Credit Card Marketing Act of 2009
(Effective January 1, 2010)
The Credit Card Marketing Act of 2009 (P.A. 96-0261) regulates credit card marketing to students pursuing an undergraduate education at an institution of higher education. These students include anyone under the age of 21 admitted to or applying for admission to an institution of higher education, or enrolled on a full- or part-time basis in a course or program of academic, business, or vocational instruction where credits earned could be applied toward the earning of a bachelor's or associate's degree.
The following is a summary of the provisions required under the Act.
Any institution of higher education, including its affiliated entities, that enters into an agreement to market credit cards to students pursuing an undergraduate education must make a financial education program available to all students via posting on the institution’s web pages. The financial education program shall include, at a minimum:
Disclosure of Agreements with Credit Card Issuers:
Any institution of higher education, including its affiliated entities, that receives any funds or items of value from the distribution of applications for credit cards to undergraduate students must disclose agreements with credit card issuers. The disclosure applies only to agreements entered into after the January 1, 2010 effective date of the Act. The disclosure must include all of the following:
The disclosure must appear in the following locations:
For public institutions of higher education, all agreements with credit card issuers shall be subject to disclosure pursuant to the Freedom of Information Act. Likewise, reports prepared by institutions of higher education documenting their relationship with credit card issuers, otherwise disclosed to the Illinois Board of Higher Education are subject to Freedom of Information Act request.
Gifts and Inducements:
No institution of higher education shall knowingly allow on its campus credit card marketing activity that involves the offer of gifts, coupons, or other tangible property (such as gift cards, t-shirts, and other giveaways) to undergraduate students where the ultimate goal is to induce a student to complete an application for a credit card.
Student Information Prohibited:
Institutions of higher education may not provide to a business organization or financial institution, for the purposes of marketing credit cards, information about undergraduate students under the age of 21. The following information is prohibited:
The Attorney General may bring any action in the name of the State against any institution of higher education to restrain and prevent any violation of this Act and seek penalties in amounts up to $1,000 per incident.