Sen. Dick Durbin (D-Ill.) and two other congressmen have sent letters to 15 financial institutions and third-party financial providers that supply campus debit and prepaid cards to colleges and universities.
The financial institutions were asked to provide a list of all colleges and universities with which they provide debit or prepaid card services to students, along with copies of the contracts. They were also asked to provide a list of debit or prepaid card fees and the terms provided to students at each institution.
According to the release posted on the Web site of the National Association of College and University Business Officers, the three legislators “expressed concern about fees” associated with prepaid or debit cards provided to colleges. They called for the contracts to be made public.
The letter was written in response to a recently released report from the U.S. Public Interest Research Group that was heavily critical of prepaid or debit card programs provided to higher education institutions. Other signatories on the letter were Sen. Jack Reed (D-RI) and Rep. Peter Welch (D-Vermont).
The complete press release from the NACUBO Web site can be viewed here.