Request for Information Regarding Financial Products Marketed to Students Enrolled in Institutions of Higher Education, 8114-8117 [2013-02428]
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Federal Register / Vol. 78, No. 24 / Tuesday, February 5, 2013 / Notices
of Integrated Mortgage Loan Disclosure
Forms’’— to:
• Agency: Bureau of Consumer
Financial Protection (Attention: Darrin
King, PRA Office), 1700 G Street NW.,
Washington, DC 20552; (202) 435–9575;
and CFPB_Public_PRA@cfpb.gov.
• OMB: Shagufta Ahmed, Office of
Management and Budget, New
Executive Office Building, Room 10235,
Washington, DC 20503; (202) 395–7873.
FOR FURTHER INFORMATION CONTACT:
Requests for additional information
should be directed to the Bureau of
Consumer Financial Protection
(Attention: PRA Office), 1700 G Street,
NW., Washington, DC 20552, (202) 435–
9575, or through the internet at
CFPB_Public_PRA@cfpb.gov.
SUPPLEMENTARY INFORMATION:
Title: Quantitative Testing of
Integrated Mortgage Loan Disclosure
Forms.
OMB Number: 3170–XXXX.
Type of Review: New Clearance
Request.
Abstract: This is a request by the
CFPB for clearance from OMB to collect
information as part of quantitative
research related to residential mortgage
loan disclosures. The Dodd-Frank Wall
Street Reform and Consumer Protection
Act, Public Law 111–203, Title X,
requires the CFPB to publish disclosures
that integrate separate disclosures
concerning residential mortgage loans
that are required under the Truth in
Lending Act (TILA) and Real Estate
Settlement Procedures Act (RESPA).
The Bureau conducted qualitative
testing of prototype integrated
disclosures, see OMB No. 1505–0233
and OMB No. 3170–0003, prior to
issuing a proposed rule regarding such
disclosures. See 77 FR 51116 (Aug. 23,
2012). The proposed information
collection will involve quantitative
testing of the integrated disclosures
proposed by the Bureau that would be
given in connection with the
application and consummation of the
mortgage loan transaction. The purpose
of the quantitative testing will be to
examine whether the disclosures aid
consumers in understanding the terms
of the mortgage loan that is the subject
of the disclosure.
The quantitative research will involve
testing the mortgage loan disclosures
currently provided under TILA and
sections 4 and 5 of RESPA, to assess the
performance of the proposed integrated
disclosures in comparison to the current
disclosure. The CFPB will collect
quantitative data through the use of a
structured questionnaire that consists of
multiple choice and open-ended
questions regarding several sample
disclosures. The quantitative data will
inform the Bureau’s evaluation of the
proposed integrated disclosures. The
research will result in an assessment of
the performance of the integrated
disclosures with respect to
comprehension, comparison, and choice
of mortgage loan transactions.
The research activities will be
conducted primarily by external
contractors employing quantitative
research methodologies. The contractors
will select participants via screening
questionnaires to ensure they qualify for
the study according to specified criteria.
All information will be collected on a
voluntary basis. This approach has been
demonstrated to be feasible and
valuable by other Federal agencies in
developing disclosures and other forms.
The planned research activities will be
conducted during FY 2013 through FY
2014 with the goal of creating effective
disclosures.
Affected Public: Individuals or
Households.
Estimated
number of respondents
Estimated average burden
per response
(minutes)
Total estimated burden
hours
Study Respondents .....................................................................................................................
Screening .....................................................................................................................................
Travel Time and Administration at Site .......................................................................................
850
3,000
900
60
10
80
850
500
1,200
Total: .....................................................................................................................................
........................
........................
2,550
tkelley on DSK3SPTVN1PROD with NOTICES
Process
An agency may not conduct or
sponsor, and a respondent is not
required to respond to, an information
collection unless the information
collection displays a currently valid
OMB control number.
The Bureau issued a 60-day Federal
Register notice on March 28, 2012, 77
FR 18793. Comments were solicited and
continue to be invited on: (a) Whether
the collection of information is
necessary for the proper performance of
the functions of the Bureau, including
whether the information shall have
practical utility; (b) the accuracy of the
Bureau’s estimate of the burden of the
collection of information, including the
validity of the methodology and the
assumptions used; (c) ways to enhance
the quality, utility, and clarity of the
information to be collected; and (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
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of automated, electronic, mechanical, or
other technological collection
techniques or other forms of information
technology.
Dated: January 29, 2013.
