Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Legislators ask CFPB DOE to examine bankcollege cards
WASHINGTON (6/11/12)--Noting in a release that many colleges are pushing students into using campus debit cards that carry "numerous unnecessary, costly and unknown bank fees," Sen. Richard Durbin (D-Ill.) and Rep. George Miller (D-Calif.) last week urged the Department of Education and the Consumer Financial Protection Bureau (CFPB) to examine the bank-affiliated student debit card practices at more than 900 colleges and universities.

The legislators in a letter to CFPB Director Richard Cordray, Secretary of Education Arne Duncan, and Department of Education Inspector General Kathleen Tighe said they were concerned over the issues that bank/university debit card agreements could be creating for college students.

The debit cards held by many students "may come with high user fees, hidden transaction costs and insufficient consumer protections – adding to the mountain of debt many higher-education students must take on," they added. "U.S. student loan debt is reaching the $1 trillion mark, we should not allow costly and inappropriate debit card fees to add to that debt," the legislators said.

The release cited a U.S. Public Interest Research Group (PIRG) report that named PIN debit fees, balance inquiry fees, abandoned account fees, account closure fees, and prepaid debit card reloading fees among those giving students trouble.

However, PIRG in a separate release said "a well-structured debit card program can provide benefits to students."

Credit unions in many states offer the benefits of credit union membership to students through on-campus branches or college- or university-affiliated credit unions that serve students and employees of the school.
Other Resources

RSS print
News Now LiveWire
Have you read this one today in #NewsNow? What NCUA examiners look for on cybersecurity efforts: NCUA Report http://t.co/4g5wUavUAe
13 minutes ago
.@CFPB sets $2.75M fine v. auto finance co. it says "distorted consumer credit records for years": TX-based First Investors Fin. Serv. Group
54 minutes ago
University, college #creditunions add fin ed to higher ed. See #NewsNow http://t.co/NsyshwHPhg
2 hours ago
Are you going to be naughty or nice to your budget with holiday spending? http://t.co/FcN2YPxCIU
2 hours ago
Did U miss the July @TheNCUA open meeting? Now a video recording is available on the agency’s website. Go here: http://t.co/cxGs2bkdKt
3 hours ago