Forum planned to discuss campus credit card solicitations

Eileen English
State Hornet
Published November 8, 1999

You may own the most expensive T-shirt or water bottle on the CSUS campus and not even know it.

If you have accepted a gift from one of the credit card vendors on the quad in exchange for filling out a credit card application, you may be paying for your "free" gift for many months or years to come. The hidden fees and post-introductory interest rates from the credit cards can quickly add up to hundreds of dollars or more.

"Initially they look great," said Louis Camera, Director of Student Activities. "The caveat is that if you miss one payment the interest is bumped up to 19 or 20 percent."

To address credit card solicitation at CSUS, ASI has organized an open forum from 6:30 to 8 p.m. Wednesday in the Redwood Room of the University Union.

"This forum is totally open," said Sean Lumachi of the California State Student Association. "It will be low-key and kick-back so that students can just walk-in and speak up."

Based on the feedback from the forum, a recommendation will made at the Dec. 1 ASI board meeting.

"This is to see where students stand on the issue," said Lumachi. "Then the final recommendation made to the ASI board will be informed and representative of students."

Who is responsible for monitoring credit vendors, and even whether or not they should be allowed on campus, are pressing questions at CSUS and nationally. There are several states that have recently banned credit card vendors from soliciting student consumers on their campuses entirely.

"This is an important issue," said Lumachi. "Credit card companies need to be more responsible when selling their products to our students."

In July Sen. Joseph Dunn (D-Garden Grove) introduced SB 796, a bill which called on all three university systems in California to restrict credit solicitations on campuses. Though the bill died this time, it will be reintroduced in two years, according to Lumachi.

"The answer is not to keep credit cards off campus," said Camera. "Credit cards are an inevitable way of handling finances; using them responsibly is the important thing."

In response to the concerns, ASI is examining the current policies at Sacramento State exploring options that can protect students from deceptive practices by vendors on campus.

One possible restriction would be to disallow credit card solicitors on campus and instead to offer an ASI credit card that would have consistently low interest rates and fees with its revenue going to scholarships. This would be similar to the one offered to CSUS alumni by the Alumni Association.

The problem is that credit card offers are a major fundraising source for many campus groups. A club can receive $50 to $100 for each day that they represent the vendor on campus.

Another arrangement is that the representing group receives a certain amount for each completed credit card application. Banning credit card sales on campus would eliminate a significant financial resource for organizations on campus.

Other less severe restrictions would require that companies disclose all their terms typed in a readable font and to make educational information available.

So far there are few restrictions in place for vendors who target students at CSUS. They must be represented by a campus club and be registered with Student Activities.

Camera regularly checks on the vendors set up in the quad. Recently he asked for identification and a copy of the approved form from a vendor. When the salesperson couldn't produce any, he was asked to leave. Initially he refused until campus police were called.

"They just walk onto campus and set up," said Lumachi. "They come onto campus illegally."

Students might not be aware that they are giving enough personal information for an identity theft. With a name and Social Security number, a deceptive enterprise can log onto the Internet and run up debt with the student's name.

"Buyer beware," said Camera. "Understand what you are doing."

He also advised students to ask for proof that the company is registered on campus. Additionally, a member of the campus organization sponsoring them should accompany the solicitor.

"If they are a legitimate business they'll have a copy of an approved Request to Raise Funds form from student activities," said Camera.