Chris Willey,
Chief Information Officer, Bureau of
Consumer Financial Protection.
[FR Doc. 2013–02427 Filed 2–4–13; 8:45 am]
BILLING CODE 4810–AM–P
BUREAU OF CONSUMER FINANCIAL
PROTECTION
[Docket No. CFPB–2013–0003]
Request for Information Regarding
Financial Products Marketed to
Students Enrolled in Institutions of
Higher Education
Bureau of Consumer Financial
Protection.
AGENCY:
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Notice and request for
information.
ACTION:
Section 1021 of the DoddFrank Wall Street Reform and Consumer
Protection Act of 2010 (Dodd-Frank Act)
charges the Consumer Financial
Protection Bureau (Bureau or CFPB)
with ‘‘collecting, researching,
monitoring and publishing information’’
about consumer financial products and
services. The Bureau seeks information
on how current and future partnerships
or other arrangements between
institutions of higher education
(including their affiliated entities) and
financial institutions could be
structured to promote positive financial
decision-making among young
consumers. We also seek information to
develop a clearer picture of the financial
products and services that are being
offered to college students, as well as
consumers’ experiences using those
products and services. The Bureau
SUMMARY:
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Federal Register / Vol. 78, No. 24 / Tuesday, February 5, 2013 / Notices
encourages comments from the public;
including student and parent
consumers, institutions of higher
education, and financial institutions.
DATES: Comments must be received on
or before March 18, 2013.
ADDRESSES: You may submit responsive
information and other comments,
identified by Docket No. CFPB–2013–
0003, by any of the following methods:
• Electronic: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Mail/Hand Delivery/Courier:
Monica Jackson, Office of the Executive
Secretary, Consumer Financial
Protection Bureau, 1700 G Street NW.,
Washington, DC 20552.
Instructions: The Bureau encourages
the early submission of comments. All
submissions must include the document
title and docket number. Because paper
mail in the Washington, DC area and at
the Bureau is subject to delay,
commenters are encouraged to submit
comments electronically. Please note
the number associated with any
question to which you are responding at
the top of each response (you are not
required to answer all questions to
receive consideration of your
comments). In general, all comments
received will be posted without change
to https://www.regulations.gov. Please do
not include personal information in
your comment that you do not wish to
be made publicly available. In addition,
comments will be available for public
inspection and copying at 1700 G Street
NW., Washington, DC 20552, on official
business days between the hours of 10
a.m. and 5 p.m. Eastern Standard Time.
You can make an appointment to
inspect the documents by telephoning
202–435–7275.
All submissions, including
attachments and other supporting
materials, will become part of the public
record and subject to public disclosure.
Sensitive personal information, such as
account numbers or Social Security
numbers, should not be included.
Submissions will not be edited to
remove any identifying or contact
information.
For
general inquiries, submission process
questions or any additional information,
please contact Monica Jackson, Office of
the Executive Secretary, at 202–435–
7275.
tkelley on DSK3SPTVN1PROD with NOTICES
FOR FURTHER INFORMATION CONTACT:
Authority: 12 U.S.C. 5511(c).
Section
1021 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act of
2010 (Dodd-Frank Act) charges the
Consumer Financial Protection Bureau
SUPPLEMENTARY INFORMATION:
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(Bureau or CFPB) with ‘‘collecting,
researching, monitoring and publishing
information’’ about consumer financial
products and services. The Bureau seeks
information on how current and future
partnerships or other arrangements
between institutions of higher education
(including their affiliated entities) and
financial institutions can be structured
to promote positive financial decisionmaking and building of money
management skills among young
consumers. We also seek information to
develop a clearer picture of the financial
products and services that are being
offered to college students, as well as
consumers’ experiences using those
products and services. The deadline for
submission of comments is March 18,
2013.
The Bureau encourages comments
from the public, including:
• Student and parent consumers;
• Institutions of higher education;
• Alumni associations;
• Providers of financial aid
disbursement services;
• Financial institutions; and
• Other interested parties.
The Bureau is interested in receiving
comments that could bear on its
analysis of the student financial product
and services market. The Bureau is
therefore interested in responses to the
questions outlined below.
Please note that the Bureau is not
soliciting individual student account
information in response to this notice
and request for information, nor is the
Bureau seeking personally identifiable
information (PII) regarding student
accounts from the parties or any third
party. Responses should not contain
account numbers, Social Security
numbers or other personal information
that could be used to reveal personally
identifiable information. Below are
some general areas for which
information is being sought. Please feel
free to respond to any or all of the
questions below:
(1) Products marketed through
campus affinity relationships.
