Fresh off his first national appearance in Denver, Alexi Giannoulias is back on the grind. Today, the state treasurer will unveil a new bill that would restrict credit card companies from providing gifts to college students who fill out a credit card application:
"Basically we want to limit the ability of credit card companies who prey on college students," Giannoulias said. "Unfortunately this can lead to serious long-term debt for students and their families."
The credit card industry hoodwinks consumers of all ages and income levels, but its aggressive efforts to sign up overburdened and financially naive students is arguably its most insidious marketing strategy. With college tuition and living expenses skyrocketing, marketers convince students of the flexibility credit cards allow, then offer them accounts with high interest rates and never-ending fees. It's no surprise that two-thirds of college students have at least one card and the average student will graduate with more than $2,600 in credit card debt, according to a recent U.S. Public Interest Research Groups survey.
The bill won't curtail exclusive agreements in which card companies and banks pay millions of dollars to schools or alumni associations for preferential treatment with their card-marketing efforts, but it's a step in the right direction.
Image used under a Creative Commons license by Flickr user pladys.
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