College students are often bombarded with financial products when they enter college. If you have ever signed up for a financial product at a college, you may have been charged higher fees than those on the open market.
Colleges and universities partner with financial institutions to provide financial products – including credits card and debit accounts to students. These products usually are not in the students’ best interest. The Consumer Financial Protection Bureau (CPFB) found that products offered to students through financial institutions partnership with schools are usually more costly to the students. These agreements result in students paying more for overdraft and monthly maintenance fees than they would in the open market.
The CFPB’s review found that some colleges and universities could delay financial aid if students did not choose a partnership accounts which is against Department of Education regulations. Colleges and universities are required to report compensation from financial institutions on their websites, and many of them fail to do so.
Attorneys at Finkelstein, Blankinship, Frei-Pearson & Garber, LLP have successfully represented consumers mislead by deceptive claims and are currently investigating this matter. If you or someone you know signed up for one of these financial products, contact us to discuss your legal options.