Campus affinity products are
generally financial products and
services that carry an endorsement
(either explicit or implicit) or mark of an
institution of higher education.
Examples of these products include
those that that display the name or mark
of the institution, are bundled with
student identification cards, and cards
on which students can receive
disbursements of financial aid or other
funds from the institution of higher
education.
In the past, relationships between
financial institutions and institutions of
higher education have drawn scrutiny
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and led to legislative action. For
example, in 2007, former New York
Attorney General Andrew Cuomo
pursued action to address the steering of
students to certain lenders of federal
and private student loans in exchange
for remuneration. For years, institutions
of higher education provided access to
financial institutions to market credit
cards to students. Congress addressed
school preferred lender arrangements
and marketing of campus credit cards
on college campuses in legislation
enacted in 2008 and 2009.
However, institutions of higher
education may be uniquely positioned
to create a beneficial environment for
students in the selection of financial
products and services. The Bureau is
interested in better understanding the
types of campus affinity products being
offered, how institutions of higher
education are defining these
relationships, and the experience of
students using these products. The
Bureau seeks information on how
partnerships between institutions of
higher education (including their
affiliated entities) and financial
institutions might be structured to
promote positive financial decisionmaking among young consumers.
(a) What types of campus affinity
products are being offered to students
(e.g., financial aid disbursement
accounts, student banking, prepaid
cards, and credit cards)?
(b) What are the features of these
campus affinity products (e.g., online
bill pay, mobile check deposit)?
(c) In what ways are campus-affiliated
products marketed to students (e.g.,
included in campus admissions and/or
financial aid offer letters, orientation
materials, advertising at college sporting
events)?
(d) What information about students
is provided by institutions of higher
education to financial institutions (e.g.,
email address, date of birth, program of
study)?
(e) How are card or other products
offered to students (e.g., mandatory, optout, opt-in)? Does the student have a
choice to decline the product? If so,
what steps are required to exercise that
choice? Are there any consequences to
the student for declining the product?
(f) What percentage of students at a
college or university use the affinity
product (e.g., financial aid
disbursement, student checking
accounts)? What percentage of financial
aid recipients use the affinity product?
(g) To what extent are students able to
choose a product other than the affinity
banking product associated with the
institution of higher education? What
percentage of students do so?
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Federal Register / Vol. 78, No. 24 / Tuesday, February 5, 2013 / Notices
(h) What types of fees are being
charged in association with these
products (e.g., overdraft and/or swipe
fees)? What are the typical fee amounts?
What are the terms and conditions of
these products?
(i) To what extent are students able or
not able to readily access funds from
affinity products while on campus?
Does the financial institution provide
multiple ATMs? Where are those ATMs
located (e.g., on campus, near campus)?
Are ATMs also located on branch
campuses? Do ATMs charge fees for
withdrawal? If so, what are the fees and
how are they assessed?
(j) What is the nature, number, and
frequency of complaints related to these
campus affinity products? Please do not
include account numbers, Social
Security numbers or other personal
information that could be used to reveal
personally identifiable information.
(k) Please describe the student
experience in contacting the providers
of campus affinity products with
questions, errors, concerns, and
complaints. What level of service do
students receive? Have students been
treated in a fair, clear, and timely
manner? Please provide examples.
(l) What challenges do institutions of
higher education face when setting up
these agreements?
(m) What terms do institutions of
higher education agree to when they
affiliate with a financial institution to
offer students financial products and
services? Please feel free to submit
copies of any specific affinity
agreements. Please ensure that any
specific agreements do not contain any
personally identifiable information.
(n) What types of limitations, if any,
do these affinity agreements include
with respect to the fees that will be
charged to student users of the
products?
(o) What additional information
would have been helpful to the
institution of higher education before
setting up an affinity agreement?
(p) How much revenue do institutions
of higher education generally receive
annually in connection with these
agreements? How does that revenue
break down between student checking
accounts, credit cards and other
products and services? Is the revenue
based on a per student basis, by number
and/or volume of transactions by
students, level of student account
balances, fee revenue, or other
measures?
(q) Does an institution of higher
education save in operating costs or
generate revenue by contracting with a
financial aid disbursement vendor? If
so, in what amounts?
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(r) What are best practices or model
terms for institutions that are looking to
set up and/or renegotiate an agreement
with financial institutions to offer
products and services?
