(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
Bureau.
(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 Bureau an annual report regarding those agreements
in the form and manner prescribed by the Bureau.
(2) Contents
of report. The annual report to the Bureau 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 paragraph (d)(3), a card issuer must submit its annual report
for each calendar year to the Bureau by the first business day on
or after March 31 of the following calendar year.
