Creditnet News Story
New Jersey enacts law regulating credit card offers on campuses
Tuesday, November 24, 2009
By Thomas Astery
Companies will have to register with colleges.
A recent report from the Associated Press notes that New Jersey Governor Jon Corzine signed a law that puts a number of restrictions on credit card offers at college campuses.
One of the new rules includes the fact that lenders will no longer be able to buy student information - such as names and addresses - from schools. In order to even make credit card offers on a campus, companies will now have to register with the school and provide financial education courses for students.
Furthermore, the companies will no longer be allowed to give away free gifts to get students to sign up for credit card offers.
"And if a student incurs significant credit card debt, the card's issuer cannot initiate debt collection against their parents unless they agreed in writing to be liable for the debt," the AP report stated.
The legislation signed by Corzine is similar to rules enacted recently in other states. For example, Connecticut also has laws that limit credit card offers on campuses. Card companies cannot market their accounts on campus during registration or orientation periods. They are also limited from giving away gifts during sporting events.
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