By Jennifer Hilinski

New credit card legislation in effect will restrict on-campus marketing for credit card companies.

Last May, President Barack Obama signed the Credit Card Holders’ Bill of Rights Act of 2009, which regulates the marketing efforts creditors pitch to students younger than 21, according to a news release from CreditCards.com.

In the past, local businesses helped market credit cards on UK’s campus by offering students extra incentives, but under this new legislation, creditors are prohibited from giving gifts to these students applying for a credit card on campus

John Kadera, shift leader at Papa John’s on Avenue of Champions said they used to either donate the pizzas to credit card companies or offer them a discount for their promotional incentives.

Kadera said it should not affect Papa John’s’ business largely but that it would affect some of the weekly sales.

Papa John’s would lose some business because credit card companies are no longer allowed to give incentives to students, he said.

“Of course we’re going to lose business, it’s like every dollar we make counts,” Kadera said.

Other provisions included on the bill are that banks must notify colleges before marketing on campus and they are required to reveal the relationship between the college and bank, according to the news release.

In addition, creditors cannot provide a credit card to students under 21 without the consent of a parent or open an account for any student who does not have an annual income.

Although students can no longer receive incentives, the bill protects them from the possibility of making charges they cannot afford, according to the news release.

On-campus creditors can be dangerous, said Thom Payne, director of branch sales and service at the UK Federal Credit Union.

“Getting a credit card for a T-shirt has never been, nor will it ever be, a good idea,” Payne said.

The average credit card balance for undergraduate students is about $3,100 and continues to climb each year, Payne said.

“The best way to combat that is for students to make timely, educated decisions on their credit options,” he said.

This new credit card bill will likely tighten or end on-campus marketing for credit card companies by next fall, according to the news release.

Implementing these changes will be beneficial to students, Payne said.

“Restricting access to credit cards should help support better decisions. Credit cards can be a useful tool for building a sound credit rating, but I think it makes sense to check with your own financial institution to see what they offer,” Payne said.