The Consumer Financial Protection Bureau (CFPB) seeks input on a draft “Safe Student Account Scorecard.” The proposal would provide colleges with up-front information about fees, features, and marketing practices before agreeing to a sponsorship with a financial institution. The comment deadline is March 16, 2015.
Many colleges make deals with financial institutions where the college helps with—or allows the promotion of—credit, debit, or prepaid cards, sometimes endorsed with a college logo or linked to a student identification card. Colleges, either directly or indirectly, typically receive a share of the revenue generated from the cards, and financial institutions have access to a new group of consumers. The scorecard would solicit information to assist a school in its selection process.
Financial institutions would provide schools:
According to the CFPB’s Jan. 14 press release, the scorecard intends to level the playing field for financial institutions that offer safe and affordable products, regardless of marketing budgets. Schools could adapt the scorecard to meet their unique needs.
The CFPB wants input on the proposed scorecard from students, parents, colleges, and financial institutions.
Credit unions may submit comments via regulations.gov or email comments directly to email@example.com. Include “Docket No. CFPB-2015- 0001” in the subject line of the message. Also share your credit union’s comments with CUNA and your state league.
For more information on the CFPB’s Request for Information, visit consumerfinance.gov/students.