Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
CFPB Wants FIs to Disclose Campus Financial Agreements
WASHINGTON (12/18/13)--The Consumer Financial Protection Bureau called on financial institutions to be more transparent about commercial deals with colleges and universities.
The request, which focuses on debit and prepaid cards and accounts marketed toward students, came on the heels of an annual report to Congress about similar arrangements over credit cards.

"Students and their families should know if their school, whether well-intentioned or not, is being compensated to encourage students to use a specific account or card product," said CFPB Director Richard Cordray. "When financial institutions secretly give kickbacks to schools, they are engaging in risky practices."

The CFPB concluded in September that details about college and university-sponsored accounts are often difficult to obtain. Consumers wanting details about these deals may only find them after filing requests under state open records laws.

The agency's annual report on arrangements between credit card issuers and higher learning institutions found that such deals have declined since 2009, when Congress mandated the disclosure of details surrounding them. In 2009, there were 1,045 agreements that saw universities and colleges take in more than $84 million for over two million accounts. In 2012, there were 617 agreements worth over $50 million for over one million accounts.

The CFPB said that financial institutions "have shifted" to student checking and debit and prepaid card products, and that these agreements now "outnumber college credit card agreements."


RSS





print
News Now LiveWire
Final field-of-membership rule tops April 30 NCUA agenda http://t.co/gFIhRhUCts
13 hours ago
.@CUNA's @Nussle speaks to @VonnieQuinn about #StoptheDataBreaches and reg. relief. http://t.co/TMTubG9Afk
15 hours ago
RT @NCUFoundation: .The Foundation's @hylandhighway with @NatlJumpStart President/CEO Laura Levine at #FLHillDay2015 today: http://t.co/ep5…
17 hours ago
Seriously underwater homes rise, new-home sales tumble News Now: http://t.co/2LzWTkqnES
17 hours ago
#NewsNow Cornerstone Foundation awards $71K in grants http://t.co/Y6D8K9rwWv
19 hours ago