Prohibition on Marketing of Credit Cards to Students
State law prohibits the advertising, marketing, or merchandising of credit cards to students on college campuses except pursuant to an official credit card marketing policy. The statute was passed to address an alarming trend in which college students who lack financial management skills are solicited for credit cards on campus and incur significant credit card debt resulting in negative credit histories and sometimes bankruptcy. This policy fulfills Purchase College’s statutory obligation to adopt an official credit card marketing policy while maintaining the ability of individual colleges to allow credit card marketing on campus under appropriate guidelines.
The official college credit card marketing policy includes:
- registration of on-campus credit card marketers
- limiting credit card marketers to specific dates and specific areas of the campus as designated by the college
- prohibiting credit card marketers from offering gifts to a student in exchange for completing a credit card application
- informing students about good credit management practices through programs which may include workshops, seminars, discussion groups and media presentations.
Applicable legislation: NYS Education Law §6437.