The CARD Act prohibits charge card companies from directly marketing to certain groups, including marketing on college campuses. However, that has hardly slowed students from getting charge cards. There are new ways of marketing to them that card corporations are figuring out.
No stop to the credit cards
All unethical practices done by credit card corporations were intended to be stopped by the Credit card Accountability, Responsibility and Disclosure Act. Charge card corporations have found ways to get back onto campus. The Wall Street Journal states that this is despite the truth that the CARD Act demands corporations not to market to college students. Card corporations can still offer things for instance $50 bonus checks for signing up for a card although students cannot have free promotional gifts. Students are still being marketed to on Facebook. By joining the Chase Facebook group, “karma” reward points are also offered.
Following the law
Most charge cards are issued by banks, not charge card or finance businesses themselves. For signing up for a checking or savings account, banks can give out promotional tings. That is a canard some say. A University of Houston Law Center discovered in a survey of college students that 73 percent of credit card marketing wasn’t on campus at all which is why financial service corporations are on the same level. Students are willing to skip the rules to get credit cards also. That survey found that 29 percent of students used loan disbursements as proof of income in applying for charge cards.
The price of an education
Yearly the cost of going to a university is going up. This is why students may want a charge card to try and experience something nicer like a real meal. More students go heavily into debt during college. U.S. News and World Reports explained the Sallie Mae foundation showed 92 percent of students charged educational expenses in 2009 while 20 percent of seniors carried at least $7,000 in charge card debt. Time states that there have been significant amounts of debt. The college debt for the class of 2011 is the highest ever. The average debt somebody in the class of 2011 graduated with was very high. It was at $22,900. That’s an increase of 8 percent from 2010 and a 47 percent increase from 2001.
Articles cited
Wall Street Journal
online.wsj.com/article/SB10001424052748704322804576303652621312770.html?mod=WSJ_PersonalFinance_FamilyFinance#articleTabs%3Darticle
Time
newsfeed.time.com/2011/05/11/congratulations-class-of-2011-youre-the-most-indebted-graduates-ever/
U.S. News
usnews.com/education/blogs/student-loan-ranger/2011/05/11/student-credit-card-use-could-cause-problems-later
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