impact of credit card legislation on students
TRANSCRIPT
Peeling Back The Onion:
The Impact of Credit Card Legislation
On Students…And Their Parents
Peter [email protected]
• Stability
• Ability
• Willingness to Pay
And then there was Andrew Cuomo…
Student Credit Card Trends• Usage
• Balances
• Direct School Expenses
• Tuition Payments
• Knowledge of Balance
• Revolving a Balance
• Financial Illiteracy
“We basically
socialized the
bearing of the risk.
That’s why good
customers
sometimes have to
bear the cost of the
risk that others
pose.”
-- Ken Clayton, ABA
Key Provisions• Rate increases
• Existing balances
• Opt-In overlimit fees
• Universal default
• Payment allocation
What constitutes a
written application?
What’s a “tangible
item?” And why does
intangible sound like a
better deal anyway?
Where can we
actually market to
students?
The Law of Unintended Consequences
“If people are being
taken to the
cleaners, it’s
because Congress
sent them there.”
--Wall Street Journal
Sept. 2008:
$4.7 trillion in
open credit lines
October 2009:
$3.4 trillion in
open credit lines
1,000%
$38.5B vs. $20.5B
$8.7B vs. $4B
