August 30, 2014

Scrolling Headlines:

Suspect in custody after break-ins on Lincoln Avenue -

Thursday, August 28, 2014

UMass crime alerts reveal reports of lewd acts -

Friday, August 22, 2014

UMass women’s soccer hopes added depth brings more consistency in 2014 -

Friday, August 22, 2014

UMass mourns death of alumnus and journalist James Foley -

Thursday, August 21, 2014

Kassan Messiah, Trey Seals to shoulder pass rushing responsibility for UMass football -

Thursday, August 21, 2014

UMass names Blake Frohnapfel as the starting quarterback -

Monday, August 18, 2014

Decision looms for Mark Whipple as UMass football looks to name starting quarterback -

Wednesday, August 13, 2014

Former UMass star Marcel Shipp overseeing a strong running back competition -

Saturday, August 9, 2014

Former UMass basketball star Chaz Williams signs professional contract in Turkey, still eyeing NBA career -

Thursday, August 7, 2014

Minutemen anxious to display aggressive defense -

Tuesday, August 5, 2014

UMass football turns the page, excited for 2014 season -

Monday, August 4, 2014

UMass student struck and killed by vehicle Thursday night -

Friday, August 1, 2014

UMass receives anonymous $10.3 million gift -

Wednesday, July 30, 2014

UMass football summer coverage 2014 -

Tuesday, July 29, 2014

Chiarelli: Sam Koch’s impact evident in those who knew him best -

Monday, July 21, 2014

Longtime UMass men’s soccer coach Sam Koch dies after two-year battle with sinus cancer -

Monday, July 21, 2014

Southwest evacuated after gas leak -

Tuesday, June 17, 2014

UMass Rowing finishes NCAA Championships, ends year ranked No. 21 in the nation -

Sunday, June 1, 2014

Two UMass basketball alums to compete for a lofty prize in The Basketball Tournament -

Friday, May 23, 2014

Commencement Photos 2014 -

Thursday, May 15, 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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