In an effort to prevent students from
entering into large credit card debt, the UCSB chapter of CalPIRG
tabled at the Arbor yesterday as part of its Truth About Credit
campaign.
According to the U.S. Public Interest Research
Group’s statistics, many college students graduate with high credit
card debt, averaging close to $4,000 per person. In order to combat
this trend, CalPIRG has begun a nationwide campaign to teach
responsible credit card behavior. U.S. PIRG’s subsidiary organization
in California, the student-funded and directed CalPIRG, advocates on
behalf of students in the state legislature.
The group has
promoted the campaign on campuses statewide this week. Its past
campaigns have included a drive to lower the cost of textbooks.
UCSB CalPIRG Campus Organizer Garo Manjikian said the lobby group is working to ease the financial woes of university students.
“We
are all about college affordability and saving students money,”
Manjikian said. “Educating students on the truth about credit will save
students money.”
Manjikian alleged that credit card companies
use gifts and enticing benefits to trap students into signing up for
high-interest cards with high annual fees. CalPIRG maintains that
because students are uninformed as to the terms of the cards, their
debt is higher than average.
CalPIRG further alleges that
common promotions, such as ones in which credit card companies promise
free food to students who sign up, sometimes saddle students with cards
that have unfavorable terms in their contracts.
“A lot of
college students don’t have credit cards yet and they may be thinking
about getting one to build up their credit scores,” Manjikian said. “In
the contract, there will be some things that are unfair and wrong.
There might be something in their policy that says ‘We can change when
your statement is due without letting you know.’”
First-year
global studies major Paige Farrell said she disagrees with the tactics
some credit card companies allegedly use when soliciting the business
of college students.
“The way that credit card companies
present their offers is deceiving and it is an inconvenience to the
credit card holder,” Farrell said. “As a college student, the position
the credit card companies put me in is unfair. CalPIRG’s goal to
eliminate college card marketing is one that I support.”
U.S.
PIRG has stated its intent to encourage a national debate about the
situation. Manjikian said the event was educational for students and
should help them avoid financial difficulties in the future.
“Our purpose was passing out info about how not to fall into trap,” he said.
