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HR 3606 (CARD Act 21-day rule fix) signed into law by president, as was the homebuyer tax credit extension
Scam warning: Kennedy Space Center FCU members being targeted via phony text messages by ID thieves in Florida. http://ow.ly/zWCE
Financial Stability Improvement Act markup, which began today, will continue after Vets. day, Hse. Fin. Svcs. Chair Barney Frank says.
In Mon NN: 24 SE Wisc. CUs will now have control of $71.5M in loans and lender-owned homes after Central States Mtge went into receivership.
Detroit Edison Credit Union and NuUnion Credit Union announce their intent to merge http://tinyurl.com/y8bslvg
California bans credit card gifts to students
SACRAMENTO, Calif. (9/14/07)--California lawmakers have passed a bill that prohibits credit card companies from enticing students with free t-shirts or pizza in exchange for signing up for credit cards at California state and community colleges.
The bill codifies an existing 2001 law that directed schools to create policies regarding credit card solicitations on campus, according to Keri Bailey, state legislative lobbyist at the California Credit Union League (CCUL).
"It's just putting in statute what the universities were already doing," said Keri Bailey. "It pretty much keeps the status quo... it puts some teeth into it."
The league did not take an official position on the legislation.
The bill was passed last week and is headed to Gov. Arnold Schwarzenegger's desk for approval. In addition to preventing companies from giving gifts to students who fill out credit card applications, it also requires California's state and community colleges to disclose their relationships with the credit card companies.
The state legislature cannot direct University of California System schools to follow the law, although it encourages them to do so.
Other states have introduced and passed similar legislation this year regarding students and credit cards. In July, Oklahoma Gov. Brad Henry signed into law Senate Bill 496 law, which prevents Oklahoma college students' names and addresses from being sold to credit card companies. And as of Sept. 1, credit card companies in Texas are now restricted as to when and where they can market to students on campus.
Congress also revisited a bill that would restrict student credit card limits to 20% of their total incomes. The bill, dubbed the Student Credit Card Protection Act, was originally introduced in 1999 by Rep. John Duncan (R-Tenn.) and Rep. Louise Slaughter (D-N.Y.). A companion bill, by Sen. Richard Durbin (D-Ill.) and Sen. Herb Kohl (D-Wis.) awaits action in the Senate (BusinessWeek Sept. 7).
Credit card companies are known for targeting college students, and on Thursday, CBS News reported that many students fall into the "credit card trap" upon arriving to school because they are often inundated with card offers. The article cited a study by Nellie Mae Corp., which indicated that 42% of college freshmen had credit cards, and that 46% of these had obtained them during their first year of school (Sept. 12).
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