Us Citizen Bank Case
Anthony A. Aderhold
BETH 601-80
Case Analysis #2
“US Citizen Bank (A)”
Identification:
Should Ms. Jefferies submit information or withhold information to a governmental arm, even though participation is completely voluntary? Michelle Jefferies is vice president for the Niche Credit Markets Division for US Citizen Bank. During her tenure, the development of a college student credit card program has rapidly accelerated. At the same time the U.S. General Accounting Office (GAO) has requested US Citizen Bank’s participation and information regarding marketing strategies, credit card terms, underwriting terms specific to college student credit cards, etc. GAO is preparing a report specifically for three U.S. House of Representatives concerned about student credit card issuers on campus. Although the GAO is promising …show more content…
In fact, most are signing the application forms to receive a t-shirt, Frisbee or other “free” goodies. Most probably don’t know what APR means, how it is calculated or how missed payments and compounding interest can affect you personally. Without proper education to college students, students could encounter dangerous levels of debt, to the point of filing for bankruptcy. However, credit cards are assisting students build credit, assist in emergencies and ultimately aid in funding education at times when financial aid, grants, and other means of private financing are limited or unavailable. If college students are unable to obtain credit cards until they turn the age of 21 or until they have a full time job, some students may not be able to continue their studies. Besides the student body, the actual institutions are profiting from these credit companies in several instances. Private agreements with credit card companies, allowing them on campuses, fund shortfalls in public funding but is also promoting credit card marketing to college
BETH 601-80
Case Analysis #2
“US Citizen Bank (A)”
Identification:
Should Ms. Jefferies submit information or withhold information to a governmental arm, even though participation is completely voluntary? Michelle Jefferies is vice president for the Niche Credit Markets Division for US Citizen Bank. During her tenure, the development of a college student credit card program has rapidly accelerated. At the same time the U.S. General Accounting Office (GAO) has requested US Citizen Bank’s participation and information regarding marketing strategies, credit card terms, underwriting terms specific to college student credit cards, etc. GAO is preparing a report specifically for three U.S. House of Representatives concerned about student credit card issuers on campus. Although the GAO is promising …show more content…
In fact, most are signing the application forms to receive a t-shirt, Frisbee or other “free” goodies. Most probably don’t know what APR means, how it is calculated or how missed payments and compounding interest can affect you personally. Without proper education to college students, students could encounter dangerous levels of debt, to the point of filing for bankruptcy. However, credit cards are assisting students build credit, assist in emergencies and ultimately aid in funding education at times when financial aid, grants, and other means of private financing are limited or unavailable. If college students are unable to obtain credit cards until they turn the age of 21 or until they have a full time job, some students may not be able to continue their studies. Besides the student body, the actual institutions are profiting from these credit companies in several instances. Private agreements with credit card companies, allowing them on campuses, fund shortfalls in public funding but is also promoting credit card marketing to college