(U-WIRE) LA JOLLA, Calif.'Credit card companies may soon have to deal with new policies that regulate their conduct on campus.
On Sept. 12 ex-officio University of California Regent Gov. Gray Davis signed a bill into law requiring California State University campuses and California community colleges to adopt policies to regulate the marketing practices used on campuses by credit card companies.
The bill does not require the UC system to comply, but it does include language strongly urging it to do so.
The regulatory policies are to include a prohibition on credit card companies offering gifts to students in exchange for filling out credit card applications. The bill, which was introduced by Rep. Paul Koretz, D-Los Angeles, also requires the affected campuses to offer debt education as a regular part of campus orientation for new students.
Koretz's Chief of Staff Scott Svonkin said the main goal of the legislation is to empower and educate college students on the risks of using credit cards.
\[Credit card companies] focus on giveaways and distract students from the real issues. Many college students got credit cards just because they wanted free gifts,"" Svonkin said, citing a Public Interest Resource Groups study.
Davis spokesperson Roger Salazer said that students inexperienced with using credit cards can get into more debt than they realize.
""Because of the lax requirements that come with student credit cards, [students are] often put in a position where they've run up more debt than they can handle,"" he said.
UC-San Diego student government Vice President External Dylan de Kervor said that the A.S. Council supports the regulation of credit card companies on campus, even though the bill does not require UC campuses to do so.
""We don't want credit card companies on campus recruiting our students,"" de Kervor said. ""If the university is allowing credit card companies on campus, it should be providing information'period.""
De Kervor said that the A.S. Council wants to see the implementation of regulatory policies on credit card companies by next year.
Svonkin said that a graduate student who was working in Koretz's office did some research on student credit cards and brought the issue to the attention of Koretz.
UC spokesperson Mary Spletter said that UC President Richard C. Atkinson sent out a letter to each campus, requesting that they review their policies in light of the bill.
