New York attorney general to investigate deceptive credit card marketing aimed at college students
Office of the New York State Attorney General
September 3, 2010
Attorney General Andrew M. Cuomo today announced a statewide investigation into deceptive credit card marketing practices that target college students through their colleges. Cuomo has sent letters to every college and university in New York requesting that the schools submit any exclusive contracts they currently have with credit and debit card companies so that his office can examine them for problematic marketing practices. The letters also call on the schools to adopt policies that will help students avoid getting saddled with credit card debt before their graduation.
The Attorney General’s investigation into the deceptive marketing of credit cards builds on Cuomo’s prior industry-wide examination of conflicts of interest in the student lending industry, which led to major nationwide reforms. Like student loans, credit cards are a major cause of students’ increasing debt burdens. Banks and credit card companies target students in part because they are less financially savvy and more likely to incur fees and penalties that result in substantial profits for credit card companies.
“Today’s students are facing a growing mountain of debt that can burden them long after graduation,” said Attorney General Cuomo. “As a new school year begins, we want to make sure that colleges and universities are doing all that they can to help students avoid financial dangers. Especially in this difficult economy, schools must ensure that credit card companies are not engaging in deceptive marketing practices and jeopardizing the futures of their students.”