CT Gov. signs bill regulating credit card marketing to college students

July 8, 2009 -- Connecticut Governor M. Jodi Rell today announced she has signed a bill that regulates credit card marketing on campus to college students and restricts debt collection actions that can be taken by credit card companies against parents.

“Students are already burdened with education loans by the time they leave college. They risk taking on even more financial pressure when they give in to the lure of credit cards made available to them right on campus,” Governor Rell said. “This bill will set strict parameters for credit card companies on when, where and how they can market to students.”

Article continues below...

The new law requires the Boards of Governors of Higher Education to adopt a policy, on or before January 1, 2010, that requires credit card companies to register with colleges and universities before conducting any business on campus. The law also:

· Prohibits credit card companies from marketing during orientation and class registration periods;

· Requires companies to distribute credit care management education materials along with marketing information;

· Prohibits companies from offering gifts and incentives at athletics events as part of their marketing strategy;

· Prohibits colleges and universities from selling student names and addresses to credit card companies.

The law also bans credit card companies from trying collect a student’s debt from his or her parent unless the parent agrees in writing to be liable for the debt.

The legislation is House Bill 6483, An Act Concerning Credit Card Offers on College Campuses.

Source: Connecticut Governor