• by Tanya Gazdik , October 12, 2007

The U.S. Public Interest Research Group (PIRG) and several other higher education groups have launched a national campaign to combat what they call deceptive marketing practices used by credit card companies on college campuses.

The Boston-based citizen advocacy group is partnering with the American Council on Education, the National Association of College and University Business Officers and the National Association of Student Personnel Administrators. The groups say that credit card companies sponsor promotions and giveaways that trick students into signing up for credit cards, and then charge them unreasonably high fees.

The intent isn't to limit student access to credit, but to eliminate controversial marketing tactics while educating students on the risks associated with buying on credit. The campaign is urging college administrators to take an active role in determining the type of credit card marketing allowed on their campuses, even to the point of discouraging issuers from including certain controversial terms in card agreements.

Schools are also being asked to better educate students about financial issues and credit card debt liability. The groups would also like to see a ban on the use of gifts such as free T-shirts and food, which are used as inducements in campus marketing. They are also calling for a restriction of the appearance of card-marketing posters and fliers on campus, and they want to block the dissemination of student lists and stop campus groups from striking deals with lenders.

Launching what it described as a counter-marketing campaign, U.S. PIRG set up booths at 40 campuses nationwide this week to parody the way cards are marketed to students. Wearing T-shirts and caps promoting the fictional credit card "Feesa," protesters gave out lollipops emblazoned with the message "Don't be a sucker." Students are being asked to sign petitions in support of their respective universities adopting new policies on credit card marketing on campus.

Fifteen states already restrict or ban credit-card marketing to students on campus, says Matt Hamill, director of advocacy for the National Association of College and University Business Officers. Congress also is considering a measure intended to keep students from taking on too much credit.

Ken Clayton, managing director of the card policy council of the American Bankers Association, which represents card-issuers, told the Associated Press that his organization shares the goal of better educating students about credit--but said that overall, students use credit responsibly and pay their balances in full at the same rate as the general public. He also said three-quarters of students get cards through general advertising, not campus promotions. Credit cards "serve a very valuable function, whether it's to buy books, airline tickets home, or pay for emergencies like when your car breaks down," he said.