Financial services institutions were restricted from certain types of marketing on college campuses under the Credit CARD Act of 2009. Now the Consumer Financial Protection Bureau is going to school on the issue, potentially with a much wider scope.
The bureau has launched an inquiry into a broad range of banking products offered on campus, including student identification cards that double as debit cards, cards used to access scholarships and school-affiliated bank accounts.
"We have seen many colleges establish relationships with financial institutions to offer banking services to their students," CFPB Director Richard Cordray said in the news release announcing the inquiry.
"The bureau wants to find out whether students using college-endorsed banking products are getting a good deal."
The CFPB is seeking information from the public, financial institutions and colleges on how loans and cards are marketed on campus, and how fees and agreements are structured. The investigation dovetails with the CFPB's interest in both student loans and credit cards.
In December, the bureau issued a guide on how its examiners will review private student lenders. That followed an annual report released to Congress in October that found high default rates and cracks in the servicing system for student financial products.
The new inquiry was announced at the end of January. The public can submit comments online until March 18.
