Americans carry about $800 billion in revolving debt. The average American household that carries debt carries $10,000 in credit card debt. And college students are graduating with too much credit card debt—close to $4,000 on average. The credit card industry vigorously markets to college students as valuable new customers on campus. At home, companies fill our mailboxes with solicitations in an effort to poach business. But the deals they offer take advantage of consumers and pile the debt on top of debt. U.S. PIRG's Truth About Credit Campaign will put a stop to the out-of-control marketing and unfair practices of the credit card industry, with a focus on college campuses.

The credit card industry targets college students as valuable new customers. Students will develop brand loyalty, so vendors compete to get their cards into students' wallets. They plaster the campus with fliers and solicitations, and they rely on trinkets and teasers to convince students to apply, hawking free gifts like t-shirts and food. But they don’t inform students of their abusive practices. Not only do the companies charge extraordinary interest rates - penalty rates from major firms are now 35-40% APR - and impose significant penalty fees, but cardholders have few if any legal rights. Get the facts on the worst current terms and conditions that cardholders face.

Credit card industry lobbying has resulted in federal legislative actions and court decisions that have completely blocked state and local legislative and enforcement attempts to rein in soaring fees, interest rates and unfair credit card company practices. At the same time, the card companies’ massive campaign contributions have lulled Congress into a long period of inactivity. Despite rising numbers of complaints, the federal regulators left on the beat have failed to protect us.

To protect student consumers right now, our Campus Credit Card Trap effort aims to reduce student exposure to the worst practices that trap students into unfair terms and conditions. Campuses can adopt principles for responsible marketing that rein in the worst practices.

To find out more about federal legislation on this issue, visit www.uspirg.org.

"Another area which I believe deserves examination is the massive increase and targeting of credit card solicitations. Many of the solicitations target students, persons currently on the economic edge, senior citizens on fixed incomes, and persons who have recently had their debts discharged in bankruptcy. I have long believed that we have an added responsibility to protect the most vulnerable in our society - and I believe that examining the targeting of these groups is critically important."

U.S. Senator Chris Dodd (CT), Chair, Senate Banking Committee