Des Moines Register
10-18-07
ISU opposes credit pitches
By CLARK KAUFFMAN
REGISTER STAFF WRITER
Efforts are under way at Iowa State University to end the school-sanctioned
credit card marketing aimed at ISU students, university President Gregory
Geoffroy said.
He said that while he didn't believe Bank of America was aggressive in marketing
its credit cards to ISU students, he would like to see a new contract with the bank
that prohibits solicitations aimed at students.
"I have told the alumni association that I would rather that credit cards not be
marketed directly to students," he said.
"The alumni association is now working with the Bank of America to explore
changes to that contract, and they're looking at every area, including the
marketing to students."
Bank of America, one of the nation's largest credit card companies, has
marketing agreements with the alumni associations at Iowa State University, the
University of Iowa and the University of Northern Iowa. Those agreements
provide the associations with tens of thousands of dollars in revenue annually in
return for the bank's access to names and addresses of people with ties to the
schools - including current students, their parents, graduates and sometimes
purchasers of tickets to athletic events.
The marketing agreements have come under scrutiny by the Iowa Board of
Regents, student leaders and state lawmakers. Nationally, similar schoolsanctioned marketing of credit cards has sparked protests from members of
Congress and consumer advocates.
Geoffroy said that while he didn't want the ISU credit card marketed to students,
he supported the program in general.
"The credit card program is designed for the alumni and, I would argue, the
friends of the university - not students," he said.
"I carry that credit card in my wallet. I use it all the time. It's the only one I use. I
love it. Every time I pull out that card it flashes 'Iowa State,' and so, basically,
every time I use it I am advertising the university."
Geoffroy said he didn't think parents or students objected to the university's
dealings with Bank of America.
"Whenever there are issues that appear in the media that sort of grab people's
attention and hit a hot button, I usually hear about them," he said.
"I get lots of e-mails and communications and letters. But I have received a grand
total of one two-sentence letter on this topic. And the students on campus do not
appear to have any real serious issue with it."
Iowa State and the ISU Alumni Association have contracts with Bank of America
that enable the bank to use controversial giveaways of ISU clothing and
bobblehead dolls to encourage students and others to sign up for a Cyclonesbranded credit card.
The privately run alumni group collects about $500,000 annually from the
arrangement, while the school itself receives about $40,000 annually.
Under the terms of the ISU marketing agreements, all of the university's share of
the revenue from the credit card program goes to the ISU athletic department.
Geoffroy said he wasn't sure whether other, higher-ranking school officials
outside the athletic department had any say as to which department would claim
the university's share of the credit card revenue.
"The only part of the university that, to my knowledge, has entered into any
arrangement with the alumni association related to this contract is the
Department of Athletics," he said. "The rest of the university has not."
Steve Parrott, a spokesman for the University of Iowa, said the Iowa City school
is now talking to officials of its alumni association about possible changes in their
marketing agreement with Bank of America.
No decisions have been made, he said.
Chris Bavolack, a vice president of the U of I Alumni Association, said the
association had yet to ask Bank of America for changes in the contract, "but we
are sensitive to these issues, and all options are being considered."
The U of I alumni group receives about $1 million in annual revenue from its
agreement with Bank of America. About $200,000 of that money is passed on to
the school.
At the University of Northern Iowa, alumni association officials have refused to
say how much the group collects from Bank of America.
The bank has not solicited UNI students during the past five months, school
officials said.