publicly disclose agreements with colleges and universities
In an announcement yesterday, the Consumer Financial Protection Bureau (CFPB) called on financial institutions to "to market debit, prepaid, and other products to students. Currently, institutions only make these disclosures about college credit cards."
Students and their families should know if their school, whether well-intentioned or not, is being compensated to encourage students to use a specific account or card product,” said CFPB Director Richard Cordray.
“When financial institutions secretly give kickbacks to schools, they are engaging in risky practices.”
CFPB noted that a lack of transparency in the student loan and credit card markets led Congress to enact reforms to help the public better understand the marketing partnerships between colleges and lenders.