(a) Definitions:
(1) College student
credit card. The term “college student credit card” as used in
this section means a credit card issued under a credit card account
under an open-end (not home-secured) consumer credit plan to any college
student.
(2) College student. The term “college student”
as used in this section means a consumer who is a full-time or part-time
student of an institution of higher education.
(3) Institution
of higher education. The term “institution of higher education”
as used in this section has the same meaning as in sections 101 and
102 of the Higher Education Act of 1965 (20 U.S.C. 1001 and 1002).
(4) Affiliated organization. The term “affiliated
organization” as used in this section means an alumni organization
or foundation affiliated with or related to an institution of higher
education.
(5) College credit card agreement. The term
“college credit card agreement” as used in this section means any
business, marketing or promotional agreement between a card issuer
and an institution of higher education or an affiliated organization
in connection with which college student credit cards are issued to
college students currently enrolled at that institution.
(b) Public disclosure of
agreements. An institution of higher education shall publicly
disclose any contract or other agreement made with a card issuer or
creditor for the purpose of marketing a credit card.
(c) Prohibited inducements. No card
issuer or creditor may offer a college student any tangible item to
induce such student to apply for or open an open-end consumer credit
plan offered by such card issuer or creditor, if such offer is made:
(1) On the campus of an institution of
higher education;
(2)
Near the campus of an institution of higher education; or
(3) At an event sponsored
by or related to an institution of higher education.
(d) Annual report to the
Board.
(1) Requirement to report. Any card issuer
that was a party to one or more college credit card agreements in
effect at any time during a calendar year must submit to the Board
an annual report regarding those agreements in the form and manner
prescribed by the Board.
(2) Contents of report. The annual
report to the Board must include the following:
(i) Identifying
information about the card issuer and the agreements submitted, including
the issuer’s name, address, and identifying number (such as an RSSD
ID number or tax identification number);
(ii) A copy of any college credit card
agreement to which the card issuer was a party that was in effect
at any time during the period covered by the report;
(iii) A copy of any memorandum of understanding
in effect at any time during the period covered by the report between
the card issuer and an institution of higher education or affiliated
organization that directly or indirectly relates to the college credit
card agreement or that controls or directs any obligations or distribution
of benefits between any such entities;
(iv) The total dollar amount of any
payments pursuant to a college credit card agreement from the card
issuer to an institution of higher education or affiliated organization
during the period covered by the report, and the method or formula
used to determine such amounts;
(v) The total number of credit card
accounts opened pursuant to any college credit card agreement during
the period covered by the report; and
(vi) The total number of credit card
accounts opened pursuant to any such agreement that were open at the
end of the period covered by the report.
(3) Timing of reports. Except for the initial report described in
this Section 226.57(d)(3), a card issuer must submit its annual
report for each calendar year to the Board by the first business day
on or after March 31 of the following calendar year. Card issuers
must submit the first report following the effective date of this
section, providing information for the 2009 calendar year, to the
Board by February 22, 2010.
