Card solicitation limits supported
Some universities sell student information
Steven Nalley
Contributing Writer
Issue date: 4/7/08 Section: News
A recent survey indicates college students would support stronger regulation of credit card companies' marketing practices on campus.
The U.S. Public Interest Research Group surveyed more than 1,500 students from 40 schools in 14 states for its "Campus Credit Card Trap Report."
Four out of five students supported at least one of several given restrictions on campus credit card marketing, such as marketing only fair cards and banning free gifts.
The Ferguson Center's Outside Vendor Policy currently prohibits credit card companies from setting up tables in the building, except for those that have agreements with the University Supply Store, such as the Alabama Credit Union.
In the report, 46 percent of students supported limiting the number of days credit card companies could set up tables each semester.
Robert Brooks, a professor in the finance department in the Culverhouse College of Commerce and Business Administration, said when students buy credit cards and build bad credit, they usually have unrealistic expectations about their future and their opportunities to pay off debt.
"The people most at-risk are people who are either overly optimistic or arrogant about their abilities," Brooks said.
Brooks said the reason students would not want a credit card is akin to the reason they would not want unrestricted access to the Internet.
"We tend to do things we know we shouldn't do. Therefore, I'm not going to put myself in a compromising position," Brooks said about students' situations. "If I don't have a credit card, then I can't impulse buy."
Jessica Bryant, a freshman majoring in political science, said she thinks students are encouraged not to get credit cards, but still want them for various purchases.
"I'm interested in getting credit cards," she said. "I just don't feel it's the right time yet. If there were a credit card that you could have good credit without having to use it, I might actually get it."
The U.S. Public Interest Research Group surveyed more than 1,500 students from 40 schools in 14 states for its "Campus Credit Card Trap Report."
Four out of five students supported at least one of several given restrictions on campus credit card marketing, such as marketing only fair cards and banning free gifts.
The Ferguson Center's Outside Vendor Policy currently prohibits credit card companies from setting up tables in the building, except for those that have agreements with the University Supply Store, such as the Alabama Credit Union.
In the report, 46 percent of students supported limiting the number of days credit card companies could set up tables each semester.
Robert Brooks, a professor in the finance department in the Culverhouse College of Commerce and Business Administration, said when students buy credit cards and build bad credit, they usually have unrealistic expectations about their future and their opportunities to pay off debt.
"The people most at-risk are people who are either overly optimistic or arrogant about their abilities," Brooks said.
Brooks said the reason students would not want a credit card is akin to the reason they would not want unrestricted access to the Internet.
"We tend to do things we know we shouldn't do. Therefore, I'm not going to put myself in a compromising position," Brooks said about students' situations. "If I don't have a credit card, then I can't impulse buy."
Jessica Bryant, a freshman majoring in political science, said she thinks students are encouraged not to get credit cards, but still want them for various purchases.
"I'm interested in getting credit cards," she said. "I just don't feel it's the right time yet. If there were a credit card that you could have good credit without having to use it, I might actually get it."
Be the first to comment on this story