U.S. Sen. Dick Durbin (D-Ill.) and U.S. Rep. George Miller(D-Calif.) expressed their concern this week over debit cardagreements between financial institutions anduniversities.
|The two sent letters on Thursday to Education Secretary ArneDuncan, Department of Education Inspector General Kathleen Tigheand Consumer Financial Protection Bureau Director Richard Cordray, urging them to carefully examinebank-affiliated student debit card practices at more than 900 colleges anduniversities.
|The letters were prompted by a report released last week fromthe U.S. Public Interest Research Group Education Fund. Accordingto the report, more than 9 million students are potentially subjectto numerous fees as a result of agreements between their college oruniversity and a financial institution.
|“At a time when total U.S. student loan debt is reaching the $1trillion mark, we should not allow costly and inappropriate debitcard fees to add to that debt,” Durbin and Miller wrote.
|The report listed four credit unions among the financialorganizations that have agreements with the nation's largestfour-year public universities: the $728 million Indiana UniversityCredit Union in Bloomington, Ind., the $1.5 billion University ofWisconsin Credit Union in Madison, Wis., the $802 million UtahCommunity Credit Union in Provo, Utah, and the $1.2 billionElevations Credit Union in Boulder, Colo.
|Some of the fees highlighted by the report include PIN debitfees, balance inquiry fees, inactive account fees, account closurefees and reloading fees.
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