July 8, 2009
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News: CT Governor Signs College Campus CC Law
The Governor of Connecticut has taken action to protect college students from the predatory activities of credit card companies. Governor M. Jodi Rell announced on July 7th that she signed the law that will prohibit lenders from marketing credit cards to college students. Governor Rell is an advocate for students who already carry the heavy burden of tuition and are vulnerable to falling prey to the aggressive marketing strategies of lenders on campuses across the state. The Governor stated that the new law "will set strict parameters for credit card companies on when, where, and how they can market to students." The law defines a student as an individual under the age of 21 and enrolled either part-time or full-time in a public college. Furthermore, the new law will limit lenders from taking and debt collection action against the parents who have not agreed in writing that they will take responsibility for their students. Such actions include telephone calls or demand letters.
The new law, House Bill 6483, An Act Concerning Credit Card Offers on College Campuses, calls for the Boards of Governors of Higher Education "adopt a policy" no later than January 1, 2010, with a set of procedures that regulate lenders' activities on campus. The new law also limits the time and place lenders can market their products; requires lenders include financial educational materials with marketing information; bans lenders from offering gifts and incentives while marketing their products; bans public college employees from participating in credit card marketing activities to students; and bans higher education institutions from selling students names and addresses to any lender.
The new bill was introduced in February and co-sponsored by over 30 Representatives. Senator Bob Duff (D-Norwalk), co-chair of the General Assembly's Banks Committee, lead the march to the bill's passing which was unanimously passed by both the Connecticut House and Senate. Connecticut is not alone in their plight to protect young college students, several other states are also taking measures to extend protection beyond the recently signed credit card rights act by President Obama.