Cuomo Presses Schools, Credit Card Companies for Information
February 29, 2008
by Paulina Mis
New York Attorney General Andrew Cuomo has an unparalleled resume. By attacking top companies and preaching justice to the people, he has made himself into something of a public superhero. Pursuing Facebook predators, Comcast, top banks, officials at elite universities, health insurance companies and even the infamous Gambino mafia crime family, each of his investigations is worthy of a motion picture.
After taking a short break from the student-loan investigation, Cuomo is back, and he comes bearing new subpoenas. This time, he is targeting--among others--credit card companies and the colleges and universities who conduct business with them. Of particular concern is the marketing of credit cards with college logos.
If you’re a college student who hasn’t received a ready-to-go credit card laminated with a picture of your alma mater, you haven’t paid sufficient attention to your junk mail. “So what’s wrong with logos?” you may ask. According to Cuomo and his entourage, it’s a mental thing. He believes that students who may not have otherwise signed up for multiple credit cards, or ones who used them sparingly, are swayed by their new and creative options. These students are at a greater risk of hurting their credit rating (which is adversely affected each time someone applies for a credit card) and spending extra money. The last thing the growing number of indebted students need is another credit card.
According to the Chronicle of Higher Education, Cuomo has also expressed concern about students who may be choosing their credit cards based on logos rather than optimal interest rates or good repayment options. Now I'm not saying that I haven't considered a logo card. It truly is "cute" and therefore bears great influence on college students. Still, I have faith that most students are too lazy to go through with the transaction.
For some, the credit card investigation may seem like a bit of a stretch. That may be a fair statement, but I'm all for Cuomo putting schools under the microscope. After discovering that many college and university officials agreed to place lenders on preferred-lender lists in exchange for money, they deserve a turn in the hot seat.