From the Illinois Senate
State Senator Toi Hutchinson

FOR IMMEDIATE RELEASE
August 12, 2009
217.782.0085

FOR MORE INFORMATION
Jillian Dykhoff

Credit Card Marketing Limitation Bill Signed By Governor
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.”