Illinois signs bill restricting marketing credit cards to students

08.12.09
By Nicholas Storie

When college students in Illinois show up for school later this month it will be the last time credit card companies will be able to hand out things like t-shirts and posters in the hope of signing them up for a student credit card.

That's because restrictions signed into law today by Illinois Governor Pat Quinn will place a number of restrictions in the way credit card companies target college students starting in January.

The law will require the companies to give out some form of credit card education to freshman and will prohibit schools from selling the names and information of their students to the card companies.

Illinois Treasurer Alexi Giannoulias, who backed the legislation, said more has to be done to make sure young people do not fall victim to the problems associated with credit cards and credit card debt.

"We need to continue to clamp down on an industry that protects big credit card issuers at the expense of responsible consumers, especially our young men and women who, again, are on their own for the first time, most of whom have no disposable income or income at all," he told the Chicago Tribune. "These are common sense, logical provisions that help level the playing field for students and set new and reasonable expectations for lenders."

The law is not just targeting credit card companies, as colleges and universities could face fines if they allow the firms to break the law on their campus, according to the Bloomington Pantagraph.

With a recent report from Sallie Mae finding that the average undergraduate had $3,173 worth of credit card debt in 2008, a number of states are trying to reel in the peddling of student credit cards.

In July, Connecticut Governor Jodi Rell signed similar legislation which also prohibits card companies from marketing to students during orientation and class registration periods.

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New Illinois legislation might help college students avoid credit card debt