Marketing of Credit Cards to Students

New York State law prohibits the advertising, marketing, or merchandising of credit cards to students on college campuses except pursuant to an official credit card marketing policy. The statute was enacted to address an alarming trend in which college students who lack financial management skills are solicited for credit cards on campus and incur significant credit card debt resulting in negative credit histories and sometimes bankruptcy. This policy fulfills The City University of New York’s statutory obligation to adopt an official credit card marketing policy while maintaining the ability of individual colleges to allow credit card marketing on campus under appropriate guidelines. (BTM,2005,06-27,008,_A)

Colleges shall not sell or otherwise make available student lists to credit card companies. The term “credit card companies” as used in this policy includes all financial institutions and any other issuers of credit cards. (BTM,2005,06-27,008,_A)

A college may choose to ban the advertising, marketing or merchandising of credit cards to students on its campus. This policy does not apply to student newspapers. (BTM,2005,06-27,008,_A)

No credit card company may advertise, market, or merchandise credit cards to students, unless they meet substantive criteria established by the college and pursuant to time, place and manner restrictions as are established by the college. Such criteria may include maximum interest rates, credit lines, penalties and fees. (BTM,2005,06-27,008,_A)

Colleges that wish to allow the credit card companies access to their campuses to market credit cards—tabling—may only do so under the following conditions (BTM,2005,06-27,008,_A):

a) Credit card companies shall be prohibited from using marketing tactics such as giving away gifts or other items of value to students who apply for or are granted credit cards. (BTM,2005,06-27,008,_A)

b) Credit card companies shall be prohibited from taking completed applications from students on the campus. (BTM,2005,06-27,008,_A)

Credit card and debt education should be made a regular part of campus programming, including at new student orientation programs. (BTM,2005,06-27,008,_A)

Bookstores shall be prohibited by auxiliary enterprise boards from including credit card applications and brochures with bookstore purchases. (BTM,2005,06-27,008,_A)

REFERENCE: CUNY Manual of General Policy, Article VII, Policy 7.08. See: Article VII - CUNY Policy