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S3426Senate2017-2018 Session

Credit Card Ed Required First

Official title

“Provides that there shall be no solicitation for credit card holders through state or city university of NY unless credit education courses are provided”

Sponsor Kevin S. ParkerSD-21Affects Finance
Status
In Senate Committee
Banks
Impact
5/10
Moderate
Passage
0%

Bill progress

Step 2 of 7

In committee · Banks

What's happening

This bill prohibits SUNY and CUNY from allowing credit card solicitation on campus unless credit education courses are provided to students.

Why it matters

  1. Directly targets student vulnerability to credit card debt. by making credit card solicitation on SUNY and CUNY campuses conditional on providing students with credit education, potentially reducing impulsive or uninformed credit decisions.

  2. Requires credit card issuers to actively invest in student financial literacy. if they wish to solicit on campus, which could improve students’ understanding of interest rates, fees, and responsible card use before they sign up.

  3. Mandates the development of standardized credit education courses. under the oversight of the Commissioner of Education, ensuring that any educational content delivered is consistent and meets regulatory standards.

  4. May limit aggressive marketing practices by credit card companies. on public university grounds, shifting campus culture away from easy credit access and toward more informed financial decision-making.

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Who cares

Headline styles

Credit Card Ed Required First

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Kevin S. Parker

Senator · Senate District 21

No co-sponsors yet.

History

  1. Referred to banks
  2. Referred to banks

Full text

2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

3426

2017-2018 Regular Sessions

IN SENATE

January 23, 2017

Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Banks

AN ACT to amend the banking law and the education law, in relation to prohibiting the state university of New York and the city university of New York from permitting any persons to solicit persons to become holders of credit cards unless credit education courses are provided

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. The banking law is amended by adding a new article 17 to read as follows:

ARTICLE XVII

CREDIT CARD SOLICITATION; CREDIT EDUCATION COURSES Section 9500. Prohibition of soliciting persons to become credit card

holders at the state university of New York unless cred-

it education courses are provided.

9501. Prohibition of soliciting persons to become credit card

holders at the city university of New York unless cred-

it education courses are provided.

§ 9500. Prohibition of soliciting persons to become credit card holders at the state university of New York unless credit education courses are provided. The state university of New York shall not permit any person, including an issuer of credit cards, as defined in subdivision three of section five hundred eleven of the general business law, to solicit persons on the property of the state university of New York to become holders of credit cards, nor shall the state university of New York enter into any agreement allowing any person to solicit persons to become holders of credit cards through the state university of New York, unless such person offers and provides courses in credit education to students enrolled in the state university of New York. Such courses shall be given in accordance with rules and regulations to be promulgated by the commissioner of education.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD06612-01-7

S. 3426 2

§ 9501. Prohibition of soliciting persons to become credit card holders at the city university of New York unless credit education courses are provided. The city university of New York shall not permit any person, including an issuer of credit cards, as defined in subdivision three of section five hundred eleven of the general business law, to solicit persons on the property of the city university of New York to become holders of credit cards, nor shall the city university of New York enter into any agreement allowing any person to solicit persons to become holders of credit cards through the city university of New York, unless such person offers and provides courses in credit education to students enrolled in the city university of New York. Such courses shall be given in accordance with rules and regulations to be promulgated by the commissioner of education.

§ 2. The education law is amended by adding a new section 355-d to read as follows:

§ 355-d. Prohibition of soliciting persons to become credit card holders unless credit education courses are provided. The state university of New York shall not permit any person, including an issuer of credit cards, as defined in subdivision three of section five hundred eleven of the general business law, to solicit persons on the property of the state university of New York to become holders of credit cards, nor shall the state university of New York enter into any agreement allowing any person to solicit persons to become holders of credit cards through the state university of New York, unless such person offers and provides courses in credit education to students enrolled in the state university of New York. Such courses shall be given in accordance with rules and regulations to be promulgated by the commissioner.

§ 3. The education law is amended by adding a new section 6204-b to read as follows:

§ 6204-b. Prohibition of soliciting persons to become credit card holders unless credit education courses are provided. The city university of New York shall not permit any person, including an issuer of credit cards, as defined in subdivision three of section five hundred eleven of the general business law, to solicit persons on the property of the city university of New York to become holders of credit cards, nor shall the city university of New York enter into any agreement allowing any person to solicit persons to become holders of credit cards through the city university of New York, unless such person offers and provides courses in credit education to students enrolled in the city university of New York. Such courses shall be given in accordance with rules and regulations to be promulgated by the commissioner.

§ 4. This act shall take effect on the first of September next succeeding the date on which it shall have become a law; provided that the commissioner of education is immediately authorized and directed to promulgate, amend and/or repeal any rules and regulations necessary to implement the provisions of this act on such effective date.

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

Title of bill

An act to amend the banking law and the education law, in relation to prohibiting the state university of New York and the city university of New York from permitting any persons to solicit persons to become holders of credit cards unless credit education courses are provided

Purpose or general idea of the bill

The establishment of credit education courses for college students interested becoming card holders.

Summary of specific provisions

Amends the banking law by adding section 9500 to prohibit the State University of New York from permitting the solicitation of credit cards on campuses to enrolled students unless credit education courses are provided. Amends the banking law by adding section 9501 to prohibit the City University of New York from permitting the solicitation of credit cards on campuses to enrolled students unless credit education courses are provided. Amends the education law by adding section 355-d to prohibit the State University of New York from permitting the solicitation of credit cards on campuses to enrolled students unless credit education courses are provided. Amends the education law by adding section 6204-b to prohibit the City University of New York from permitting the solicitation of credit cards on campuses to enrolled students unless credit education courses are provided.

Justification

With the rising cost of tuition at SUNY and CUNY campuses, sound budgetary spending by enrolled students is more important than ever before. Many students on State and City University campuses acquire credit cards because there is an open door policy permitting solicitation. Credit card companies target young college students because of their necessity to purchase numerous goods and services throughout their educational experience. More often than not, these credit card solicitors fail to warn college students of the responsibilities involved with being credit card holders. We believe this is unacceptable negligence on the part of the credit card solicitors. The goal of this bill is to educate young college students about credit awareness and the repercussions of falling into credit indebtedness. It is our hope that credit education courses become a mandatory element in qualification for students of both SUNY and CUNY campuses requesting to become credit card holders, for their own protection.

Prior legislative history

2015-16: S.1725 - Referred to Banks 2013-14: S.1630 - Died in Banks 2011-12: S.1467/A.1361 - Referred to Banks 2009-10: S.1932/A173 - Referred to Banks 2007-08: S.3783/A.3034 - Referred to Banks 2005-06: S.1639/A.10573 - Referred to Banks

Fiscal implications

None to state government.

Effective date

This act shall take effect on the first of September next succeeding the date on which it shall have become law.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.