Senate passes bill prohibiting
campus credit card merchandising

The New York State Senate has passed a bill (S.510C), sponsored by Senator George D. Maziarz (R-C, North Tonawanda) that would prohibit the direct merchandising of credit cards through public and private colleges in New York state.

"This bill does not forbid college students from having a credit card," said Senator Maziarz, "but it does forbid credit companies from teaming up with colleges and luring students into a false sense of security."

"College students are vulnerable to accumulating large credit card debt," said Senate Majority Leader Joseph L. Bruno. "This bill will no longer allow for college students to be misled into applying for credit cards they may not be able to afford. I commend Senator Maziarz for his leadership on this issue."

Specifically, the bill prohibits the advertising, marketing, and merchandising of credit cards on college campuses except in newspaper and magazines or in a banking institution located on campus. However, colleges may develop an official credit card marketing policy which may include: the registration of on-campus credit card marketers, limiting credit card marketers to specific dates and specific campus locations, prohibiting free gift offers, and informing students about good credit management practices. This "opt-in" approach will allow for limited credit card merchandising on campus if the college approves and regulates it.

"This legislation reinforces the primary mission of institutions of higher learning - to develop minds through academic or vocational experiences," said Senator Maziarz. "Our colleges were created to enlighten students. They were not created to be merchandising agents for private lending firms."

The average undergraduate has $1,843 in credit card debt, according to Nellie Mae, a student loan provider. About 31 percent of college seniors have balances between $3,000 and $7,000, and 9 percent have more than $7,000 in credit card debts.

The bill was sent to the Assembly.