Credit Card Companies targeting College Students on Campuses Essay

Credit Card Companies targeting College Students on Campuses - Essay ExampleMoreover, almost a one-third of the 76% of current college students have been offered free gifts in order to abridge up for the acknowledgement tease. Consequently, this has lead to nearly a dozen of states restricting credit bankers bill marketing to students within campuses. Despite such(prenominal) moves, credit companies have persistently remained aggressive in signing up students within campuses for credit planks (Chu). This is despite the common view credit companies should non target college students on their campuses while marketing credit card.Arguments against Marketing of Credit Cards to Students within CampusesMarketing of credit card game to students within campuses is against provisions of federal official Law on credit cards for college students. According to Chu, Federal Law on credit card categorically outlines that no bank or financial lending institution should give credit card to students and young adults of below 21 years who have no steady income or cosigner. This federal police force prohibition provides a framework within which credit cards should be given that is, to persons above 21 years with a steady income. Unfortunately, most undergraduates after finishing school end up with gigantic credit, which may eventually lead to bankruptcy and at the verge of financial crisis. Based on statistics obtained by the US universal Interest Research Group, graduating college students leave school with approximately $ 4,000 in debts (Uspirg.org). The US Public Interest Research Group goes ahead to establish that 56% of undergraduates obtain their first credit cards at the age of 18 years, which is a period when someone cannot make informed decisions (Uspirg.org). Whats more, by the time such a student is graduating, he or she will be in self-control of four or more credit cards. Credit companies have been forced to enter into unethical employment practices in order to entice and persuade college students to sign up for credit cards. College students are vulnerable to sixpenny offers such as T-shirts, pizzas, and other free gifts. Financial institution clearly understands the vulnerability of college students, which they unethically gain on to convince them to sign up for credit cards (Chu). Convincing and enticing of college students do not only include gifts but also dwell in short-lived offers such as lour interest rates and other deceptive marketing practices. For instance, in 2007 the state attorney charged Citi stick and its marketing counterpart, Elite Marketing with application of deceptive marketing practices to entice students in order to sign up for credit cards. Taking advantage of consumers situation and vulnerability is an unethical practice that may only end up ruining and organization. The credit companies responsible for marketing of credit cards to students should be prohibited from taking advantage of college stud ents vulnerability to cheap offers. College students other than being vulnerable to cheap offers are new, inexperienced, and uninformed adequately regarding credit cards and in the market place. In this regard, marketing credit cards with only advantages will make students accept such offers without understanding how it works and demerits (Dickler). As a result, galore(postnominal) of them end up incurring hefty sums of debts, which trails back to their parents. Placing more burdens to parents in addition to their normal responsibilities of stipendiary tuition fee and caring for students is unfair and uncalled for especially in the contemporary business world where financial support standards have incrementally increased. Statistics by US Public Interest Research Group clearly indicates that 61% of students amply depend on their parents for fee and all other educational costs, with 40% and 38%