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Release date 12/16/2015
WASHINGTON, D.C. – Consumers Union, the policy and advocacy division of Consumer Reports, praised the Consumer Financial Protection Bureau today for issuing warning letters to 17 colleges directing them to improve the disclosure of school-sponsored credit card agreements.
Earlier this year, Consumers Union contacted the CFPB and shared the results of its investigation finding that it was very difficult to find out information about contracts between schools and banks to market credit cards to students on campus. Today’s announcement by the CFPB confirmed similar findings based on the agency’s own investigation.
“Today’s action by the CFPB makes clear that the days are numbered for colleges and universities cutting secret deals with banks that offer financial products on campus,” said Suzanne Martindale, staff attorney for Consumers Union. “Students have a right to know the details of any deal their school makes with financial firms marketing campus credit cards.”
The Credit Card Accountability and Disclosure Act, or CARD ACT, was passed after the 2008 financial crisis to provide credit card reforms and protections to help consumers. The law requires colleges that have credit card marketing agreements with financial institutions to make the agreements available to the public, online or upon request.
“Students deserve to know whether their school has negotiated a good credit card deal or is just trying to pad their own finances,” said Pamela Banks, senior policy counsel for Consumers Union. “The CFPB should be applauded for ensuring that all schools follow the law by disclosing these contracts.”
Media Contacts:
Michael McCauley, Consumers Union, 415.431.6747 (office)│415.902.9537 (cell) or mmccauley@consumer.org
David Butler, Consumers Union, 202.462.6262 or dbutler@consumer.org
Kara Kelber, Consumers Union, 202.462.6262 or kara.kelber@consumer.org
Consumer Reports is a nonprofit membership organization that works side by side with consumers to create a fairer, safer, and healthier world. For 80 years, CR has provided evidence-based product testing and ratings, rigorous research, hard-hitting investigative journalism, public education, and steadfast policy action on behalf of consumers’ interests. Unconstrained by advertising or other commercial influences, CR has exposed landmark public health and safety issues and strives to be a catalyst for pro-consumer changes in the marketplace. From championing responsible auto safety standards, to winning food and water protections, to enhancing healthcare quality, to fighting back against predatory lenders in the financial markets, Consumer Reports has always been on the front lines, raising the voices of consumers.
© 2015 Consumer Reports. The material above is intended for legitimate news entities only; it may not be used for advertising or promotional purposes. Consumer Reports® is an expert, independent, nonprofit organization whose mission is to work side by side with consumers to create a fairer, safer, and healthier world. We accept no advertising and pay for all the products we test. We are not beholden to any commercial interest. Our income is derived from the sale of Consumer Reports® magazine, ConsumerReports.org® and our other publications and information products, services, fees, and noncommercial contributions and grants. Our Ratings and reports are intended solely for the use of our readers. Neither the Ratings nor the reports may be used in advertising or for any other commercial purpose without our prior written permission. Consumer Reports will take all steps open to it to prevent unauthorized commercial use of its content and trademarks.
Consumer Reports is a nonprofit membership organization that works side by side with consumers to create a fairer, safer, and healthier world. For 80 years, CR has provided evidence-based product testing and ratings, rigorous research, hard-hitting investigative journalism, public education, and steadfast policy action on behalf of consumers’ interests. Unconstrained by advertising or other commercial influences, CR has exposed landmark public health and safety issues and strives to be a catalyst for pro-consumer changes in the marketplace. From championing responsible auto safety standards, to winning food and water protections, to enhancing healthcare quality, to fighting back against predatory lenders in the financial markets, Consumer Reports has always been on the front lines, raising the voices of consumers.
© 2015 Consumer Reports. The material above is intended for legitimate news entities only; it may not be used for advertising or promotional purposes. Consumer Reports® is an expert, independent, nonprofit organization whose mission is to work side by side with consumers to create a fairer, safer, and healthier world. We accept no advertising and pay for all the products we test. We are not beholden to any commercial interest. Our income is derived from the sale of Consumer Reports® magazine, ConsumerReports.org® and our other publications and information products, services, fees, and noncommercial contributions and grants. Our Ratings and reports are intended solely for the use of our readers. Neither the Ratings nor the reports may be used in advertising or for any other commercial purpose without our prior written permission. Consumer Reports will take all steps open to it to prevent unauthorized commercial use of its content and trademarks.