Last month, it was revealed that the number of agreements between credit card companies and colleges or associated groups had declined over the last year, and now experts say that transparency is the reason.
An aspect of the Credit Card Accountability, Responsibility and Disclosure Act states that credit card agreements for colleges or alumni groups – which were long used to generate revenues – must be revealed to the federal government, according to a report from UPI News. As a result, some of these organizations may have been discouraged from continuing these arrangements.
Recently, the University of Illinois Alumni Association pulled out of a $3.3 million deal with Bank of America and opted instead to sign on with a local credit union, the report said.
However, more stringent rules about how those under the age of 21 are able to acquire credit cards of their own may have had something to do with the change as well. Now, those who are under that age must provide either proof that they can afford to make their payments or have an adult cosigner on the account.