SENATE JOINT MEMORIAL 44

47th legislature - STATE OF NEW MEXICO - second session, 2006

INTRODUCED BY

Cynthia Nava

A JOINT MEMORIAL

REQUESTING THE HIGHER EDUCATION DEPARTMENT AND THE REGULATION AND LICENSING DEPARTMENT TO STUDY CREDIT CARD SOLICITATIONS DIRECTED AT COLLEGE STUDENTS.

     WHEREAS, undergraduate and graduate students attending post-secondary educational institutions in New Mexico continuously receive multiple, unsolicited invitations to apply for credit cards; and

     WHEREAS, many students are issued credit cards even though they have limited income with which to pay credit card balances; and

     WHEREAS, the issuance of credit cards encourages spending beyond the financial abilities of credit card holders; and

     WHEREAS, credit through credit cards may entail membership fees and interest at annual percentage rates in excess of

twenty percent; and

     WHEREAS, many students lack the experience and financial maturity to use consumer credit responsibly; and

     WHEREAS, there is often no program of financial literacy directed at secondary and post-secondary students; and

     WHEREAS, the irresponsible use of consumer credit cards can result in significant financial debt and adverse credit ratings; and

     WHEREAS, consumer debt in general in the United States exceeds five hundred billion dollars ($500,000,000,000) and is often recognized as a significant problem in the national economy;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the higher education and the regulation and licensing departments be requested to study the extent to which credit card debt is a problem for students attending post-secondary educational institutions in New Mexico; and

     BE IT FURTHER RESOLVED that the higher education and the regulation and licensing departments be requested to investigate statutory and regulatory measures that might reduce problems involving credit card debt of students attending post-secondary educational institutions in New Mexico; and

     BE IT FURTHER RESOLVED that the higher education and the regulation and licensing departments be requested to report to the appropriate interim legislative committee by no later than October 1, 2006 on their findings of their study and recommended legislation to address identified problems; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the secretary of higher education and the superintendent of regulation and licensing. 

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