As an outcome of the CARD Act, the FRB now receives copies of agreements issuers sign with institutions of higher education, including the financial terms of the agreements. This now public database promises to offer both competing issuers and industry observers plenty of data to chew on.
The Credit Card Accountability Responsibility and Disclosure Act of 2009 (“Credit CARD Act”) requires issuers to submit to the Board annually their agreements with educational institutions or affiliated organizations, such as alumni associations. For each agreement, issuers are also required to submit information regarding payments made to the institution or organization and the number of accounts opened under the agreement. The Board’s report covers 1,044 agreements that were in effect during 2009.
A new online database, www.FederalReserve.gov/CollegeCreditCardAgreements, provides additional information about the agreements.
With the CARD Act restrictions on marketing to individuals under age 21, this new information on issuer marketing practices will likely come under a great deal of scrutiny.
Read press release: http://www.federalreserve.gov/newsevents/press/bcreg/20101025a.htm