protect us -

Monday, September 22, 2014

Social inequities are a strong presence at UMass -

Monday, September 22, 2014

UMass baseball alumni return to Amherst with a victory in Alumni Game -

Monday, September 22, 2014

Wearable tech the latest fashion trend -

Monday, September 22, 2014

UMass field hockey loses 2-1 to Northeastern on Sunday -

Monday, September 22, 2014

Visiting Writers Series welcomes Mitchell S. Jackson -

Monday, September 22, 2014

SGA working toward diversifying UMass campus -

Monday, September 22, 2014

Local poetry festival honors works of Robert Frost and Emily Dickinson -

Monday, September 22, 2014

UMass football blown out in all phases against Penn State -

Saturday, September 20, 2014

Penn State rushes over UMass football 48-7 -

Saturday, September 20, 2014

Luke Pavone jumpstarts UMass men’s soccer’s comeback effort in win over Fairfield -

Saturday, September 20, 2014

UMass men’s soccer earns first win of the season in emotional home opener -

Friday, September 19, 2014

Ed Davis report leaves nobody blameless -

Friday, September 19, 2014

White House starts public awareness drive to prevent sexual attacks on campus -

Friday, September 19, 2014

Work already underway for SGA speaker Sïonan Barrett -

Thursday, September 18, 2014

UMass in for a challenge against Penn State, QB Hackenberg -

Thursday, September 18, 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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