(s) What types of incentives do
affinity agreements offer institutions of
higher education?
(t) What types of incentives, if any, do
students receive for choosing an affinity
product?
(u) To what extent do institutions of
higher education solicit requests for
proposal for affinity agreements? What
are some examples of an institution’s
request for proposal?
(v) Do institutions of higher education
provide access to campus property to
financial institutions in order to market
products or provide workshops?
(w) To what extent are financial
products bundled with student ID
cards? What percentage of students
utilize these bundled financial products
(e.g., a student ID card that doubles as
a debit card, or closed-loop meal card
accepted by local business)? Are there
any charges or fees associated with the
use of the bundled financial product? If
yes, how are they assessed?
(x) To what extent are affinity
financial products also bundled with
financial education programs? What is
the utilization of these education
programs and how does it affect student
behavior?
(y) How do campus affinity products
compare with banking products
available to college students that are
offered by financial institutions not
affiliated with the institution of higher
education?
(2) Other financial products marketed
to students.
For many students, choosing a bank
account is one of their first significant
financial decisions, especially since the
first banking relationship may last long
after graduation. Students who
understand how banking products work
and when fees will be charged can save
hundreds of dollars in fees each year.
For example, according to a 2008 FDIC
report, while half of young Americans
manage to avoid overdraft fees, the other
half incurs approximately seven
overdrafts each per year.1
(a) What types of financial products
are tailored to the student consumer
segment?
(b) What factors do students and
parents consider when choosing
financial products tailored for students?
Which are the most important factors?
(c) What type of information is
helpful in making that decision?
1 FDIC, FDIC Study of Bank Overdraft Programs
November 2008, 79 (2008).
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(d) How do financial institutions
market these products to students and
parents? Do financial institutions
purchase enrollment information from
third parties? Do financial institutions
engage marketing consultants who
specialize in the student consumer
segment?
(e) What types of discounts and
benefits are offered to students who sign
up for a student banking account?
(f) What percentage of students sign
up for student banking from banks and
credit unions that are located on or in
close proximity to the campus?
(g) What types of issues/complaints
do students/parents have with these
accounts?
(h) On average, how much does a
student pay in fees per year?
(i) Which fees do students get charged
most often?
(j) What are the features of the
different types of financial products and
services that banks and credit unions
offer to students? Are these financial
products marketed as free checking for
students?
(k) What restrictions do consumers
need to satisfy in order to qualify for the
student banking product or services?
For example, does a student need to be
enrolled in school full time or attend a
particular institution? How is a
student’s status verified (e.g., student
ID, transcript, notice of enrollment)?
(l) Are the terms and conditions of
student banking products (including, for
example, amount and frequency of fees
or penalties) clearly disclosed, disclosed
in a timely manner, and easy to
understand? Have students had
difficulty understanding and/or
complying with these terms and
conditions? Please provide examples.
(m) What percentage of student
accounts have parents and/or family
members as co-signers or joint account
holders?
(n) To what extent do students use
general purpose reloadable cards? How
do institutions of higher education and
financial institutions market these cards
to students?
(o) How many students opt in to
overdraft coverage?
(p) Do students usually sign up for
their new account online or through a
live interaction?
(q) How many student account
holders do financial institutions serve?
(r) What percentage of students
maintain an account or relationship
with the financial institution after
graduation or separation from college?
After a student graduates or separates
from college how does their relationship
with their financial institution change
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Federal Register / Vol. 78, No. 24 / Tuesday, February 5, 2013 / Notices
(e.g., do they sign up for additional
products and services)?
Dated: January 30, 2013.
Garry Reeder,
Chief of Staff, Bureau of Consumer Financial
Protection.
[FR Doc. 2013–02428 Filed 2–4–13; 8:45 am]
CONSUMER PRODUCT SAFETY
COMMISSION
[CPSC Docket No. 13–C0003]
Whalen Furniture Manufacturing, Inc.,
d/b/a Bayside Furnishings, Provisional
Acceptance of a Settlement Agreement
and Order
Consumer Product Safety
Commission.
AGENCY:
Notice.
It is the policy of the
Commission to publish settlements
which it provisionally accepts under the
Consumer Product Safety Act in the
Federal Register in accordance with the
terms of 16 CFR 1118.20(e). Published
below is a provisionally-accepted
Settlement Agreement with Whalen
Furniture Manufacturing, Inc., d/b/a
Bayside Furnishings, containing a civil
penalty of $725,000.00, within twenty
(20) days of service of the Commission’s
final Order accepting the Settlement
Agreement.
