CFPB Finds Expensive College-Endorsed Banking Products – Investopedia
The Consumer Financial Protection Bureau (CFPB) has released a report detailing the fees and terms of banking products marketed to college students in partnership with their schools. The report not only highlights the lack of transparency in the partnerships between financial institutions and colleges but also suggests that marketing deals may not comply with rules set by the U.S. Department of Education.
The CFPB's annual report to Congress highlighting college banking and credit card agreements has raised some questions for both the consumer watchdog agency and the Department of Education.
In the report, the federal agency highlights 11 account providers, including banks, credit unions and non-bank entities, that partner with 462 colleges and universities to offer more than 650,000 student accounts. The CFPB's findings are as follows:
In response to the report, the Department of Education released a Dear Colleagues letter reminding educational institutions of their obligations in their agreements and partnerships with financial institutions.
You can read the full CFPB report for more details on the federal agency’s findings.
Consumer Financial Protection Bureau. "College Banking and Credit Card Agreements."
Consumer Financial Protection Bureau. "CFPB Report Finds High Fees Charged on Student Banking Products Endorsed by Colleges."
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