Alert November 13, 2012

CFPB Releases Annual Report on College Credit Card Agreements

The CFPB issued a press release highlighting findings and statistics in its College Credit Card Agreements Annual Report. The CARD Act and the CFPB’s implementing regulations require credit card issuers to annually submit to the CFPB the terms and conditions of any college credit card agreements in effect at any time during the preceding calendar year between the issuer and an institution of higher education, alumni organization, or a foundation affiliated with an institution of higher education. Credit card issuers are required to submit: (1) the number of credit card accounts covered by the agreement, (2) the amount of payments made by the issuer to the institution or organization during the year, (3) the number of new college credit card accounts covered by the agreement opened during the year, and (4) any MOUs between the issuer and institution that directly or indirectly relates to any aspect of the agreement.

The report noted that while the number of issuers increased from 2009 to 2011, the number of agreements decreased in that same period. The number of accounts open at year-end also decreased by 26% from 2009 and 2011. In conjunction with the release of the report, the CFPB announced the launch of the college credit card agreement database, where members of the public can read individual credit card agreements.