July 28, 2014

Scrolling Headlines:

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

Two arrested in relation to series of vandalism -

Wednesday, May 14, 2014

Students push for relocation of the Center for Counseling and Psychological Health -

Monday, May 12, 2014

Video: No. 14 UMass WLAX ends season in loss to Loyola (MD) -

Saturday, May 10, 2014

No. 14 UMass women’s lacrosse season ends in loss to Loyola (MD) -

Saturday, May 10, 2014

Sixth inning rally propels UMass past Dayton 7-2 -

Wednesday, May 7, 2014

McMahon, Ferris and McGovern: Not your usual transfer story -

Sunday, May 4, 2014

Women’s lacrosse defeats Richmond 10-6 to win sixth straight A-10 Championship -

Sunday, May 4, 2014

No. 13 UMass women’s lacrosse knocks off Duquesne 16-3 to reach Atlantic 10 finals -

Friday, May 2, 2014

UMass one of 55 schools currently facing investigation over handling of sexual assault cases -

Thursday, May 1, 2014

Two thefts reported at library -

Thursday, May 1, 2014

Senior Columns 2013-2014 -

Wednesday, April 30, 2014

UMass Dining proposes major meal plan changes -

Wednesday, April 30, 2014

UMass baseball beats UConn for first time since 2007 -

Wednesday, April 30, 2014

MTV’s seemingly controversial new show proves to be ‘Faking It’ -

Wednesday, April 30, 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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