Gregoire OKs bill to curb student credit card debt
Kayla Webley
2005-04-19
The Daily
Students itching for some extra cash may be less tempted to reach for credit card applications, thanks to a bill signed yesterday by Gov. Christine Gregoire.
Senate Bill 5506 mandates all state institutions of higher education to establish policies regarding the marketing of credit cards to students.
“As the mother of two university students and a long-time supporter of consumer protection, the governor is keenly aware of the dangers credit card marketing can pose for young consumers who are just learning to make their own decisions about money and credit,” said Althea Cawley-Murphree, Gregoire’s spokesperson.
Gregoire supported the measure to help ensure college students will be less likely to fall into debt.
“[She] signed this bill in order to give greater protection for young consumers and help make sure they understand what they are getting themselves into,” said Cawley-Murphree.
The UW’s existing facility-use policies already bar credit card companies from soliciting to students on campus, said Norm Arkans, the UW’s executive director of media relations and communications.
But now all state university policies must include stipulations on how to register credit card marketers and limitations on the times and location they can market. The policies must also require marketers to distribute information on good credit management practices. Credit card marketers will be unable to distribute material inducements to complete an application unless the student has been provided credit card debt education materials.
The bill is a substitution for the original bill that had harsher restrictions against credit card marketers, who in some instances pay money to universities to reserve table space, said Sen. Jeanne Kohl-Welles, D-Seattle, the bill’s sponsor.
“There is an increase in debt with students across the country as well as here,” said Kohl-Welles. “Part of that is because of tuition increases, and part is because of ease in getting credit cards. Debt can build up.”
“It’s a step in the right direction, but it doesn’t do everything we wanted,” said UW student lobbyist Jamie Corning. “We would have liked to see tougher restrictions on credit card marketers.”
Corning favored the bill’s provisions for student input on the topic.
“[Universities] are going to have to put together formal committees to formulate policy including student in the process,” said Corning, adding that previously universities were able to develop policies without student input. “Requiring the campuses to develop policies and have students’ input is an improvement.”
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