WASHINGTON (1/16/15)--The Credit Union National Association strongly supports the objective of the Consumer Financial Protection Bureau's proposed "Student Account Scorecard," according to the trade association's deputy general counsel, Mary Dunn.
The CFPB has asked for public comment on its plan intended to help colleges to avoid partnering with financial institutions that offer checking and prepaid accounts with "tricks and traps."
"We strongly support the overall objective of the proposed scorecard, which is to aid consumers in their financial decision making," Dunn said earlier this week.
However, the CUNA official said that it will be imperative going forward that the CFPB is careful not to create any new undue burdens for credit unions.
"While credit unions, including those that serve college and university campuses, work hard to provide great rates and services, we have initial concerns that this scorecard should not result in any new undue burdens for credit unions, since otherwise there are no new statutory or regulatory requirements in this area," Dunn said.
She added, "CUNA is carefully reviewing CFPB's Student Account Scorecard proposal and will comment coordinating closely with leagues and affected credit unions."
In its announcement, the CFPB said its proposed initiative is mean to help colleges access upfront information about fees, features, and sales tactics before agreeing to a sponsorship. Further, the bureau says the scorecard would help create a level-playing field for all financial institutions that offer affordable products, regardless of their ability to pay bonuses to schools.
"An important issue for young people is how best to manage their money while they are still in school," said CFPB Director Richard Cordray. "Because of the influence schools may have on the financial products students choose, we are working to arm them with the information they need to negotiate safe and affordable products for students."