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Published: April 2008

Campus credit card trap report shows abuses

USPIRG has released a report detailing the unfair practices of credit card companies on college campuses entitled "Campus Credit Card Trap."

Click here to view a copy of the report

USPIRG found that students are using credit cards in significant numbers and that a significant number are paying the price through late fees, high balances and delinquencies. The findings also show that these cards are aggressively marketing to students and that students overwhelmingly support limits on campus marketing.

According to USPIRG Consumer Program Director Ed Mierzwinski, the survey findings come as state attorneys general and Congress are also investigating the enticements that the credit card companies rely on to trap college students into applying for credit cards that have bad terms and conditions.

Key findings in “Campus Credit Card Trap” include:

76% of students reported stopping at tables to consider offers or apply for credit cards.

66% of the students surveyed have at least one credit card already. 34% of those who do said they carried a balance from month-to-month.

80% of students supported one or more fair marketing principles. and 74% believe that only cards with fair terms and conditions should be marketed on campus.

Of all respondents, whether they currently had a card or not, one in four (25%) reported pying at least one late fee; 15% reported paying at least one over-the-limit fee and 6% reported that a card had been cancelled for non-payment.

The study, which sampled over 1500 students at 40 schools and universities in 14 states, analyzes student attitudes about, and uses of, credit cards. It is a part of USPIRG's ongoing truthaboutcredit.org campaign to rein in unfair campus credit card marketing.

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Consumer Protection   ♦   Credit Cards   ♦