Hutchinson looks to educate youth about financial responsibility

Springfield, IL - Legislation sponsored by State Senator Toi Hutchinson (D-Olympia Fields) creating the Credit Card Marketing Act of 2009 was signed into law by Governor Pat Quinn yesterday. House Bill 2352 requires that education institutions make information about the learning programs readily available to students and to release information regarding the marketing agreements. Releasing information on students under 21 to businesses or financial institutions is also prohibited by the new law. The bill is an initiative of State Treasurer Alexi Giannoulias. 

"Luring youth into irresponsible financial choices is dishonest and can become a scary situation down the road if not properly explained," said Hutchinson. "This legislation holds credit card companies responsible for their predatory tactics, like free t-shirts and other gifts, by prohibiting those practices on college campuses."

"I commend Senator Hutchinson for her leadership in supporting this legislation that cracks down on credit card marketing schemes," Illinois Treasurer Alexi Giannoulias said. "Too often, credit card offers are not what they seem. A free gift or lunch today can cost a student hundreds of dollars in interest years later. These marketing schemes can result in even more debt before students graduate and enter the 'real world'."

Institutions are also prohibited from allowing free gifts to be offered to students that complete credit card applications. Currently colleges and universities that have banned credit card marketing on their campuses are still seeing students being enticed with gifts and coupons at locations surrounding the campus.

The legislation also requires any private or public higher education facility in Illinois that enters into an agreement with credit card companies to market their product on campus must also provide a financial education program.

Starting in February 2010, no one under the age of 21 will be able to apply for a credit card without a parent or guardian’s signature according to the federal Credit Card Bill of Rights, which will help reduce credit card predatory practices.

"Neither the state or federal laws will ever be able to ban marketing to young people," said Hutchinson. "It is our hope that this legislation will promote fair and responsible credit card marketing and credit card use."