Associated Press
09-26-07
Schools' credit card deals draw concern
Bolkcom calling for limits; Regents to seek information
By The Associated Press
DES MOINES -- An Iowa City legislator called for restrictions on credit card
marketing to students at Iowa's public universities, and the head of the state
Board of Regents said the group may seek more information about confidential
deals with alumni organizations.
Sen. Joe Bolkcom, a Democrat, said he was concerned by deals between Bank
of America and alumni associations at the University of Iowa and Iowa State
University. And Board of Regents President Michael Gartner said board staff
could look into the matter as a result of media reports and questions from
legislators.
The issue arose after The Des Moines Register reported that the two universities
are marketing credit cards to students as part of agreements that generate
millions of dollars for the schools' alumni organizations.
Bolkcom said he would propose changes in law or policy to ban on-campus
marketing by credit card companies that includes giveaways to entice students to
sign up. He also would consider pushing for changes to public disclosure rules
that now allow alumni groups to keep secret their contracts with Bank of America.
A student committee plans to lobby for some of Bolkcom's proposed changes,
said Matthew Pfaltzgraf, the government relations liaison for University of Iowa
Student Government.
"We also want to address the shadowy relationships universities have with
financial institutions like credit card and student loan companies," Pfaltzgraf said.
Asked to respond to such proposals, University of Iowa spokeswoman Linda
Kettner said the school has discussed the matter with its General Assembly and
student leaders and would continue to do so.
The Board of Regents, which oversees Iowa's three public universities, hasn't
been involved in credit card marketing agreements and doesn't have information
about the deals, but the board might seek details, Gartner said.
"If the press and legislators are raising issues about this, I suspect the board staff
should try to determine as many facts as possible to brief the board," Gartner
said.
According to state records, the University of Iowa allows the set-up of tables on
campus, where students are encouraged to sign up for Bank of America credit
cards. The school is paid $50 for every application it secures for Bank of
America.
The University of Northern Iowa Alumni Association also has refused to release
its contract with Bank of America but Mark Jastorff, the group's president, said
the association hasn't endorsed solicitations of students in the past six months.
Iowa State University has released the contract between its alumni
association and Bank of America.