New Credit Card Rules
NEW CREDIT CARD RULES AFFECT INSTITUTIONS
The Credit CARD Act signed by President Barack Obama on May 22, 2009, puts new rules in place to help consumers better understand the cost of borrowing and provides more consumer protections. Several new requirements went into effect on February 22, 2010.
Creditors are prohibited from offering a student at any institution of higher learning any tangible item to induce the student to apply for a credit card if the offer is made on the campus, near the campus, or at an event sponsored by or related to the institution.
Institutions of higher learning are also affected by the act’s new consumer protection rules:
- Institutions must publicly disclose any contract or agreement made with a card issuer or creditor for purposes of marketing a credit card.
- Institutions should require creditors to disclose to the institution where credit cards will be marketed on campus.
- Institutions should limit the number of locations on campus where credit cards may be marketed.
- Institutions should offer credit card and debt education, as well as counseling sessions, as a regular part of new student orientation.