Illinois Clamps Down on Campus Credit Cards

Students that attend any one of the dozens of public and private colleges and universities in the state of Illinois are going to find it a bit more difficult to apply for a credit card now that a new law designed at curbing the marketing of credit cards to students has been passed.

Each and every year banks and financial institutions that issue credit cards swarm onto college campuses encouraging students to fill out applications for their cards. Credit card solicitations is nearly a rite of passage at colleges and universities across America as the credit card issuers compete for new customers.

But things will be a little bit different now in the state of Illinois, and I suspect other states will soon be following suit. Illinois Gov. Pat Quinn put his signature on new legislation that will place sharp restrictions on the way credit card companies can market on college campuses in Illinois.

The new law, which will take effect on January 1, 2010 prohibits both public and private colleges from selling student names and contact information to the credit card companies. The selling of student contact information has long been a profitable venture for both the schools and credit card companies.

That means that students will no longer be bombarded with solicitations in their mailboxes and will no longer be receiving e-mails for accepting credit card offers. Traditionally a student can count on receiving a whole slew of credit card offers, especially when they first arrive on campus.

Another long-standing marketing tactic used by the credit card companies will also be banned. Offering incentives such as T-shirts, coffee mugs, frisbees and free food for filling out credit card applications has been a tried and true formula for success. A little too effective for the likes of Gov. Quinn apparently because it will no longer be permitted on any college campuses in the state either.

The credit card companies that do market on campus will also be required to offer some form of financial responsibility education to any freshman that apply for a credit card. In addition, any organizations such as alumni groups that are affiliated with the colleges must disclose any contracts that they have with credit card companies.

The whole point of these new laws are to basically protect the students from themselves. All too many times young adults go away to college and find the credit card offers to be quite alluring and before they know it, find themselves in a pile of debt. And that is exactly what Gov. Quinn and Illinois lawmakers are attempting to avoid.