Scrolling Headlines:

The Collegian live tweets Boston Calling -

May 28, 2016

UMass baseball finishes season with sweep over George Mason -

May 22, 2016

UMass women’s lacrosse falls in NCAA quarterfinal -

May 22, 2016

‘Green Room’ is a bloody blast of survival horror -

May 21, 2016

DaLuz: Boston Celtics stuck trudging in the mud -

May 18, 2016

Despite tallying double-digit hits, UMass baseball falls to Fairfield Tuesday afternoon -

May 17, 2016

Radiohead returns to the top with gorgeous, illuminating ‘A Moon Shaped Pool’ -

May 16, 2016

UMass women’s lacrosse advances to quarterfinal of NCAA tournament -

May 16, 2016

UMass baseball outlasts Rhode Island in series finale behind strong pitching of Brandon Walsh -

May 15, 2016

Eileen McDonald’s overtime goal advances UMass women’s lacrosse in NCAA tournament -

May 14, 2016

12 UMass students face possible arrests in connection to an alleged bad LSD trip -

May 14, 2016

UMass baseball falls in first-ever Division I matchup with UMass Lowell 7-3 -

May 11, 2016

UMass baseball gets shut out in nonconference matchup with UConn -

May 10, 2016

UMass women’s lacrosse tops Richmond, wins eighth straight Atlantic 10 championship -

May 9, 2016

UMass baseball salvages last game of weekend series with Richmond behind strong eighth inning -

May 9, 2016

UMass women’s lacrosse beats St. Joe’s, advance to Atlantic 10 championship game -

May 7, 2016

Lack of offense plagues UMass baseball in game two of doubleheader with Fordham -

May 1, 2016

UMass women’s lacrosse tops Davidson 12-5 on Senior Day -

May 1, 2016

Two arrested after report of aggravated robbery in Washington Hall last night -

May 1, 2016

Former UMass wide receiver Tajae Sharpe selected in fifth round of 2016 NFL Draft -

April 30, 2016

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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