SUMMARY:
Any interested person may ask
the Commission not to accept this
agreement or otherwise comment on its
contents by filing a written request with
the Office of the Secretary by February
20, 2013.
DATES:
Persons wishing to
comment on this Settlement Agreement
should send written comments to the
Comment 13–C0003, Office of the
Secretary, Consumer Product Safety
Commission, 4330 East West Highway,
Room 820, Bethesda, Maryland 20814–
4408.
ADDRESSES:
tkelley on DSK3SPTVN1PROD with NOTICES
FOR FURTHER INFORMATION CONTACT:
Mary B. Murphy, Assistant General
Counsel, Division of Compliance, Office
of the General Counsel, Consumer
Product Safety Commission, 4330 East
West Highway, Bethesda, Maryland
20814–4408; telephone (301) 504–7809.
The text of
the Agreement and Order appears
below.
SUPPLEMENTARY INFORMATION:
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17:18 Feb 04, 2013
Jkt 229001
UNITED STATES OF AMERICA
CONSUMER PRODUCT SAFETY
COMMISSION
In the Matter of: WHALEN FURNITURE
MANUFACTURING, INC. d/b/a Bayside
Furnishings
CPSC Docket No.: 13–C0003
BILLING CODE 4810–AM–P
ACTION:
Dated: January 31, 2013.
Todd A. Stevenson,
Secretary.
SETTLEMENT AGREEMENT
1. In accordance with 16 C.F.R.
§ 1118.20, Whalen Furniture
Manufacturing, Inc., d/b/a Bayside
Furnishings (‘‘Whalen’’), and the staff
(‘‘Staff’’) of the United States Consumer
Product Safety Commission
(‘‘Commission’’) hereby enter into this
Settlement Agreement (‘‘Agreement’’)
under the Consumer Product Safety Act,
15 U.S.C. §§ 2051–2089 (‘‘CPSA’’). The
Agreement and the incorporated
attached Order resolve the Staff’s
allegations set forth below.
THE PARTIES
2. The Staff is the staff of the
Consumer Product Safety Commission,
an independent federal regulatory
agency established pursuant to, and
responsible for, the enforcement of the
CPSA, 15 U.S.C. §§ 2051–2089.
3. Whalen is a corporation organized
and existing under the laws of the State
of California, with its principal
corporate office located at 1578 Air
Wing Road, San Diego, California,
92154.
STAFF ALLEGATIONS
4. Between January 2006 and April
2008, Whalen imported and distributed
into the United States approximately
7,739 juvenile beds in the shape of a
boat (‘‘Boat Beds’’) under the Bayside
Furnishings brand. The Boat Beds were
sold nationwide, for between $699.00
and $999.00.
5. The Boat Beds included toy chests
located as the ‘‘bow’’ of each unit with
a 20 pound lid that could be placed up
and remain in a fully opened or closed
position. The Boat Beds are ‘‘consumer
products’’ ‘‘distributed in commerce,’’
as those terms are defined or used in
sections 3(a)(5), (8) and (11) of the
CPSA, 15 U.S.C. § 2052(a)(5), (8) and
(11).
6. The Boat Beds are defective
because the toy chest lid hinge support
mechanism could fail during use,
allowing the lid to fall down rapidly.
This poses a serious trauma and
strangulation hazard and risk of death.
7. On November 2, 2007, Whalen
received a report that a toddler died
when a toy chest lid fell on his head,
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8117
trapping his neck and head inside the
toy chest.
8. Whalen obtained sufficient
information to reasonably support the
conclusion that the Boat Beds contained
a defect which could create a substantial
product hazard, or created an
unreasonable risk of serious injury or
death. Whalen failed to immediately
inform the Commission of such defect
or risk as required by sections 15(b)(3)
and (4) of the CPSA, 15 U.S.C.
§§ 2064(b)(3) and (4).
9. Despite having information
regarding the Boat Bed’s defect, Whalen
did not file its Full Report with the
Commission until March 20, 2008, after
the Staff directed Whalen to do so.
Whalen knowingly violated section
19(a)(4) of the CPSA, 15 U.S.C.
§ 2068(a)(4) as the term ‘‘knowingly’’ is
defined in section 20(d) of the CPSA, 15
U.S.C. § 2069(d).
