Every day we get another report of abusive and predatory practices in the consumer lending industry, and today is no different. Ohio's Attorney General has sued Citibank for its advertisements on the Ohio State University Campus, which included offers for FREE FOOD! -- if you'll just fill out this credit card application.
The lawsuit alleges that Citibank used bait-and-switch advertising and did not provide students with adequate information about everything they were getting into. BusinessWeek takes a look at the practice of "affinity cards" -- another form of credit card company malpractice with the help of friendly universities. In exchange for large payments, credit card issuers can gain exclusive access to a university's students at events like football games. In some cases, the schools even provide the companies with students' email addresses so they can be bombarded with offers.
These credit card companies have no business being on college campuses, and the universities are doing a disservice to their students by allowing them to be market to this way. if a student needs a credit card, he can go get one ... off campus. There can be no doubt that aggressive marketing on college campuses has lured many students into a cycle of financial woes.
If you have a story about credit cards on campus, please visit Student Public Interest Research Groups.
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Reader Comments (Page 1 of 1)
10-02-2007 @ 9:17PM
Lin said...
Credit card companies are fleecing poor and middle class Americans while our government looks the other way. Interest rates have sky rocketed to over 30% if you are one day late. Plus your FICO score is rigged. You have no consumer power if you pay your debt off and close it because of predatory obscene credit card companies.
TIME TO FIGHT BACK
10-03-2007 @ 12:11AM
monty said...
cc compaies suck
10-03-2007 @ 12:35AM
Schlittenburg07 said...
When President Reagan de-regulated the Banking Industry in the '80's, I'm sure he didn't anticipate they would "run amok". It is criminal to charge the rates most do on credit cards, particularly when the customer has committed no real defaults. The Banking Industry claims that Americans have too much debt. That being the case, the Government needs to cap Credit Card interest rates at a reasonable level, so that people can reduce their debt faster and easier.
10-03-2007 @ 4:34AM
bob said...
I love it. No rotc on campus, but hooray for cc cos. Soak the little libs, they deserve it. Whats your liberal college done for you lately? Lmao
10-04-2007 @ 12:34PM
Steve said...
Zac, you are absolutely right. Credit card companies are being too aggressive by marketing to students on campus. It just goes to show you how competitive the industry is.
Steve
http://www.apexcreditcards.com
12-17-2007 @ 6:55PM
Bob said...
I understand your point about credit card companies being predatory Zac, but college students are also young adults and must learn to make resposible decisions for themselves. I think that sometimes we are becoming a nanny state.
Bob
http://www.bestcreditquote.com