OLR Bill Analysis
AN ACT CONCERNING THE SOLICITATION OF CREDIT CARDS TO COLLEGE STUDENTS AND THE MANAGEMENT OF STUDENT CREDIT CARD DEBT.
Under current law, public schools must offer consumer education as part of the required program of instruction. This bill requires that they offer consumer and personal finance management education, which it defines as instruction on topics including (1) using credit wisely, (2) banking, (3) expenses, (4) income, and (5) the stock market. The bill eliminates the requirement that the State Board of Education help and encourage local and regional school boards to include personal financial management as part of their programs of instruction.
The bill also requires the Board of Governors of Higher Education (BOG) to adopt policies regulating how credit card issuers can market their credit cards on public college and university campuses.
The bill prohibits any credit card issuer from taking debt collection action, including telephone calls or demand letters, against the parent or legal guardian of a student to whom it has issued a credit card, unless the parent or legal guardian has agreed in writing to be held liable for the student's debts, pursuant to the credit card agreement's terms. This applies to students, up to age 21, enrolled in public or private higher education institutions on a full- or part-time basis. (The bill does not specify a penalty for violators. )
EFFECTIVE DATE: July 1, 2009
ON-CAMPUS CREDIT CARD MARKETING POLICIES
The BOG's policies must require issuers seeking to conduct on-campus marketing activities to (1) register with the school beforehand, (2) conduct on-campus debt education seminars for all incoming students during orientation, and (3) distribute debt education materials along with any marketing materials. They must also prohibit:
1. issuers from soliciting undergraduate students during orientation, class registration periods, or intercollegiate athletic events;
2. the schools, or their alumni associates and foundations, from selling a student's or graduate's identifying information to credit card issuers;
3. the schools' employees from marketing credit cards to students; and
4. the use of gifts and incentives as part of the marketing activities.
COMMITTEE ACTION
Higher Education and Employment Advancement Committee
Joint Favorable Substitute
Yea |
12 |
Nay |
5 |
(03/17/2009) |