Senator Kemp Hannon announced that Governor George Pataki has signed into law legislation that will regulate the marketing of credit cards on New York's college campuses and better protect college students from incurring thousands of dollars in unwanted debt.

"The college experience is often the first time students are away from home and given the freedom to make financial decisions on their own," Hannon said. "This new law will put safeguards in place to ensure that New York's colleges and universities do not allow the unregulated marketing of credit cards on campus, and help students avoid the errors in judgment that they could wind up paying for many years later."

Under current law, there is no statute that prohibits or regulates the marketing and merchandising of credit cards on college or university campuses. However, the new law would prohibit the advertising, marketing and merchandising of credit cards on college campuses.

Colleges and universities, pursuant to a written credit card marketing policy, would be allowed to place limitations on the time and place in which credit cards may be marketed, require marketers to register with the college, prohibit marketers from offering gifts in exchange for enrollment, and provide educational programs on the risks of credit card abuse and the tools of effective credit management.

Additionally, the measure will create a uniform credit card marketing policy that will require on-campus credit card marketers to register and adhere to strict limits as to where and when they can market their products.

The new guidelines also prohibit credit card companies from offering gifts to students in exchange for completing an application, and it ensures they receive information on good credit management practices.

According to a recent report by Claritas, Inc - a market research firm - more than 67 percent of college students hold credit cards, a dramatic 24 percent increase in just five years. The report also found that the average balance due on those credit cards has grown by more than 134 percent.

The state offers numerous financial aid and loan programs to assist students in need, all of which offer a much lower rate of interest than a credit card. The new law takes effect July 1, 2005.