WASHINGTON—The Consumer Financial Protection Bureau has issued a report on agreements between credit card issuers and institutions of higher education, as well as certain organizations affiliated with such institutions.
The report finds that in 2019 the number of total agreements in effect, as well as the number of accounts open under the agreements, continues a general trend of decline, the CFPB said.
Overall, between 2009 and 2019 the number of agreements in effect, year-end open accounts, and payments by issuers all declined by more than two-thirds. Agreements with alumni associations continue to represent the large majority of agreements, accounts, and payments by issuers, the agency explained.
“These trends appear likely to continue into 2020. Of the 220 agreements represented by issuers’ submissions for 2019, 49 were marked as having been terminated at some point during the course of the year, representing 22% of all 2019 agreements,” the report states. “However, terminated agreements represented only about 52,000 open accounts, or just under 9% of all accounts open as of year-end 2019, and only about $800,000 in payments, less than 4% of payments by issuers. This suggests that even as issuers continue to reduce the number of college credit card agreements to which they are a party, they are preserving those agreements which comprise most of their activity pursuant to such agreements.”
Required by CARD Act
The Credit Card Accountability, Responsibility, and Disclosure Act (CARD Act) requires credit card issuers to submit to the Bureau an annual report of information on their agreements with institutions of higher education, or certain organizations affiliated with such institutions.
The CARD Act also requires the Bureau to submit to Congress, and to make available to the public, and annual report that lists that information. The college credit card information and agreements submitted to the Bureau by credit card issuers are available on the Bureau’s website.
To read the report click here.