House approves bill to restrict credit card solicitation on campuses
The University of Tennessee system has contracts with credit card companies that allow them to use the UT name on the cards and contact students and alumni. The bill could reduce the amount the university gets from the contracts by $300,000 to $500,000 per year, said Hank Dye, UT vice president for public and governmental affairs.
Five universities within the Board of Regents system — Austin Peay State University, East Tennessee State University, Tennessee Technological University, University of Memphis and Middle Tennessee State University — also have contracts with credit card companies, Regents spokeswoman Mary Morgan said.
House Speaker Pro Tempore Lois DeBerry, D-Memphis, sponsored the bill because she believes it is morally wrong for universities to profit from credit card companies soliciting business from students.
Under the bill, credit card companies would not be allowed to solicit business on campus, at university functions and athletic events or through university-affiliated organizations.
The companies also would not be allowed to offer gifts to students who sign up for a credit card, and they would have to let students delete their names from solicitation lists.
The bill was approved 90-2 on Monday with little discussion. The House has passed similar legislation in the past, but the Senate has defeated it.
The Senate was scheduled for a hearing in a committee on Monday, but it was postponed because sponsor, Sen. John Ford, D-Memphis, was not present. The hearing was rescheduled for Tuesday.
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Information from: Knoxville News Sentinel: www.knoxnews.com