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Attorney General's News Release
August 17, 2007
College students beware; Nixon warns of offers of easy credit and other temptations when classes resume
Jefferson City, Mo. — Attorney General Jay Nixon is reminding college students and their parents to be careful when heading to campus this year. Nixon says students will face an increasing onslaught of offers from credit card companies, payday lenders and others hoping to capitalize on the back to school population.
Nixon urges students to think twice before accepting t-shirts, food coupons or other incentives for filling out a credit card application. For the majority of students who already have at least one credit card, Nixon reminds them to use their credit wisely.
“When you’re low on cash, it may be tempting to use a credit card for things like pizza, entertainment or clothes, but those bills quickly add up and become overwhelming,” Nixon said. “Making the minimum payment each month also seems enticing, but that creates a runaway train of debt that’s hard to ever catch.”
With a $3,000 balance at 19 percent annual interest, a $60 monthly payment will take nine years to pay off and cost more than $6,000. Students can stop the flow of pre-approved credit card offers by opting out at www.optoutprescreen.com.
Nixon also cautions against payday loans, another tempting offer of quick cash. In Missouri these loans charge an average of 400 percent annually. Many payday loan customers find it difficult to pay off their loan, so they renew their loan, which also leads to runaway debt.
Parents can consult a qualified financial planner to help make good decisions bank accounts, credit, debit and ATM cards, and other financial resources for their children.
Since the threat of identity theft is also very real on college campuses, students need to be cautious with their personal information. Nixon says sensitive documents with bank account, credit card or Social Security numbers need to be kept in a safe location, away from the curious eyes of roommates, friends and other visitors in college housing. Also, Nixon recommends students object if a school uses their Social Security number as a student identification number.
To further protect personal information, college students should keep their computers updated with anti-virus software, spyware detection and a firewall.
The Attorney General offers the Student Consumer Guide publication, a resource for teens and young adults, at no charge. This publication can be ordered online at ago.mo.gov or by calling Nixon’s Consumer Protection Hotline at 1-800-392-8222.
Take the Attorney General's online quiz about credit
Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).
All media inquiries should be directed to Press Secretary John Fougere.
E-mail Phone: 573-751-8844 Fax: 573-751-5818