by Joseph Kenny | 04/10/09

There has been some public controversy surrounding a bill in the Ohio State House of Representatives. The piece of legislation meant to ban the marketing of credit cards on college campuses is being virulently opposed by Ohio State University. School officials are fighting to protect their credit card agreement with Bank of America intact.

This new measure would go beyond the regulations imposed on college campus credit card marketing, by calling for a total ban on activities. House Bill 12 world effectively end the lucrative marketing agreements currently held between universities and card companies.

The bill's sponsor, head of the House Consumer Affairs Committee, Rep. Matt Lundy noted, "I do think there is a strong feeling among all those states that it's an issue, otherwise they wouldn't have tried to take action."

According to Lundy, the main points of contention involve the incentives offered to the schools to provide card companies with student information and that the students are encouraged to sign up because of free gifts.

In testimony given by Kate Trombitas, the assistant director of the school's Student Wellness Center, focused on the school's efforts to education students on personal finance. She also stated that in most cases of debt-ridden students she counsels, the credit cards come from any number of sources off campus.

An official from the Ohio State Alumni Association when further than Trombitas by suggesting it may be that the credit cards marketed to students beyond the Ohio State campus that end up being the bigger problem rather than the arrangement it has with Bank of America.

The college received almost $1.4 million in royalties each year from Bank of America, through its exclusive licensing of cards with the OSU logo and additional on-campus advertising. Bank of America receives a mailing list of staff and students from OSU. The Alumni Association receives about $1.2 million.