Tag: credit cards

Colleges, Universities and Alumni Associations Were Paid 83 Million Dollars To Push Credit Cards On Students

On By southwerkIn business ethics, Capitalism, Economic measurement, ethics, Government Failure, Philosophy of Business

Do university administrators feel guilty about encouraging their students to sign up for credit cards that Handful of cut-up credit cards.provided kickbacks to their schools?

Of course, these administrators should. Over the year, hundreds of colleges gave student credit card issuers amazing access in return for cold cash. Colleges surrendered such personal information as student emails, addresses and phone numbers so these companies could pelt students with promotions. And schools allowed credit card issuers on their campuses where they lured kids into signing up for student credit cards in return for t-shirts or other freebies.

Of course, they don’t. Guilt is for suckers. Winners take their opportunities as they come. After all, those students are adults (most of them). They make their own decisions, right?

Looks to me like shooting fish in a barrel.

For years, colleges pushed credit cards on to their most vulnerable students, often those without income and certainly those without financial savvy. The colleges made a tidy sum. A few of their students committed suicide and a great number wound up in debt that fifteen or twenty years will be required to pay it off.

Of course, they don’t feel any responsibility. It was just business.

Average student credit card debt – $3173.

Hook ’em and Cook ’em.

And the colleges, universities and alumni associations weren’t protecting their students. They were exploiting them.

Business ethics – You don’t rip off your customers. (Apparently this is hard for some people.)

James Pilant

Credit Card Companies Develop New Tricks To Get Your Money

On By southwerkIn business ethics, Capitalism, ethics, Philosophy of Business1 Comment

In an article from BNET’s Moneywatch, it is reported that there are three changes, credit card companies are using to make more money. These companies are losing a lot of money because of the new regulations. It definitely killed some of the content in their bag of tricks. But they are resourceful.

According to BNET –

The new Credit CARD Act, passed last year, handed credit card companies a long list of new consumer-friendly regulations. But it hasn’t taken long for card issuers to find sneaky ways around the new rules, says John Ulzheimer, head of consumer education for Credit.com.

The new rules are going to cost the credit card industry somewhere between $50 billion to $80 billion a year, he says: “That’s enough money that they’re going to have to make it up” in other ways.

First, they have increased minimum fees and interest rates.

Second, the law requires that if your payment falls on a weekend or a holiday while the companies are closed, your payment will not be late if you pay the day after. To evade this, the companies are keeping some of their offices open on those days. Call your company on a holiday and see if they have open offices, if so, to be on time, you must pay before the holiday.

Third, the law requires college students to show evidence of a job or have a parent as cosigner before they can get a card. The companies are turning a blind eye to other students co-signing and are considering student loans as income, evading both requirements.

I’m sure I’ll have more to report about credit card company tactics in the future.