October 27, 2010
Banks spend big to sell credit cards to students
NEW YORK (CNNMoney) — In 2009, Bank of America unit FIA Card Services paid colleges and alumni associations $62 million for the rights to market cards to students and members, according to a report from the Federal Reserve. The second biggest spender, Chase, dropped $13.8 million to recruit new borrowers, while U.S. Bank forked over $2.5 million.
When the Credit Card Accountability and Responsibility and Disclosure Act — better known as the CARD Act — went into effect in February, it required credit card companies to disclose how much they pay colleges for the right to set up on campuses — plus how many new borrowers it racked up. On Monday, the Federal Reserve made its first report.
The full news article can be read here.Posted by: dolson