Students should feel a bit more comfortable opting for plastic over cash this week.
Major provisions of the federal Credit Card Accountability, Responsibility and Disclosure Act of 2009 took effect Monday. The CARD act is largely intended to protect credit card users, and it prevents citizens under 21 from getting a credit card without a sufficient income or a guardian as a co-signer. The Act also imposes laws to make credit card companies’ interactions with consumers more transparent. Companies marketing their cards on college campuses are not allowed to offer inducements to students, and universities must disclose the contracts they have with creditors.
Michael Schoenfeld, vice president for public affairs and government relations, said the Act will be beneficial to vulnerable students but will not greatly affect the University as a whole.
“The direct impact of this act on Duke in relation to our programs and services will be minimal,” Schoenfeld said. He added that Duke does not allow companies to market credit cards on campus as part of its policy prohibiting solicitation on campus.
Another provision of the act recommends that universities offer a financial education session during new student orientation. Currently students receiving financial aid are required to attend a financial education session during orientation, but other students have no similar opportunity said Clay Adams, assistant dean of new student and family programs. He added that the Orientation Welcome Week Advisory Committee is reviewing a proposal on a general financial literacy model that would be optional for the entire first-year class.
The session would likely be offered during the concurrent information sessions on Saturday of orientation week for 50 minutes. OWWAC will decide by March whether or not to offer this session starting with the Class of 2014, Adams said.
Though the act will not impact Duke as an institution, it should have an overall positive effect on students, administrators said.
“Anything that encourages or mandates more information about credit cards is a good thing,” Schoenfeld said.
Although the Act will make it more difficult for students to get a credit card and harder to begin to earn credit during their college years, it will ultimately benefit them more than it will disadvantage them, said Jim Blaine, president and chief executive officer of the State Employee’s Credit Union of North Carolina. He added that the hassles would be offset by consumer protection.
“[Students] were graduating college with damaged credit, which can really hurt you when the job search comes,” Blaine said.
Some Duke students who have credit cards have joint accounts with their parents.
“I would not apply for a credit card by myself,” junior Alex Tirado said.
Pia Hoellerbauer, a senior, said she thought age did not matter as much as personality and that some students are more responsible with their money than others.
Most students said they thought the Act was a good idea.
“For a lot of people they do see credit cards as free money,” Tirado said. “That’s how you end up in debt.”
Get The Chronicle straight to your inbox
Signup for our weekly newsletter. Cancel at any time.