Scrolling Headlines:

Nick Mariano, Zach Oliveri transferring from UMass men’s lacrosse program -

Wednesday, July 1, 2015

Four months after banning Iranian students from certain graduate programs, UMass announces new measures to ensure compliance with U.S. law -

Wednesday, July 1, 2015

Justin King sentenced to eight to 12 years in prison -

Monday, June 29, 2015

Two future UMass hockey players selected in 2015 NHL Draft -

Saturday, June 27, 2015

Supreme Court ruling clears way for same-sex marriage nationwide -

Friday, June 26, 2015

Former UMass center Cady Lalanne taken 55th overall by Spurs in 2015 NBA Draft -

Friday, June 26, 2015

Second of four men found guilty on three counts of aggravated rape in 2012 UMass gang rape case -

Wednesday, June 24, 2015

Boston bomber speaks out for first time: ‘I am sorry for the lives I have taken’ -

Wednesday, June 24, 2015

King claims sex with woman was consensual during alleged 2012 gang rape -

Tuesday, June 23, 2015

Wrongful death suit filed in death of UMass student -

Thursday, June 18, 2015

Ryan Bamford uses online Q&A session to discuss UMass football conference search, renovation plans, cost of attendance -

Wednesday, June 17, 2015

Opening statements delivered, first witnesses called in second trial for alleged 2012 gang rape at UMass -

Wednesday, June 17, 2015

UMass Board of Trustees approves rise in tuition, student fees -

Wednesday, June 17, 2015

Former Minutewoman Quianna Diaz-Patterson named to Puerto Rican national softball team -

Tuesday, June 16, 2015

UMass rowing’s Jim Dietz inducted into CRCA Hall of Fame -

Tuesday, June 16, 2015

Jury selection begins Monday in second gang rape trial -

Monday, June 15, 2015

Students turn attention to state legislators as decision on UMass budget looms -

Saturday, June 13, 2015

Alumna and next director of Brooklyn Museum Anne Pasternak ‘created her own path’ -

Thursday, June 11, 2015

UMass graduate crowned head of 600-year-old Indian kingdom -

Thursday, June 11, 2015

Committee recommends UMass increase tuition, student fees for in-state undergraduates -

Wednesday, June 10, 2015

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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