Colleges have continued to embark on fewer agreements with credit-card companies, according to the Consumer Financial Protection Bureau’s
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Colleges have continued to embark on fewer agreements with credit-card companies, according to the Consumer Financial Protection Bureau’s annual report on the agreements, released on Monday. They have instead opted to participate in the marketing of products that are subject to less scrutiny, like debit cards and prepaid cards, the report states.
The report is the fifth to be issued since passage of the Credit Card Accountability Responsibility and Disclosure Act of 2009, which requires colleges to report the terms of their credit-card agreements to the bureau.
Among other things, this year’s report says that the number of credit-card agreements has decreased by almost 70 percent since the law was enacted. But while only 336 credit-card agreements were in effect at the end of last year, the report says at least 852 institutions have agreements with companies to market debit cards or similar products to students. In February the Government Accountability Office criticized colleges for making agreements with banks to promote debit cards to students.
From the report, here’s a look at how colleges’ habits have changed since 2009:
