CFPB: Students being roped into CU/bank accounts marketed by colleges

Some colleges and universities are roping students into opening credit union or bank accounts that have unreasonable fees and penalties, the CFPB said, in a report released late last week.

And in some cases, those colleges and universities are failing to disclose that they are paid by the financial institutions for convincing students to open accounts, the bureau said.

“While colleges have substantial bargaining power to obtain superior terms and pricing for their students, we find that many college-sponsored financial products cost students more than accounts that are readily available on the open market,” CFPB Director Rohit Chopra said, in releasing the report.

He added, “Today’s report suggests that there is more work to do to ensure that students are not steered into school-endorsed products with junk fees.”

 

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