Initiatives have begun across the country to prohibit credit card marketers from offering gifts or promotional incentives on a university or community college campus.

USPIRG and the Student PIRGs support efforts at the statewide level to curb aggressive marketing tactics on the part of the credit card industry.  Tactics such as giving out free food, trinkets or air line tickets to encourage students to apply can obscure the judgment of students and cause them to be less inquisitive about the terms and conditions of the credit card as they sign up.  Read the Maryland legislation and the Arizona legislation.

Ohio Attorney General Marc Dann recently brought a case against Citibank, Potbelly Sandwich Works, and a campus marketing company. The companies were passing out coupons for free sandwiches to students at Ohio State University.  The sandwiches could be picked up off campus at the Potbelly's restaurant.  But the students, upon entering the restaurant to redeem the coupon, had to fill out an application for a credit card to get the sandwich.  This solicitation violated the state's Consumer Sales Practices Act. Read more.

Currently, municipal and state governments are “pre-empted” from taking action to prohibit unscrupulous terms and conditions that the credit industry uses to squeeze more fees from students and all consumers.  At the federal level, there are several bills dealing with terms and conditions.  Visit the consumer pages of U.S. PIRG to find out more about these pieces of legislation. 

For more information about these efforts or about the Truth About Credit campaign, contact Christine Lindstrom.