The U.S. Consumer Financial Protection Bureau, in a new report, said the number of new accounts opened through colleges, alumni groups and foundations dropped 7 percent to 43,010 in 2011.
the 2009 Credit Card Accountability Responsibility & Disclosure Act restricts card issuers from formerly common practices including exchanging t-shirts and free gifts for credit applications from students on campus. The CARD act also requires credit-card issuers to annually disclose the agreements.
The agreements are important sources of revenue for colleges. Penn State Alumni Association got $2.7 million from FIA, the former MBNA unit now owned Bank of America unit. Other million-dollar-plus recipients include the Alumni Association of the University of Michigan; the General Alumni Association of the University of North Carolina at Chapel Hill; the University of Georgia Foundation; the University of Southern California; the University of Tennessee; the California Alumni Association; the University of Arizona Alumni Association.
The Association of Former Students of Texas A&M University and Yale University each got more than $1.1 million.