Signed into law last August, Illinois State Treasurer Alexi Giannoulias released a statement citing the increase in the average debt and a large amount of students paying late fees as the reason why the action was taken.
The law also includes the Credit Card Marketing Act, which bans credit cards companies from entering college campuses and offering gifts as an incentive to sign up. However, this last action will have little effect on SIUE, since they already had a school ban on credit card companies, according to Assistant Vice Chancellor of Student Affairs Lora Miles.
Miles said the school has had the ban for at least ten years after the school did some research into how credit card companies ran their business.
"We looked at that and said we didn't need it," Miles said. "The research showed they hit the student population the most."
According to a 2008 survey referenced in the press release, college seniors who had at least one credit card had an average debt of $4,138, up from $2,864 in 2004. It also found 82 percent of students failed to pay off their credit card debt before incurring late fees.
Miles said university officials didn't need to promote credit cards, considering the main incentive involved a T-shirt or other gifts. Miles said credit cards can be a good thing if used right, but the proper education to use them is needed.
The law also prevents credit card companies from exploiting loopholes such as distributing flyers on campus where free merchandise or food could be redeemed off campus as well as prohibiting universities from selling students' information to credit card companies.
Junior French major Kellen Blanchard related raising the credit card restrictions to the drinking age limit, where a person is an adult yet isn't treated like one. Blanchard does not own a credit card and sees no reason why he should have to jump through hoops to get one.
"I have an apartment, bills I pay. I've proved my responsibility. There's no reason I shouldn't have a credit card," Blanchard said. "Just buying little things like gas can help build credit, so there's no reason why you should limit me in these three years."
Center Manager for the campus branch of The Bank of Edwardsville Becky Yarbrough said the law does not affect the bank too much. Yarbrough said they have followed SIUE's policy and do not promote credit cards the way some other banks do.
"It doesn't really affect us because we don't market credit cards to our customers outside of the bank," Yarbrough said. "We do have applications inside the office, but it's mostly used for those who show interest in a credit card."
Yarbrough said many more use debit cards in comparison; she estimated as much as 98 percent of their customers use them. The Bank of Edwardsville does offer credit cards, most of which have limits of between $300 and $500.
"We've always wanted to give credit cards to people who qualify for them and need them," Yarbrough said.
No comments:
Post a Comment