Lawmakers Ask CFPB to Examine Student Debit Cards


On June 7, Senator Richard Durbin (D-IL) and Representative George Miller (D-CA) sent letters to the CFPB and the Department of Education requesting that those agencies examine the practices associated with bank-affiliated student debit cards. The letters cite a recent U.S. PIRG report that identified “troubling practices” with these products, including alleged use of improper fees and misleading marketing. The lawmakers pose a series of questions to define the scope of the examination, including, for example (i) whether campus-based debit cards provide adequate consumer protections, (ii) whether the fees and penalties associated wit such cards violate federal law, and (iii) whether the contractual agreements between schools and financial institutions violate student privacy rights.


Published In: Administrative Agency Updates, General Business Updates, Consumer Protection Updates, Education Updates, Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BuckleySandler LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »