The latest from NY AG Cuomo: A probe into credit-card firms that market to college students...

The latest from NY AG Cuomo: A probe into credit-card firms that market to college students through their schools. It's part of a broader look at conflicts of interest in the student-lending industry, and Cuomo has sent information requests to every college and university in the state.

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Comments (13)
  • philais
    , contributor
    Comments (193) | Send Message
    Funny...Since my kid graduated with his nursing degree this summer, every bank in the world has sent him pre-approval. How do they know?
    4 Sep 2010, 06:53 PM Reply Like
  • phxcrane
    , contributor
    Comments (762) | Send Message
    Whats wrong with sending him offers there not holding a gun to his head.
    4 Sep 2010, 09:46 PM Reply Like
  • thopaine
    , contributor
    Comments (474) | Send Message
    Sending offers, and targeting, are two different animals.
    14 Sep 2010, 09:26 AM Reply Like
  • Stevious
    , contributor
    Comments (27) | Send Message
    Sending offers and targeting, based upon parent profiling, and based upon a knowledgeable pattern of intending a high percentage of default such that $5,000 worth of credit quickly balloons to $20,000 with the creditors statistically knowing that "the system" will guarantee that eventually the juvenile (Piaget once said that a child does not become an adult until they get a job) will become an adult, and like their profiled parents--will want a car and a house and then it is-------Gotcha! Just as planned. I call that "baiting"


    It's not illegal--but it is unethical.
    10 Oct 2010, 02:59 PM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
    I am reminded of the "Capital One's" of the world and their shady practices in the past and now their resurgence. Bury the losses and fleece the unknowing.
    4 Sep 2010, 09:59 PM Reply Like
  • Wyatt Junker
    , contributor
    Comments (4498) | Send Message
    There's no such thing as the unknowing.


    Only the dipshits who care not to know and the dipshits too enamored with being a dipshit that vote for the Cuomos of the world, the quintessential dipshit who panders to dipshits, pitiful pitiful dipshits who blame others and cry into their mountains of pity, like dipshits tend to do.


    Blaming a credit card is like blaming fire for being hot. Or a lifetime smoker laswsuit. IOW, a dipshit move.


    Credit cards are credit cards. Toilet paper is toilet paper. If you don't use toilet paper correctly, you will get red ass. If you don't use a credit card correctly, you will get punished for it.


    Please don't blame inanimate objects. Next thing you know, people will start getting attacked in their own homes by their furniture.


    And then we will have attorney generals looking into suing Ethan Allen.


    None of us want that, do we?


    The nation of the helpless, saved by the macho politician badass? Uh, no thanks, but thanks for the thought I guess. I just don't have time for being demeaned.
    5 Sep 2010, 01:29 AM Reply Like
  • thopaine
    , contributor
    Comments (474) | Send Message
    Someone should look into the u. of calif. in this regard.My visit to uc santa barbara with son years ago found credit card hawkers set up in the best location in the quad,offering free t-shirts to new signers. Need I add these students had ZERO income other than support checks from parents.
    There is money in credit ! How much went back to the employees of the university?
    5 Sep 2010, 02:33 AM Reply Like
  • Stevious
    , contributor
    Comments (27) | Send Message
    It's simple theft. A classic con game.


    Piaget pointed out that children do not become adults until after their first job, these days that could be the age of 26. A child believes firmly that her mind controls the universe--therefore, since her mind controls everything, debt could never be a problem.


    It has been proven in many studies that credit card purchases are not acknowledged the same way as paying cash. The mind doesn't get it.


    I warned Jenna, the daughter of my once SOs that she would get a number of unsolicited offers and explained that the cc company had already profiled mom and dad. Since mom and dad did well, she too would probably do well (eventually). I explained that the cc company expected that she would max the cards and stop paying on them thinking it (as Piaget predicted) would simply go away.


    Then about a year or two later, or just after her leaving (she quit college) the cc cards (there were three) would file suit--but not where mom lives, rather, back in Florida where the college was.


    She thought it was quite the joke being sued thousands of miles away and saw absolutely no problem.


    The $9k debt after two years of overdraft (each @$39, plus late fees (each @$39) plus interest jacked up to 39%, plus debt plus prior interest due, plus collection fees (especially as she was not present at the trial to contest excessive fees) turned the $9k debt into about $18,000, and with a judgment, that amount was collecting statutory interest fees for the next 25 years.


    The cc company knew, based on prior filing that at some point she would grow up and like mom and dad, knuckle down and become something and she did. A part time job turned into a managerial position at the Gap and thrilled with the new salary, she went to buy a car.


    Uh oh -- sorry, you have a problem with your credit that must be fixed. And so now, five years later she is paying a significant amount of her income and is doing well at paying the debt, in about three years she'll be able to buy her car.


    Loan $9k and the total return on the loan will eventually pay back triple--that's the cc's game in a nutshell. Where else can you get a 300% ROI? It's fraud by intent, not illegal, but immoral. But then when did any concept of morals relate to the investment banking industry.


    The amount of credit line given to students should not be allowed to exceed 1/3 of the student's annual income.


    One thing that is nice is in America everything is upfront, probably why HSCB bank left our industry. A HSCB cc in RP (Republic of Philippines) terms would outrage you. There are millions in RP living and dying (very slowly of starvation/malnutrition) because the mores of the culture is such that the average person there will starve before reneging on a debt--and they cannot see the unfairness of the terms, and cannot fathom that they are simple victims. There people with zero assets, living in abject poverty, will pay a large portion of their meager income to HSCB even if it means they cannot eat enough to remain healthy. We live in an increasingly immoral and corrupt world.
    5 Sep 2010, 09:50 AM Reply Like
  • ebworthen
    , contributor
    Comments (2799) | Send Message
    Exactly. They peddle the cards to the kids knowing they will likely be irresponsible with them.


    If the kid doesn't pay it, Mom and Dad (or Grandma and Grandpa) will. I wouldn't pay for my kid, but a lot of Parents do.


    If the credit card companies weren't intentionally predatory they would offer cards with a $500 credit limit regardless. Enough for pizza and beer or some textbooks but not so much that it will cripple the student later.


    What's not in your wallet?
    5 Sep 2010, 04:32 PM Reply Like
  • phxcrane
    , contributor
    Comments (762) | Send Message
    I still dont get it why is the ineptitude on young peoples part is the problem of the credit card businesses. I guess that's why the Democrats control the country. Heaven forbid they be responsible. How do you suppose they should learn about being responsible.
    6 Sep 2010, 09:05 PM Reply Like
  • thopaine
    , contributor
    Comments (474) | Send Message
    Please move this comment to the opinion pages;inappropriate for this forum.
    14 Sep 2010, 09:22 AM Reply Like
  • kmagee
    , contributor
    Comments (56) | Send Message
    Perhaps if financial education began in grade school (and continued from there, like math/language and history, as not only the kids but many of the parents could also use this training), we could dispense with reaping the "rewards" of the kids' ignorance regarding predatory bank lending practices and turn the tables on the banks doing that once and for all. We each have the power to "just say no!" If we teach this to the kids with all the reasons why they might want to choose (by themselves or with the parents suggestions) to wait for credit, or to accept controls or limits on their access to the amount of credit they can safely handle based on their own individual means--(job + other resources available to live on while in school)--then they could choose to empower themselves by refusing the illusionary "free offers and 'low introductory rates" terms to the point where they would become impervious to the advances of the financially greedy and irresponsible predatory banks. They could then choose by themselves to only accept a card offer with limits geared to their ability to use and pay it back, and would learn to use it wisely and build up a good credit relationship with their bank. That would give them greater freedom upon graduation into the real world where they will need to have already mastered credit and finance in order to effectively build their lives. For those banks that choose to act responsibly, they should dream up types of student/parent accounts with such limits, which would be taking a proactive stand in helping to train these kids. (Think of all the positive publicity plus other blessings that could come back to these banks if they would proactively participate in the education of their future clients in using credit wisely)! If the parents have the means, they can still choose themselves to be responsible for any or all of their kid's debts, so they should also be able to co-sign and choose to raise the bank imposed spending limits on the kid's accounts to those limits that reflecting the parents' financial health. It is still up to the bank as to how much of a spending limit should be on that account, so if they do their homework they can keep their losses limited in case of defaults of both parties.
    I recall when I was in college, American Express kept deluging me and my fellow students with pre-approved offers for Amex cards. I always threw these away on purpose because I had no job and only enough income to get by and knew I could not pay off a monthly credit card bill. I could not see the logic of their offers at all at the time.
    After graduation and upon getting my first full time job, another one of these flyers came, so I sent it in to apply and was told I was "denied due to insufficiently high income level to qualify." (What kind of twisted logic was this, I thought).
    The very next flyer offer that came, I wrote a note with it and returned it empty to them, telling them that they were to take me off their mailing list forever, for I would never ever apply or accept an Amex card for the rest of my life, for the above reasons which I clearly stated. And I never have, and never will.
    If everyone did that in response to corrupt usury and heinous credit card practices, they could not continue to perpetuate their nefarious practices--for the lack of an ignorant population willing to put up with it would wipe out most their ill-gotten gains!
    13 Sep 2010, 08:21 PM Reply Like
  • thopaine
    , contributor
    Comments (474) | Send Message
    Wow!. You need to publish your memoirs.
    14 Sep 2010, 09:23 AM Reply Like
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