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CFPB Calls on Financial Institutions to Publicly Disclose Campus Financial Agreements
Wednesday, December 18, 2013 7:00 AM

The Consumer Financial Protection Bureau (CFPB) is calling on financial institutions to publicly disclose agreements with colleges and universities to market debit, prepaid, and other products to students. Currently, institutions only make these disclosures about college credit cards. The CFPB also released its annual report on college credit card agreements, which showed a decline of 23 percent in college agreements from 2011 to 2012.

In researching this report, the CFPB found that:

  • Fewer college card agreements are in effect: The number of college card agreements in effect has declined by 41 percent between 2009 and 2012. In 2009, 1,045 college card agreements were in effect for over two million accounts, compared to only 617 agreements for just over a million accounts in 2012.
  • Institutions of higher education are paid less by credit card issuers: In 2009, colleges and universities were paid $84,462,767 by credit card issuers. In 2012, that figure was $50,396,103—a decline of about 40 percent.
  • Fewer new college accounts are being opened: While the number of college card issuers has increased from 18 to 23 in recent years, fewer new accounts are being opened. In 2009, there were 55,747 new accounts opened. In 2012, that number decreased by 18 percent to 45,519.

The College credit card agreements report is available at: www.consumerfinance.gov/reports/2013-college-credit-card-agreements

The CFPB’s public database on college credit card agreements is available at: www.consumerfinance.gov/credit-cards/college-agreements

The CFPB’s presentation at the Banking on Campus Forum is available at: files.consumerfinance.gov/f/201309_cfpb_banking-on-campus-forum.pdf

The CFPB also published a consumer advisory for students who receive scholarship and student loan proceeds on college-affiliated card products.

As part of the Paying for College platform, the CFPB developed a guide for students and their families on how to choose a student checking or debit card product. Managing Your College Money is available at: www.consumerfinance.gov/paying-for-college/manage-your-college-money

More information is available at:consumerfinance.gov/students