Cuomo Opens Probe of Credit-Card Marketing to New York College Students

New York began a statewide investigation into credit-card marketing practices that target college students through their institutions.

Attorney General Andrew Cuomo has sent letters to every college and university in New York requesting that the schools submit any exclusive contracts they have with credit and debit card companies, according to an e-mailed statement.

Cuomo is looking into whether marketers have gotten personal contact information for students without their consent, and seeking to review contracts that offer exclusive rights to market cards branded their insignia.

“Today’s students are facing a growing mountain of debt that can burden them long after graduation,” Cuomo said in the statement. “As the new school year begins, we want to make sure that colleges and universities are doing all that they can to help students avoid financial dangers.”

Cuomo conducted a nationwide investigation beginning in 2007 into conflicts of interest, and payments and perks to colleges and financial aid offices, in the $85 billion student loan industry. About a dozen lenders and 28 colleges agreed to cut financial ties as a result.

To contact the reporter on this story: Karen Freifeld in New York State Supreme Court at kfreifeld@bloomberg.net.

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