10. Pursuant to section 20 of the
CPSA, 15 U.S.C. § 2069, Whalen is
subject to civil penalties for its knowing
failure to report as required under
section 15(b) of the CPSA, 15 U.S.C.
§ 2064(b).
RESPONSE OF WHALEN FURNITURE
MANUFACTURING COMPANY, INC.
11. Whalen denies the Staff’s
allegations, including but not limited to,
that the Boat Beds contained a defect
that could create a substantial product
hazard or create an unreasonable risk of
serious injury or death and that Whalen
failed to timely notify the Commission
in accordance with section 15(b) of the
CPSA, 15 U.S.C. § 2064(b).
12. Whalen believed that the report it
received did not represent a legitimate
incident. Whalen was aware of no prior
injuries involving the lid hinge. The
products were tested by a third-party
testing agency and passed toy chest
safety tests.
AGREEMENT OF THE PARTIES
13. Under the CPSA, the Commission
has jurisdiction over this matter and
over Whalen.
14. In settlement of the Staff’s
allegations, Whalen shall pay a civil
penalty in the amount of seven hundred
twenty-five thousand dollars
($725,000.00) within twenty (20)
calendar days of receiving service of the
Commission’s final Order accepting the
Agreement. The payment shall be made
electronically to the CPSC via
www.pay.gov.
15. The parties enter into this
Agreement for settlement purposes only.
Neither the Agreement, nor the fact of
entering into this Settlement Agreement,
constitutes the evidence of, or an
admission of, any fault, liability, or
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]]>Agencies
[Federal Register Volume 78, Number 24 (Tuesday, February 5, 2013)]
[Notices]
[Pages 8114-8117]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-02428]
-----------------------------------------------------------------------
BUREAU OF CONSUMER FINANCIAL PROTECTION
[Docket No. CFPB-2013-0003]
Request for Information Regarding Financial Products Marketed to
Students Enrolled in Institutions of Higher Education
AGENCY: Bureau of Consumer Financial Protection.
ACTION: Notice and request for information.
-----------------------------------------------------------------------
SUMMARY: Section 1021 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010 (Dodd-Frank Act) charges the Consumer Financial
Protection Bureau (Bureau or CFPB) with ``collecting, researching,
monitoring and publishing information'' about consumer financial
products and services. The Bureau seeks information on how current and
future partnerships or other arrangements between institutions of
higher education (including their affiliated entities) and financial
institutions could be structured to promote positive financial
decision-making among young consumers. We also seek information to
develop a clearer picture of the financial products and services that
are being offered to college students, as well as consumers'
experiences using those products and services. The Bureau
[[Page 8115]]
encourages comments from the public; including student and parent
consumers, institutions of higher education, and financial
institutions.
DATES: Comments must be received on or before March 18, 2013.
ADDRESSES: You may submit responsive information and other comments,
identified by Docket No. CFPB-2013-0003, by any of the following
methods:
Electronic: https://www.regulations.gov. Follow the
instructions for submitting comments.
Mail/Hand Delivery/Courier: Monica Jackson, Office of the
Executive Secretary, Consumer Financial Protection Bureau, 1700 G
Street NW., Washington, DC 20552.
Instructions: The Bureau encourages the early submission of
comments. All submissions must include the document title and docket
number. Because paper mail in the Washington, DC area and at the Bureau
is subject to delay, commenters are encouraged to submit comments
electronically. Please note the number associated with any question to
which you are responding at the top of each response (you are not
required to answer all questions to receive consideration of your
comments). In general, all comments received will be posted without
change to https://www.regulations.gov. Please do not include personal
information in your comment that you do not wish to be made publicly
available. In addition, comments will be available for public
inspection and copying at 1700 G Street NW., Washington, DC 20552, on
official business days between the hours of 10 a.m. and 5 p.m. Eastern
Standard Time. You can make an appointment to inspect the documents by
telephoning 202-435-7275.
All submissions, including attachments and other supporting
materials, will become part of the public record and subject to public
disclosure. Sensitive personal information, such as account numbers or
Social Security numbers, should not be included. Submissions will not
be edited to remove any identifying or contact information.
FOR FURTHER INFORMATION CONTACT: For general inquiries, submission
process questions or any additional information, please contact Monica
Jackson, Office of the Executive Secretary, at 202-435-7275.
Authority: 12 U.S.C. 5511(c).
