CBA Concerned about CFPB’s Campus Products Allegations
September 2, 2014
The Consumer Bankers Association took issue with letters CFPB Student Loan Ombudsman Rohit Chopra recently sent to financial institutions that have contractual relationships with colleges and universities, calling for public disclosure of their campus marketing agreements. Chopra’s letter stated the institutions’ failure to be transparent about the terms of these proprietary agreements “may pose potential consumer protection risks.” However, CBA President and CEO Richard Hunt said Chopra did not provide any basis for or evidence to support these provocative claims. “On the contrary, relationships between banks and schools often provide students with great benefits by providing much needed financial literacy, safe and secure debit cards, low or no-fee checking accounts and access to convenient on-campus branches and ATMs; and students ...