“DON’T GET FOOLED” VIDEO FROM AMERICANS FOR FAIRNESS IN LENDING
August 22, 2008
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Americans For Fairness In Lending (AFFIL) sent me this email, and it’s true: you need to warn your college-bound young people, NOT TO GET FOOLED by the credit card industry, and fall for bad or unnecessary credit offers.
Dear J. Thomas,
Did you know that college students are a favorite target of credit card companies? Students often trigger high interest rates and fees, providing a sweet spot for profits for the industry. If you’re heading off to college this fall — or taking one of your kids — be sure to watch out for aggressive solicitors offering t-shirts, pizza, Frisbees and even iPods to lure students into signing up for cards. Chances are, you’ll see them on campus or very near by. Know in advance that the value of the freebie will be gone as soon as the first penalty hits.
Check out our funny but disturbing video clip about credit cards on college campuses.
Credit card companies sign up students with little or no income, knowing they’ll trigger high penalty interest rates and fees. That’s where they make their big money.
Free t-shirts, Frisbees and pizza come at a dangerous cost. A signature can lock in very unfair terms.
According to research by our partner U.S. PIRG, a majority of students use credit cards, and many pay the price through late fees, high balances and delinquencies. To protect yourself, and your college-age kids and friends, check out our Credit Card Tips for College Students. And be sure to watch and share our video – and spread the word!
State Legislative Update: Good news! North Carolina passed a law with a number of new consumer protections, including a ban on subprime “yield-spread premiums.” Yield-spread premiums are essentially kickbacks that brokers routinely receive on subprime loans for steering a borrower into a higher interest rate than they could receive. To read more, visit our partner the Center for Responsible Lending.
Want a better understanding of the subprime mortgage meltdown? Check out this great new video from our partner the California Reinvestment Coalition.
Best regards,
Sarah Byrnes
Campaign Manager, AFFIL
“Don’t Get Fooled” Video From Americans for Fairness in Lending
