Federal Agency Examining Relationship Between Big Ten Schools, Banks

A federal agency is asking banks affiliated with Big Ten universities to disclose how much they pay to access students for marketing products like checking accounts and debit cards.

The U.S. Consumer Financial Protection Bureau wants banks associated with Big Ten schools to publicly disclose contracts. The watchdog group is concerned that schools are getting paid to provide easy access to students.

A law passed in 2009 requires banks to publish marketing contract details related to credit cards and private loans for students, but not checking accounts or debit cards, which has concerned some bureau officials.

The law was a response to reports that schools and administrators were getting kickbacks for promoting deceptive and expensive credit cards and loans to students.

Of the 14 Big Ten schools, the bureau identified 11 with established banking partners that could market financial products to students. The University of Wisconsin partner is the UW Credit Union.

“While the contract has not yet been published online, we feel that all parties involved support transparency,” said Lisa Girdharry, the senior vice president and chief marketing officer at the credit union. “The CFPB and the Department of Education have not yet issued rules requiring that contracts be posted online, and the majority of financials and universities are likely waiting on further direction from the Department of Education.”

In response to WPR requests, UW officials said that they can’t find any letter from the Financial Protection Bureau. They said the UW includes information about their partnership with the credit union on its website and have provided detailed information about relationships the university has with financial institutions to student government.