Alert February 05, 2013

CFPB Launches Inquiry on Marketing of Financial Products to Students

The CFPB published a Notice and Request for Information regarding financial products marketed to students through the colleges and universities they attend. Although the Credit Card Act of 2009 and CFPB regulations (see November 13, 2012 Alert) govern certain marketing practices on campuses by financial institutions, specifically with respect to credit cards, the CFPB is seeking to obtain more information about other financial products to determine whether students are "getting a good deal," and to better understand ways to promote good financial decision-making by younger consumers. The request seeks specific responses to issues such as: (1) what types of products are being offered; (2) how the products are offered; (3) what information about students the schools provide to the financial institutions; (4) what fees are being charged; and (5) what experiences students have had. Comments must be received by March 18, 2013.