Card act requires full disclosure - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Card act requires full disclosure

Card act requires full disclosure

Card act requires full disclosure

US PIRG consumer program director Ed Mierzwinski recently applauded the CARD Act’s requirement of full disclosure by credit card companies in relation to how much they pay colleges and universities to gain access to their markets.


Mierzwinski says that amount given by the credit card industry had long been kept secret from the public. The money given by credit card companies is usually coursed through different organizations like those of the alumni, student bodies, fraternities and sororities.


He adds that colleges and universities have also refused to make the information about the amount given to them by the credit card industry public. Mierzwinski says that this is in observance of contracts that stipulate confidentiality and competitive advantages.


With the CARD Act requirement, Mierzwinski identifies a report by the Federal Reserve which is a first of its kind. The Report on College Credit Card Agreements is part of the ways by which the government aims to address issues in the credit card industry which targets the market of 21 year olds and below in the education sector.


According to Mierzwinski, the Federal Reserve’s report reveals that for the year 2009, there were 1,044 agreements between credit card companies and the different colleges, universities, and organizations. The agreement gives the credit card companies access the market in the education sector. In those 1,044 agreements, a total of $83.5 million have been made as payment by the credit card issuers.


As a result, the companies which made the payment have seen credit card accounts opening by the end of 2009. The figure is at a total 53,164 by the end of October or by the same period last year.


Mierzwinski then emphasizes the need for transparency in the matter given that the experience of the past would show the importance of regular quantitative reports for more meaningful legislation.


He says that confidentiality in the information about the amount given by the credit card industry to the colleges, universities, and organizations have stalled public policy creation due to the inadequacy of records. The lack of records also precluded the determination of possible applicable laws in relation to the markets and the credit card industry.


With other relevant information such as the inclusion of the major or dominant banks accounting for 96 percent of all the agreements, Mierzwinski says that the government can be better equipped with the ways by which they can take action.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

MasterCard and Fred Segal Open Shop on the Strip

Posted: April 20, 2018

MasterCard and Fred Segal have opened Rock ‘n Roll Holy Land on Sunset Strip, an immersive exhibit giving people an insider’s view of the history of the Sunset Strip. The shop also puts a unique digital spin on window shopping using ... Continue reading
New Amex Centurion Lounge Opening in Denver

Posted: April 19, 2018

Are you a regular at Denver International Airport (DEN)? If so, you may want to check out the new Centurion Lounge when it opens next year. It’s stated to be the eleventh lounge in the Centurion line up. Offering airfield views and taking ... Continue reading
Crate and Barrel and Synchrony Bank to Offer New Credit Cards

Posted: April 18, 2018

Do you shop for furniture and household wares at Crate and Barrel? If so, you might be interested to know that the home furnishings retailer has inked a deal with Synchrony to offer customers not only new credit cards and financing ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!