Credit unions that offer financial products in partnership withcollege campuses, such as ID cards that function as debit cards,will want to keep tabs on a new Consumer Financial ProtectionBureau inquiry into whether such arrangements are in the bestinterest of students.

The CFPB announced the new project Thursday and willcollect comments through March 18.

“We have seen many colleges establish relationships with financial institutions tooffer banking services to their students,” said CFPB DirectorRichard Cordray. “The bureau wants to find out whether studentsusing college-endorsed banking products are getting a gooddeal.”

The CARD Act restricted financial institutions from usingcertain types of marketing practices on college campuses and madeagreements between credit card issuers and institutions of highereducation subject to public disclosure.

The CFPB maintains an online database of college credit card agreements. The list isdominated by banks but does include some credit unions.

In a release, the CFPB said less is known about arrangementsregarding other products marketed to students such as studentidentification cards that double as debit cards, cards used toaccess scholarships and student loans, and school-affiliated bankaccounts.

The CFPB is asking the public, students, families, the highereducation community, and financial institutions to provide input ontheir experiences with these products. The Bureau is seeking inputon a variety of related issues including:

• What information schools share with financial institutions whenthey establish these relationships;
• How campus financial products are marketed to students;
• What fees students are being charged to use theseproducts;
• How schools set up marketing agreements with financialinstitutions; and
• Student experiences using campus financial products in theirday to day lives.

The comment request, along with information on how toelectronically submit comments, is located on the CFPB's website.

The inquiry may have been prompted by Congressional pressure. In June 2012, Sen. Dick Durbin (D-Ill.)and Rep. George Miller (D-Calif.) urged Cordray, EducationSecretary Arne Duncan and Department of Education Inspector GeneralKathleen Tighe to examine student debit card programs at more than 900 colleges anduniversities.