September 02, 2010
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News: NY AG Takes Action In Support Of College Students
While a new school year begins, the transition from high school to college can be a stressful and unhealthy. Experts say that the average college student gains approximately 15 pounds the first year of college because of the unhealthy fast food and snacks they inhale on the run. Not only are college students physically gaining weight, but their financial health is also in jeopardy. It is estimated that the average college graduate begins their new freedom with over $4,000 in credit card debt. This debt begins from day one of the student's new educational life as a freshman. Credit card companies have been criticized for targeting college students by taking advantage of their vulnerability with aggressive marketing campaigns. The new Credit CARD Act 2009 has provisions to prohibit this activity in the future; however, there remains some colleges and lenders that have broken the law.
The New York Attorney General, Andrew Cuomo is about to change all of that. Cuomo has launched a statewide investigation into the marketing activities of credit card companies targeting college students with the assistance of the educational institutions. Every college and university in the state of New York has been sent a letter from the Attorney General asking them to submit all records relating to any exclusive contract the institution has with a debit or credit card company. Cuomo wants to know whether any company has received any personal contact information for students without their consent. All contracts relating to exclusive rights by the lender to brand the college or university's insignia will also be thoroughly reviewed by the Attorney General's office to ensure they are within the guidelines of the law.
Cuomo has also asked all colleges and universities to adopt practices that will foster student financial health and avoid getting into credit card debt. In his statement, Cuomo said he wanted to ensure that the schools are doing everything possible to make this happen and that the schools are making sure that marketers are not "engaging in deceptive marketing practices and jeopardizing the futures of their students."