House Financial Services Committee Chairman Jeb Hensarling (R-Texas) yesterday wrote to the Department of Education challenging its proposed rule that includes some provisions regulating campus bank accounts.
“I am concerned that the department’s proposal will impose significant regulatory requirements on financial accounts offered through partnerships between financial institutions and educational institutions,” he wrote. “Prudential bank regulators … already enforce a well-established banking regulatory structure… The addition of the proposed department regulations will thus lead to inconsistent and duplicative compliance regimes for financial institutions.”
Hensarling asked DoE to withdraw the proposal and — before issuing another proposal or finalizing a rule — consult with banking regulators and study the proposal’s impact on student access to financial services. ABA has argued that the proposal exceeds DoE’s statutory authority and would hinder student access to affordable financial products and services.