In its most recent annual report on college credit card agreements, the CFPB found payment and debit cards are replacing credit cards on college campuses—largely as a result of the 2009 CARD Act’s public disclosure requirements.  Since the act’s passage, credit card offers have declined 70 percent, and the number of agreements between issuers and institutions of higher learning has dropped 57 percent. Although the CARD Act’s public disclosure requirements are credit card-specific, the CFPB has encouraged schools and financial institutions to similarly disclose their payment and debit agreements, pointing to the supposed lack of consumer protections.

The increase in the use of GPR cards is a positive development for students who will benefit from their reduced cost and increased convenience. But, as expected, regulatory scrutiny has followed increased popularity.

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