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Los Angeles Bankruptcy Watch: UCLA Students Penalized or Banned for Using Credit Cards on Campus

By Encino Bankruptcy Attorney on July 28, 2011

For most students‚ getting by on Ramen Noodles and cheap housing is the only way to make it through four or more years of college. Credit card lenders know this‚ and their predatory lending practices are coming under fire. Now even the universities are getting in on the action.

At the University of California at Los Angeles‚ Forbes.com reports that students will be charged a 2.75 percent processing fee starting Aug. 1 in order to bring in more money to the school’s coffers. On top of that‚ the university has banned the use of VISA because it doesn’t allow institutions or merchants to charge a percentage-based user fee.

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With public institutions and municipalities feeling the budget crunch brought on by the Great Recession‚ they are looking to make money anyway they can. In this case‚ it appears that they are using the students to do that. But it’s the same way for predatory lenders. They often seek out people struggling with debt and offer perceived lifelines that can bring them closer and closer to default. Bankruptcy in Los Angeles can actually improve credit scores and lead to a healthier financial future. Los Angeles Bankruptcy Lawyers have helped countless consumers bounce back from bad debt and lead productive lives after the process has ended.

According to the article‚ the university reports that it costs $6.5 million per year to process credit cards and it will be passing that directly onto students.

The article states that 79 percent of students pay education expenses with credit cards and switching to a different pay system may pose big problems on campus. On top of the new fees‚ students are already expecting an 8 percent hike in tuition fees‚ which could make things very difficult for students.

Many college graduates are feeling the crunch of the economy and for some‚ filing for bankruptcy may be a good option. Graduating with high student loans and having to rely on multiple credit cards can leave recent grads with few options. With high interest rates and a low possibility of getting a job after school‚ they can be forced to make tough decisions.

But while bankruptcy sometimes gets a bad reputation‚ it can be very beneficial to those struggling with debt. Be able to clear out debt and start fresh‚ not having to deal with creditors calling and trying to garnish wages or take away a house are all benefits afforded consumers by bankruptcy protection.

Job loss‚ medical bills and high credit card debt are the three most likely reasons for filing bankruptcy. Here are some tips to fix and improve credit:

  • Budget and save
  • Avoid bouncing checks
  • Pay bills on time
  • Prevent any collection agency action
  • Check your credit report at least once a year
  • Clean up your credit report
  • Avoid “credit repair” scams
  • Start borrowing small and visit local lenders
  • Get a secured credit card with money you have saved
  • Apply for a loan with a co-signer

Los Angeles Bankruptcy Attorneys will provide a free consultation to help guide you in making a decision that works for you. In Encino‚ Glendale and Los Angeles‚ just call.

If you need to speak with a foreclosure litigation attorney in Los Angeles‚ Encino or Glendale‚ contact Nader‚ Naraghi & Woodcock‚ APLC at (800) 568-0707 for a free consultation.

Additional Resources:

VISA Is Banned on UCLA Campus — Students With Credit Cards Penalized‚ by Ilana Greene‚ Forbes.com


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