[Updated 28 May, 2009: The Credit Card Act of 2009 (H.R. 627) has been signed into law, and includes disclosure requirements for alumni association affinity credit card contracts. The language, according to CASE, is identical to the language mentioned in my original post below, and requires credit card companies to disclose marketing agreements with alumni associations and affiliated foundations. The agreements covered are any of the agreements where a student has been issued a card, regardless of whether cards are marketed to students.
The disclosure requirement says that U.S. institutions of higher education must
publicly disclose any contract or other agreement made with a card issuer or creditor for the purpose of marketing a credit card.
While it doesn't mention alumni associations per se, the breadth of the language will likely make all or almost all marketing agreements subject to disclosure.
Thanks to CASE's Brain Flahaven for keeping us all updated.]
CASE's director of government and foundation relations, Brian Flahaven, recently circulated an update on legislation introduced by two US congressmen. According to Brian,
...the Student Credit Card Transparency Act of 2009...would require credit card companies to disclose to Congress their contracts, terms and agreements on affinity credit card programs with colleges, universities and alumni associations.
Although focused on schools marketing credit cards to students, the bill's broad language might require credit card companies to disclose all their agreements with colleges and universities.
If you're at a US alumni association with an affinity credit card program, how might this affect you? CASE believes that the legislation, if voted into law, might result in unintended, but negative, consequences.
Brian adds that it's unclear when Congress might take up the bill for discussion or vote. And the Senate is working on its own version of related legislation, and CASE will let us know if any language from the House bill mentioned above makes it into the Senate's final product.
Have an opinion or concern about the pros or cons of these proposed laws? Have anything to share about the changing role of alumni affinity agreements? Share your feedback in a comment.
CASE Legislative & Regulatory Affairs page
Also check out the CASE Issues Watch
Note that I'll be taking a break from blogging for a couple of weeks. See you late in May.
