12.17.13

Miller Urges Banks to Comply with CFPB Request, Disclose Secret Campus Banking Contracts

WASHINGTON--Rep. George Miller (D-Calif.) today released the following statement in response to a call from the federal Consumer Financial Protection Bureau to American financial institutions, which asked for public disclosure of all contracts with colleges and universities that allow the banks to aggressively promote debit cards to students:

“I join the Consumer Financial Protection Bureau’s call to banks to disclose their campus banking contracts. Investigations by the media and federal agencies have already uncovered a shocking number of perks and pay-outs to campuses that agree to promote fee-laden debit cards that leave students mired in debt. Student loan debt has already surpassed $1 trillion, and deceptive, predatory practices like these siphon financial aid dollars away from hard-working students and ultimately make college more expensive. 

“This is not the first time that financial institutions have targeted students on campus. My colleagues and I legislated to put an end to banking practices that targeted students with expensive loans and credit cards. Unfortunately, financial institutions have not learned from their past transgressions and continue to offer colleges lucrative financial incentives to hand over the keys to the campus.

“The Bureau’s action today takes a step toward fixing current campus banking rules so that financial institutions can’t take advantage of students. However, the Consumer Financial Protection Bureau and the Department of Education must do more to protect students and taxpayers and regulate the risky behavior of these banks.”