August 11, 2009
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News: Illinois Gov Signs CC Law
College students have plenty to stress out about; debt should not have to be one of them. Over the past decade, America has seen a sharp rise in student credit card spending. Recent statistics indicate that the average college graduate has over $4,000 in credit card debt on his graduation day, not to mention the thousands of dollars in student loans. A federal bill signed into law by President Obama in May will help to reduce the temptations of credit card spending; however, some states don't feel the law is enough. Many states have taken steps to implement state laws for added protection. Most recently, Illinois Governor, Pat Quinn signed a new law that will clamp down on lenders marketing on Illinois college and university campuses.
The new law isn't aimed at keeping credit card companies off Illinois campuses altogether, it only seeks to set fair practices while marketing college students. The new law which goes into effect in January, 2010, will prohibit credit card companies from handing out free teaser gifts such as t-shirts, blankets, and other rewards for filling out card applications. Furthermore, the law also prohibits Illinois colleges from entering into any agreement with a lender without providing financial education to the students. Additionally, the bill prohibits colleges and universities from selling any information of any student under the age of 21. Penalties of up to $1,000 would be handed out to any college, university, or lender for violating the terms of the law.
At the bill's signing, Governor Quinn noted the importance of protecting young students who are vulnerable to the aggressive marketing strategies of predatory lenders. Major credit card companies like MasterCard and Visa opposed the new legislation; however, has not commented on the law. The Illinois Bankers Association supported the new law. A spokesperson for the association, Debbie Jemison, said banks would only be affected by the limits placed on the sale of student information.