Credit Education

Legislators often pass laws regulating consumer credit as a result of highly publicized "horror cases" in which some consumers have been hoodwinked by an unconscionable credit grantor. (Of course, consumers are also deceived sometimes when they pay with cash.) Basically, such problems arise because the market works. The avaricious credit grantors and the incompetent consumers find each other. Legislation is seldom able to prevent these meetings. In the long run, education of the consumers is needed to help them to avoid unconscionable suppliers of goods and services, such as credit.

The American Financial Services Association has been a leader in credit education for many years, but now Citigroup has entered the field. CardTrak reports that it is teaming with EdVenture Partners to take Citigroup's Credit-Ed program into college classrooms throughout the country during the spring semester. Citigroup's web site, www.credit-ed.citibank.com, offers a variety of free credit-related tools, information and other educational materials, such as a 30-minute video of students discussing money and credit problems. The site also offers a Credit-Minder that students can use to keep track of their expenditures using their credit card. Monthly statements supplement the website and on-line account management to help students to track and categorize where their money goes. A comic strip portrays credit issues likely to be faced by college students. The site also provides links to other useful web sites. Finally, Citibank has a web site for university administrators: www.credit-edadministrator.com