CFPB to Investigate Financial Products Aimed at College Students
The Consumer Financial Protection Bureau is launching an inquiry into the impact of financial products marketed to students through colleges and universities. It will then determine whether these arrangements are in the best interest of students.
“We have seen many colleges establish relationships with financial institutions to offer banking services to their students,” said CFPB Director Richard Cordray. “The Bureau wants to find out whether students using college-endorsed banking products are getting a good deal.”
The CARD Act of 2009 added regulations and restrictions on financial institutions using certain types of marketing practices on college campuses. Agreements between credit card issuers and institutions of higher education are now subject to public disclosure. But not a lot is known about the arrangements regarding other financial products marketed to students, such as student identification cards that double as debit cards, school-affiliated bank accounts, and cards used to access scholarships and student loans.
To better understand the market, the CFPB published a Notice and Request for Information today on the topic of campus financial products. The Bureau is seeking input from the public, students, families, financial institutions, and the higher education committee on a variety of related issues including:
- What information schools share with financial institutions when they establish these relationships.
- How campus financial products are marketed to students.
- What fees students are being charged to use these products.
- How schools set up marketing agreements with financial institutions.
- Student experiences using campus financial products in their day to day lives.
Comments will be accepted through March 18.