Credit card companies have stopped coming to campus in response to a state law restricting the way they target students.
The law went into effect last year, prohibiting credit companies from collecting applications or personal information at California’s colleges.
“The bill does not ban these companies from coming on campus,” said Sandra DeBourelando, who works for assemblyman Paul Koretz. “It helps rein in the ways credit is marketed on campuses.”
Companies can give credit applications to students to send in, but must prevent students from feeling pressured or being coerced. Offering “freebies” is no longer allowed.
“Credit card companies have stopped asking to come to campus ever since the new law was put into effect,” said Ann Fryslie, student activities director.
The college allows banks to come on campus to open new accounts.
The legislation is in effect on all Cal State and community college campuses, but does not yet cover the University of California.
“By November 15, all UCs are expected to submit a written proposal describing their regulation plans,” said Merriah Fairchild, a California Public Interest Research Group member.
Cal PIRG, a sponsor of AB 521, is working closely with California schools helping them monitor how credit card companies target students. This research group has conducted several extensive studies of student-credit trends to justify the need for the bill, said DeBourelando.
DeBourelando said the bill also requires college orientations to include a financial literacy course. “A financial literacy course will provide students with the information they didn’t have to make a proper decision regarding credit.”
Fryslie said when credit card companies did come to campus, City College required them to give students credit counseling as a part of targeting students.
“No one teaches students about credit responsibility anymore,” she said.
“College students are being taken advantage of,” DeBourelando said. “That has been the motive behind this bill, to protect students from unnecessary credit debt.”