WASHINGTON—The college credit card market continues to decline, according to a new report from the CFPB.
The report—the Bureau’s annual analysis of college credit card agreements—shows this market continues to shift from credit card agreements to college-sponsored checking and prepaid accounts.
In 2015, financial institutions paid colleges and universities nearly $27 million based on 806,430 credit cards open under marketing agreements. This has declined from some 1,045 agreements in effect in 2009 totaling $84 million, the Bureau said.
The Bureau’s report also notes that the CFPB remains concerned around the lack of transparency in these contracts.
“Despite the decline in the market, the Bureau continues to highlight the importance for students and the public to be able to easily review credit card marketing agreements. Through this transparency, they can see how much their school is being compensated by card issuers to use a specific account or card product,” the agency said.
Last year, the Bureau conducted a review of 25 colleges and universities with active credit card agreements finding that most did not make copies of these agreements on their websites and most failed to provide alternatives ways to access the agreements.
In response to these concerns, the Bureau has issued a bulletin reminding colleges and universities that they are required to publicly disclose marketing agreements with credit card companies. The bulletin outlines options for disclosing this information and warns that any such marketing agreements with credit card issuers must be disclosed publicly without delay.