CFPB forum: CUs serve college students well
Oct. 1, 2013 – Credit unions serve their college student members well and keep their best interests in mind when extending services to them, said a credit union representative during a CFPB forum Monday that focused on financial products and services marketed to college students.
Earlier this year, the CFPB set out to understand how colleges and universities structure marketing partnerships with financial institutions. Monday’s Banking on Campus Forum included representatives from the Department of Education, Treasury, FDIC, the Federal Reserve, various financial institutions and college students to further the bureau’s understanding on this subject.
“The Consumer Bureau wants to help the American people to navigate the consumer financial marketplace more effectively,” CFPB Director Richard Cordray said in his remarks during the forum. “And I am concerned that some of our colleges and universities, whether well-intentioned or not, may be encouraging or even requiring our young people to use financial products that do not offer the best deals.”
University of Wisconsin CU Senior Vice President and Chief Member Solutions Officer Rob Van Nevel discussed the positive impact a credit union can have on student members. The credit union has more than 20,000 enrolled student members and has branch locations on seven college campuses, he said during the forum. It charges no ATM fees and allows student members to link debit services to their student identification cards. “UW Credit Union always keeps students’ best interests in mind,” Van Nevel said. “Our service philosophy supports an opt-in model that benefits all consumers.”
NAFCU Regulatory Affairs Counsel PJ Hoffman attended the forum. “While the CFPB continues to explore financial products and services marketed to college students we will continue to remind the bureau that because credit unions are member-owned and -run institutions, those that serve college students serve them responsibly and with their long-term interests’ in mind,” he said.
In March, NAFCU submitted a comment letter to the CFPB explaining credit unions’ offerings of member-tailored products, financial resources and responsible financial education for college-aged members.
comment letter regarding financial products marketed to college students