Friday, August 8, 2014

No Disclosure Between CUs Partenering with Big Ten Universities

In a recent blog post by the Consumer Financial Protection Bureau (CFPB) looking at financial institutions that have partnered with Big Ten universities, the CFPB wrote it could not find any contracts between two universities and the credit unions that are the university's financial partner.

As background, on December 13, 2013, CFPB Director Cordray alerted financial institutions about the potentially risky practice of making secret payments to colleges and universities to market deposit accounts, prepaid cards, debit cards, and other financial products to students. He called on financial institutions to voluntarily make these agreements available on their websites.

The two universities and their credit union partners are:
  • Michigan State University and MSU Federal Credit Union: and
  • University of Wisconsin and UW Credit Union.
The CFPB wrote that it is sending alerts to schools to make sure they know that their financial partners are not committed to transparency when it comes to student financial products.

Editorial Note: This post has been updated to reflect corrections made by the CFPB to its earlier blog post.

Read the blog post.
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4 comments:

  1. AnonymousAugust 8, 2014 at 11:22 AM

    You failed to mention the 5 universities and their bank partners also referenced in the CFPB's blog post, so I'll do it for you. University of Maryland and Capital One, University of Nebraska and Well Fargo Bank, Northwestern University and US Bank, Ohio State University and Huntington Bank and Penn State University and PNC Bank.

    ReplyDelete
  2. AnonymousAugust 8, 2014 at 11:54 AM

    CFPB amended the post to say that Purdue and Indiana do not have agreements with credit unions. I call upon the good Dr. Leggett to adjust his posting to reflect the CFPB change.

    ReplyDelete
  3. AnonymousAugust 8, 2014 at 2:02 PM

    It's outrageous that CFPB and you would call out and embarrass credit unions and universities at all, let alone find out later two of them were innocent. Our democracy is over when we're guilty until proven innocent. And isn't it strange that Big Ten schools were being targeted. Thanks for bursting one more balloon into ruining our society. By the way, is Mars Hill College guilty of anything?

    ReplyDelete

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