Rutgers University, New Brunswick, New Jersey—Students
overwhelmingly support limits on campus credit card marketing, according to the
results of a nationwide USPIRG survey of over 1500 students at 40 colleges in
14 states including Rutgers University.
“Campus credit card marketing is simply out-of-control,”
said Tatiana Smith Intern with NJPIRG Student Chapters at Rutgers University.
“At tables on or off campus, or on your phone or in your mail, there’s a credit
card company making a pitch to get into your wallet, even if you cannot afford
to pay the bill.”
The survey findings come as state attorneys general and
Congress are also investigating the enticements that the credit card companies
rely upon to trap college students into applying for credit cards that have bad
terms and conditions, Tatiana said.
“Credit card companies are desperate to expand their already
massive profits and the best two ways to do that are either to gouge existing
customers with tricks and traps or recruit new customers,” added Estee Atzbi
from the Douglass Governing Council. “Colleges are a mother lode for finding
new customers because students live close together, are in need of credit and,
like everyone else, are attracted to free food, free t-shirts, and other free
offers. The catch is sometimes they get a card they don’t need or cannot
afford.”
“As a Campus Dean, I applaud any
activities that encourage students to critically examine the financial
obligations they take on while attending Rutgers.
Extensive credit card debt is easily taken on and not so easily taken care of,”
said Dean Ludescher.
Among the key findings of the “Campus Credit Card Trap,”
were the following:
Three of four students (76%) reported stopping
at tables to consider offers or apply for credit cards. Of students who reported
stopping or applying at on-campus tables for credit cards for free gifts
ranging from t-shirts to blankets to “sandwiches” or “pizza” or even “an iPod
shuffle.”
Four in five (80% of students supported one or
more fair marketing principles. Nearly three-in-four students (74%) asserted
that only cards with fair terms and conditions should be marketed on campus.
Students also overwhelmingly (67%) opposed the sale or sharing of student lists
(which can include home and dorm addresses, email addresses and land line and
cell phone numbers) with credit card companies.
Nearly two in three students (66%) reported that
they had at least one credit card. Of these, 30% reported that their parents
paid the bill. Thirty-six percent (or just over half of the remainder) reported
that they paid the full balance on their primary card each month and just under
half (34%) reported carrying a balance from month-to-month.
Of all respondents, whether they had a card
currently or not, one in four (25%) reported paying at least one late fee; 15%
reported paying at least one over-the-limit fee and 6% reported that a card had
been cancelled for non-payment.
Tatiana said that the release of the survey was part of NJPIRG’s
new truthaboutcredit.org campaign to rein in unfair campus credit card
marketing. In addition to the release of this survey and other future reports,
the group’s activities include:
A FEESA (Sounds like VISA) campus credit card
counter-marketing campaign. “Our representatives dress like credit card vendors
and set up tables, too, but instead of handing out free gifts, we give out
credit education factsheets and “don’t be a sucker”” lollipops,” Tatiana said.
Ongoing efforts to urge college administrations
to adopt the NJPIRG campus credit card marketing platform, which calls for a
ban on free gifts, a ban on selling or sharing student lists, a ban on campus
sponsorship of marketing and increased financial education.
"Even though some schools or states have restricted campus
credit card marketing, it’s clear that more needs to be done,” concluded Tatiana
“Without concerted efforts to keep the marketplace on campus fair, then banks
will keep finding new ways to get bad credit products into students’ wallets.”
