UW may limit card solicitation

Kayla Webley
2005-02-22
The Daily

The days of free T-shirts, pizza and sub sandwiches in exchange for a UW student's signature on credit card applications could come to an end, if a pair of bills makes its way successfully through the Washington State Legislature.

If passed, the companion bills -- House Bill 1894 and Senate Bill 5506 -- would require universities to develop credit card marketing policies.

The new policies would limit where and when marketing booths would be allowed on campus and would prohibit materials credit card companies can use to induce a student to fill out an application.

In addition, students would have to be given written or electronic information on credit card debt before they receive any incentives.

Sen. Jeanne Kohl-Welles, D-Seattle, who authored and co-sponsors the Senate bill, said the legislation is an important step toward lowering debt among college students.

"I hear from college students that [debt] makes it very difficult when they graduate from college, get a job and have a huge debt to pay back," said Kohl-Welles. "Some of this appears to be stemming from the proliferation of credit card use, but also the marketing of credit cards to students."

College students may turn to credit cards in time of financial need, added Rep. Marilyn Chase, D-Edmonds, who co-sponsors the House bill.

"Higher education students are really responsible, but it is hard to make ends meet as a student so they think 'I'll just do this,' and they end up over the edge," Chase said.

Kohl-Welles said she is specifically worried because universities allow credit card marketers to promote their cards on campus.

University alumni associations have not supported previous bills she has sponsored that would have kept credit card companies from soliciting on-campus.

"[Alumni associations] get a certain fee from credit card companies to be on campus," Kohl-Welles noted. "The fees they receive, according to the alumni associations, is used for good things such as scholarships for students, which is why they did not want to prohibit the companies from going on campus."

Alumni associations -- including the UW Alumni Association -- support language used in the latest bills because it gives the universities discretion to implement policies, Kohl-Welles said.

The Washington State Lobby, which includes UW student lobbyist Jamie Corning, strongly supports the legislation because it requires marketers to give students necessary information that will help them learn how to manage credit responsibility.

"There is no education provided so students don't learn how to be responsible with credit and can end up thousands of dollars of debt because these companies are deceptive," said Corning. "We can do a better job of preventing credit card companies from exploiting our students."