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Card companies have paid up to a tune of $1.18 million in the last year to about 44 of the Virginia Colleges, their alumni groups and affiliated groups in a bid to market the cards to both students as well as the alumni. In exchange the colleges had agreed to supply student information such as names, addresses, phone numbers and mail listings etc. Card companies also set up shop in the college campuses.
While there are differences in contracts, colleges and schools received money annually (in lump sum) for each account that was opened as well as each transaction that was made using the card. In some cases there were bonuses paid on the loan balances that were outstanding.
The details of the payment contracts were filed by the Fed Reserve in a report the previous week. As per this report more than around 1.044 agreements were reached all over the nation which had totaled up to around $83.46 million between the issuers as well as the educational institutions. The credit card act, 2009 required this report as the rules with respect to marketing to students had taken effect.
The list of colleges that received the payments from card companies are as follows:
- The College of William and Mary- a sum of $340,000 was received by the Alumni Association (this being the largest sum in the last year).
- The University of Richmond – a sum of $89,773 was received from the FIA Card Services (a subsidiary of the Bank of America).
- The Virginia Commonwealth University – a sum of $90,000 was received from FIA by the two alumni groups.
The colleges and universities stated that this was a revenue stream and that the institutions in turn used this amount to buy and install better software and other related expenses, which would again indirectly benefit the students. Bank of America has informed the University of Richmond that no student was solicited in the last couple of years. The contract with UR had expired in June and as per the contract the university had an obligation to provide the information on students, faculty, as well as the alumni. Linda Evans, University Spokesperson had stated that in the future agreements no student information would be included, however, students could apply for a UR affinity card in their own capacity. Executive Vice President of the William and Mary Alumni Association stated that this money was a source of revenue for them as the money was utilized for the students and associated events.
