Congressional Democrats Seek Information on Student Debit Cards; CFPB Plans "Banking on Campus" Event

CFPB Debit Cards U.S. Senate U.S. House

On September 26, several Democratic Members of Congress, including Assistant Senate Majority Leader Dick Durbin (D-IL), House Financial Services Ranking Member Maxine Waters (D-CA), House Education Committee Ranking Member George Miller (D-CA), and Senate Banking Committee members Sherrod Brown (D-OH) and Elizabeth Warren (D-MA), sent letters to the CEOs of numerous financial institutions asking that the institutions explain their student debit card deals with colleges and universities. The letters ask each financial institution for: (i) a list of colleges/universities where the institution has an agreement to enroll students in any deposit account or prepaid debit account and where the marketing, materials or financial instruments used to access such accounts are co-branded with a college or university logo, symbol, mascot or name; (ii) the number of accounts opened through agreements at each institution of higher education listed from the previous question, and the total fees collected from such accounts over the last three academic years; (iii) the total value of monetary and non-monetary remuneration provided to such institutions of higher education for the marketing of these products over each of the last three academic years; and (iv) whether any of the institution’s employees or agents have ever provided any monetary or non-monetary gift to an employee or agent of an institution of higher education, including meals, entertainment, gift cards, or compensation for an advisory committee above a $10 value as part of the institution’s marketing strategy over the past three academic years.

Earlier this year the CFPB initiated a review of campus affinity relationships, and on Monday, September 30, the CFPB is hosting an event regarding financial products offered at colleges.