Scrolling Headlines:

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March 25, 2017

An open letter to the students of UMass -

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Pat Kelsey informs UMass AD Ryan Bamford of change of heart just 35 minutes before scheduled press conference -

March 23, 2017

Past and present UMass football players participate in 2017 Pro Day Thursday -

March 23, 2017

Pat Kelsey reportedly backs down from UMass men’s basketball coaching position -

March 23, 2017

Students react to new fence around Townehouses -

March 23, 2017

‘Do You Have The Right To Do Drugs?’ debate held in Bowker Auditorium -

March 23, 2017

UMass men’s lacrosse looks to build on three-game winning streak against Brown -

March 23, 2017

UMass softball riding five-game win streak into first Atlantic 10 showdown -

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Sanzo: Inability to win close games has hurt UMass baseball -

March 23, 2017

Hannah Murphy scores 100th career goal in UMass women’s lacrosse 16-9 win over Harvard -

March 23, 2017

Old age does no harm to indie rock legends The Feelies -

March 23, 2017

A track-by-track breakdown of Drake’s new project -

March 23, 2017

When a president lies -

March 23, 2017

Let them eat steak, and other gender norms I hate -

March 23, 2017

Dissecting Science: Episode Two -

March 22, 2017

Holy Cross 10-run eighth inning sinks UMass baseball -

March 22, 2017

UMass students react to Spring Concert lineup -

March 22, 2017

Letter: Vote yes for Amherst -

March 22, 2017

You don’t have to walk alone -

March 22, 2017

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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