Report Prompts Senators to Ask CFPB to Examine Campus Cards

A study of campus cards by the U.S. Public Interest Research Group has led two senators to ask the Consumer Financial Protection Bureau to examine prepaid cards issued to college students. The cards are used for things like distributing financial aid and providing a way for students buy things both on and off campus. From an American Banker article:

Durbin and Miller want the CFPB to look into nine specific issues, including the average amount that students with campus-based debit cards pay in fees and penalties, and whether there is a conflict of interest for the colleges that enter into the agreements.

The CFPB has put out an Advance Notice of Proposed Rulemaking and has said it intends to regulate general purpose reloadable cards. With this request, the bureau may seek to create more broad-based rules, though it should be careful as not all prepaid cards are alike.

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