State Treasurer Giannoulias at ISU

Today at 3pm, State Treasurer Alexi Giannoulias spoke at a press conference in regards to new legislation to protect students from the deceptive practices of credit card companies. Making reference to specific practices like free frisbees, t-shirts, and food, Giannoulias is looking to make these companies more accountable for the way in which they approach students. Here are the main points of this legislation:

• Ban credit issuers from offering any gifts when marketing credit cards on campuses;
• Prohibit the selling or transferring of student names and personal information by colleges, universities, their foundations and alumni associations to credit card lenders;
• Call on state colleges, universities and their affiliates to disclose marketing agreements with banks that target students;
• Require colleges and universities to conduct financial literacy education for freshmen if the schools allow marketing or advertising of credit cards to undergrads.

Stating that this is the most comprehensive legislation on its kind in the nation, Giannoulias also stated that it is not bad for students to have credit cards, since they help build credit, but when irresponsibly placed in the hands of students, it can become payday for the banks, and lasting debt and financial problems for students.

ISU College Democrats President Katie Boundy spoke at the event speaking about how her parents taught her responsible behavior when it came to credit cards. Unfortunately for some students, fiscal responsibility is something that is hard. Take me for instance. 2 years ago I had nearly $3,500 in credit card debt. I was laid off from Best Buy and I had numerous school bills to pay. Credit cards were that answer for me at the time. It took me a year of not buying anything other than gas and the essentials to pay off that debt. In the end I spent nearly $4,000 counting interest. They were way too accessible for me and with parents who want me to learn by doing, I nearly failed.

So I tip the proverbial hat to you Treasurer Giannoulias for finally taking a stand against these companies and the easy money us college kids can be to them. Now I want to hear your opinion (or story). You can either post a comment, or we have a new poll to the right.