SUPPLEMENTARY INFORMATION: Section 1021 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) charges the
Consumer Financial Protection Bureau (Bureau or CFPB) with
``collecting, researching, monitoring and publishing information''
about consumer financial products and services. The Bureau seeks
information on how current and future partnerships or other
arrangements between institutions of higher education (including their
affiliated entities) and financial institutions can be structured to
promote positive financial decision-making and building of money
management skills among young consumers. We also seek information to
develop a clearer picture of the financial products and services that
are being offered to college students, as well as consumers'
experiences using those products and services. The deadline for
submission of comments is March 18, 2013.
The Bureau encourages comments from the public, including:
Student and parent consumers;
Institutions of higher education;
Alumni associations;
Providers of financial aid disbursement services;
Financial institutions; and
Other interested parties.
The Bureau is interested in receiving comments that could bear on
its analysis of the student financial product and services market. The
Bureau is therefore interested in responses to the questions outlined
below.
Please note that the Bureau is not soliciting individual student
account information in response to this notice and request for
information, nor is the Bureau seeking personally identifiable
information (PII) regarding student accounts from the parties or any
third party. Responses should not contain account numbers, Social
Security numbers or other personal information that could be used to
reveal personally identifiable information. Below are some general
areas for which information is being sought. Please feel free to
respond to any or all of the questions below:
(1) Products marketed through campus affinity relationships.
Campus affinity products are generally financial products and
services that carry an endorsement (either explicit or implicit) or
mark of an institution of higher education. Examples of these products
include those that that display the name or mark of the institution,
are bundled with student identification cards, and cards on which
students can receive disbursements of financial aid or other funds from
the institution of higher education.
In the past, relationships between financial institutions and
institutions of higher education have drawn scrutiny and led to
legislative action. For example, in 2007, former New York Attorney
General Andrew Cuomo pursued action to address the steering of students
to certain lenders of federal and private student loans in exchange for
remuneration. For years, institutions of higher education provided
access to financial institutions to market credit cards to students.
Congress addressed school preferred lender arrangements and marketing
of campus credit cards on college campuses in legislation enacted in
2008 and 2009.
However, institutions of higher education may be uniquely
positioned to create a beneficial environment for students in the
selection of financial products and services. The Bureau is interested
in better understanding the types of campus affinity products being
offered, how institutions of higher education are defining these
relationships, and the experience of students using these products. The
Bureau seeks information on how partnerships between institutions of
higher education (including their affiliated entities) and financial
institutions might be structured to promote positive financial
decision-making among young consumers.
(a) What types of campus affinity products are being offered to
students (e.g., financial aid disbursement accounts, student banking,
prepaid cards, and credit cards)?
(b) What are the features of these campus affinity products (e.g.,
online bill pay, mobile check deposit)?
(c) In what ways are campus-affiliated products marketed to
students (e.g., included in campus admissions and/or financial aid
offer letters, orientation materials, advertising at college sporting
events)?
(d) What information about students is provided by institutions of
higher education to financial institutions (e.g., email address, date
of birth, program of study)?
(e) How are card or other products offered to students (e.g.,
mandatory, opt-out, opt-in)? Does the student have a choice to decline
the product? If so, what steps are required to exercise that choice?
Are there any consequences to the student for declining the product?
(f) What percentage of students at a college or university use the
affinity product (e.g., financial aid disbursement, student checking
accounts)? What percentage of financial aid recipients use the affinity
product?
(g) To what extent are students able to choose a product other than
the affinity banking product associated with the institution of higher
education? What percentage of students do so?
[[Page 8116]]
(h) What types of fees are being charged in association with these
products (e.g., overdraft and/or swipe fees)? What are the typical fee
amounts? What are the terms and conditions of these products?
(i) To what extent are students able or not able to readily access
funds from affinity products while on campus? Does the financial
institution provide multiple ATMs? Where are those ATMs located (e.g.,
on campus, near campus)? Are ATMs also located on branch campuses? Do
ATMs charge fees for withdrawal? If so, what are the fees and how are
they assessed?
(j) What is the nature, number, and frequency of complaints related
to these campus affinity products? Please do not include account
numbers, Social Security numbers or other personal information that
could be used to reveal personally identifiable information.
(k) Please describe the student experience in contacting the
providers of campus affinity products with questions, errors, concerns,
and complaints. What level of service do students receive? Have
students been treated in a fair, clear, and timely manner? Please
provide examples.
(l) What challenges do institutions of higher education face when
setting up these agreements?
