Banks Committee

JOINT FAVORABLE REPORT

Bill No.:

HB-6483

Title:

AN ACT CONCERNING CREDIT CARD OFFERS ON COLLEGE CAMPUSES AND FINANCIAL LITERACY FOR HIGH SCHOOL STUDENTS.

Vote Date:

3/10/2009

Vote Action:

Joint Favorable Substitute

PH Date:

2/24/2009

File No.:

SPONSORS OF BILL:

Banks Committee

REASONS FOR BILL:

This bill will protect and educate consumers by providing restrictions on credit card companies and their marketing techniques on college campuses.

RESPONSE FROM ADMINISTRATION/AGENCY:

Richard Blumenthal, Attorney General

This bill will regulate the marketing of credit cards on college campuses. In particular, it will prohibit public universities and colleges from selling student names and addresses to credit card companies and from marketing particular credit cards, affinity cards with college logo, to students. Too many students graduate from college mired in credit card debt and student loan obligations.

NATURE AND SOURCES OF SUPPORT:

David G. Carter, Chancellor, Connecticut State University System

The Connecticut State University System is committed to ensuring that the students attending our universities do not fall victim to the lure of credit card companies. The universities of the system do not permit solicitation of the credit cards on campus. Furthermore, they do not sell student names and addresses to credit card companies, and have taken steps to provide personal financial education to students at freshman orientations or first-year experience programs to further educate students on these issues.

The Young Women's Leadership Program

Students, who lack sizeable or steady income, are using credit cards to cover the costs of food, utilities, and many of the expenses associated with receiving higher education. This means in order for students to graduate from college, many must absorb an increasingly inflated price of debt.

NATURE AND SOURCES OF OPPOSITION:

David Wiese, Esq., Connecticut Bankers Association

A credit card is typically one of the first and best opportunities for a person to establish a credit rating. Credit cards are usually needed to rent cars, reserve rooms, or make Internet purchases. Some credit cards are tied to a savings account and offer lower interest and have a line-of-credit, which allows for establishing a credit history.

Reported by: Ryan Magoon

Date: 03/12/2009