Scrolling Headlines:

Experienced Ohio State club too much for UMass hockey in 3-0 loss -

October 22, 2017

Season-high 29 saves from Matt Murray proves lone highlight in UMass hockey’s 3-0 shutout loss to Ohio State -

October 22, 2017

UMass football picks up first win of the season in blowout win over Georgia Southern -

October 21, 2017

Student in critical condition after pedestrian-vehicle accident on Friday -

October 21, 2017

UMass women’s soccer fails to secure spot in A-10 tournament with loss to Saint Louis -

October 21, 2017

Struggles with special teams sinks UMass hockey -

October 21, 2017

UMass hockey drops second of the year in 3-1 loss to Ohio State -

October 20, 2017

Amazon textbook contract ending in December 2018 -

October 19, 2017

UMass field hockey heads into crucial A-10 matchup -

October 19, 2017

2017 Hockey Special Issue -

October 19, 2017

International Relations Club tackles tough issues at ‘Foreign Policy Coffee Hour’ -

October 19, 2017

Sexual assault reports spike on campus -

October 19, 2017

Californian students react to wildfires back home -

October 19, 2017

‘My Little Pony: The Movie’ is a surprising animated treat, whether you’re a fan of the show or not -

October 19, 2017

With a young team, Carvel is preparing the UMass hockey team to thrive -

October 19, 2017

Letter: UMass hockey is great, but where are the students? -

October 19, 2017

Boino’s blast gives UMass men’s soccer sole possession of first place in the Atlantic 10 -

October 19, 2017

UMass freshmen look to play physical, make an impact and improve early on -

October 19, 2017

UMass hockey sets out to create new program, identity in 2017-18 -

October 19, 2017

Cale Makar: UMass hockey’s crown jewel -

October 19, 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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