(m) What terms do institutions of higher education agree to when
they affiliate with a financial institution to offer students financial
products and services? Please feel free to submit copies of any
specific affinity agreements. Please ensure that any specific
agreements do not contain any personally identifiable information.
(n) What types of limitations, if any, do these affinity agreements
include with respect to the fees that will be charged to student users
of the products?
(o) What additional information would have been helpful to the
institution of higher education before setting up an affinity
agreement?
(p) How much revenue do institutions of higher education generally
receive annually in connection with these agreements? How does that
revenue break down between student checking accounts, credit cards and
other products and services? Is the revenue based on a per student
basis, by number and/or volume of transactions by students, level of
student account balances, fee revenue, or other measures?
(q) Does an institution of higher education save in operating costs
or generate revenue by contracting with a financial aid disbursement
vendor? If so, in what amounts?
(r) What are best practices or model terms for institutions that
are looking to set up and/or renegotiate an agreement with financial
institutions to offer products and services?
(s) What types of incentives do affinity agreements offer
institutions of higher education?
(t) What types of incentives, if any, do students receive for
choosing an affinity product?
(u) To what extent do institutions of higher education solicit
requests for proposal for affinity agreements? What are some examples
of an institution's request for proposal?
(v) Do institutions of higher education provide access to campus
property to financial institutions in order to market products or
provide workshops?
(w) To what extent are financial products bundled with student ID
cards? What percentage of students utilize these bundled financial
products (e.g., a student ID card that doubles as a debit card, or
closed-loop meal card accepted by local business)? Are there any
charges or fees associated with the use of the bundled financial
product? If yes, how are they assessed?
(x) To what extent are affinity financial products also bundled
with financial education programs? What is the utilization of these
education programs and how does it affect student behavior?
(y) How do campus affinity products compare with banking products
available to college students that are offered by financial
institutions not affiliated with the institution of higher education?
(2) Other financial products marketed to students.
For many students, choosing a bank account is one of their first
significant financial decisions, especially since the first banking
relationship may last long after graduation. Students who understand
how banking products work and when fees will be charged can save
hundreds of dollars in fees each year. For example, according to a 2008
FDIC report, while half of young Americans manage to avoid overdraft
fees, the other half incurs approximately seven overdrafts each per
year.\1\
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\1\ FDIC, FDIC Study of Bank Overdraft Programs November 2008,
79 (2008).
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(a) What types of financial products are tailored to the student
consumer segment?
(b) What factors do students and parents consider when choosing
financial products tailored for students? Which are the most important
factors?
(c) What type of information is helpful in making that decision?
(d) How do financial institutions market these products to students
and parents? Do financial institutions purchase enrollment information
from third parties? Do financial institutions engage marketing
consultants who specialize in the student consumer segment?
(e) What types of discounts and benefits are offered to students
who sign up for a student banking account?
(f) What percentage of students sign up for student banking from
banks and credit unions that are located on or in close proximity to
the campus?
(g) What types of issues/complaints do students/parents have with
these accounts?
(h) On average, how much does a student pay in fees per year?
(i) Which fees do students get charged most often?
(j) What are the features of the different types of financial
products and services that banks and credit unions offer to students?
Are these financial products marketed as free checking for students?
(k) What restrictions do consumers need to satisfy in order to
qualify for the student banking product or services? For example, does
a student need to be enrolled in school full time or attend a
particular institution? How is a student's status verified (e.g.,
student ID, transcript, notice of enrollment)?
(l) Are the terms and conditions of student banking products
(including, for example, amount and frequency of fees or penalties)
clearly disclosed, disclosed in a timely manner, and easy to
understand? Have students had difficulty understanding and/or complying
with these terms and conditions? Please provide examples.
(m) What percentage of student accounts have parents and/or family
members as co-signers or joint account holders?
(n) To what extent do students use general purpose reloadable
cards? How do institutions of higher education and financial
institutions market these cards to students?
(o) How many students opt in to overdraft coverage?
(p) Do students usually sign up for their new account online or
through a live interaction?
(q) How many student account holders do financial institutions
serve?
(r) What percentage of students maintain an account or relationship
with the financial institution after graduation or separation from
college? After a student graduates or separates from college how does
their relationship with their financial institution change
[[Page 8117]]
(e.g., do they sign up for additional products and services)?
Dated: January 30, 2013.
Garry Reeder,
Chief of Staff, Bureau of Consumer Financial Protection.
[FR Doc. 2013-02428 Filed 2-4-13; 8:45 am]
BILLING CODE 4810-AM-P
