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Drumm English 111 October 22, 2013 Compare and Contrast Credit card companies generate billions of dollars every year in revenue. As a young 20-year old college-student, I am part of the biggest demographic in which credit card companies target: Young, broke, and reckless. Credit cards are great for people who are responsible and purchase items wisely, but not so great if your acting foolish with it and proceed like there is unlimited money at your disposal. In 2006, Travis Plunkett wrote a piece for CQ Researcher titled Yes Credit Companies Market Too Aggressively to Youths. As the legislative director of Consumer Federation of America, he purports that credit card companies are this big, evil empire who care about nothing else than getting a dollar. Since he works for the Consumer Federation of America, it makes sence that he looks out for the consumers. Basically, means hes on their side. On the other hand, you have Louis Freeh, who also wrote for CQ Researcher in 2006 in his piece titled No, Credit Companies Do Not Market Too Aggressively to Youths. Freeh is the vice chairman and general counsel for MBNA Corporation, and, because of his job title, he has every incentive to say nothing but positive thoughts when it comes to credit cards. While Plunkett and Freeh have contrasting opinions about credit cards, it is clear that they are both representing their respective employers to the fullest extent.

Regets Plunkett and Freeh both published articles in CQ Researcher in 2006. This is a widely respected magazine and it just so happens that its biggest readers are college students. Coincidence? Probably not. They both knew what they were doing when they decided to write for this publication. They wanted to persuade people (mostly college kids) that they are the ones they should believe. They went in with the same intentions and those were either: yes credit companies are bad, or credit companies are good. Plunkett states that in the early 1990s, card issuers targeted massive marketing efforts at college campuses across the country (101). Freeh says that the MBNA does promote its products to college-aged customers by partnering with more than 700 colleges and universities, primarily through the college alumni associations (102).. Freeh doesnt deny this: in fact, he seems proud of it. Freeh says that When we grant a card to college student, we think of it as the beginning of what we hope will be a long relationship (103). Plunkett does believe that credit card companies want to have a long relationship with the consumer, he just believes that they may have ill intentions for wanting a long-term relationship. They offer contrasting opinions when it comes to the age in which people should sign up for a credit card. Freeh says that Our experience has also been that college students are no more likely to mishandle their accounts than any other group of customers (103), which is the opposite of what Plunkett had to say when he said that Americans under age 35 continue to show more signs of trouble managing credit card debt than other age group (101). Freeh seems to come off as a guy who doesnt really answer questions directly and has something to hide. Freeh is not showing any facts to support his claim that college students are no worse than

Regets older individuals with credit cards. Common sense should prevail because this is simply just wrong and incorrect. People with more life experience, wisdom, and knowledge should be better at maintaining a credit card without going into debt, shouldnt they? Freeh clearly doesnt believe that. Freeh says, everyones interest is best served when college students make responsible use of credit (103). Plunkett says, many creditors have also significantly increased their penalty fees, even for small transgressions like a payment that is made only a few hours late (101). It may just be me, but it seems as if Freeh is using a lot of propaganda and sweet talk with the purpose of coming off as if credit card companies are there to help us rather than to make billions of dollars, which I dont buy for one second. Neither should you, at the end of the day credit card companies are nothing more than a business. Their only goal at the end of the day is to make a buck. Even if college students were to have a job, would they even be able to afford the interest rates on credit cards? Most college students applicants report a separate income, and many already have an established credit history(102). How is this even possible? Sure a, lot of college students have jobs to help support them, but dont they use that money mostly for food, booze, and tuition? On top of that, they are probably working at McDonalds and making minimum wage. I, for one, do not know a single person my age with an established credit history. Why would an honest company give credit cards to kids like these? To make money, simple as that. Plunkett says, young people are also financially vulnerable to the questioning pricing and business practices adopted by issuers to increase the profitability of lending to riskier customers (101). Their differences are quite obvious. Plunkett is

Regets not for young people getting credit cards. He believes that credit card companies charge way to much interest and they are dirty. Many creditors have also significantly increased their penalty fees. (101). Like being only a few hours late on a payment. Plunkett states that Universal default, in which a consumer must suddenly pay a sharply higher interests rate on their outstanding balance with one credit card company because of a minor problem with another creditor. (101) Plunkett and Freeh are highly respected people in their field of work. Plunkett is a big shot director for the Consumer Federation of America, and Freeh is the Vice Chairman for MBNA. They, of course, will not jeopardize their company in any way, shape, or form. They are representing a brand, a company, who pays their bills. Freeh believes students should have credit cards and Plunkett believes they shouldnt have credit cards. They couldnt be more different when it comes to that. With all their differences and similarities these men have with one another it is clear that credit cards are a very divisive subject, and people of all ages should do their homework on them before getting one.