Consumer Warning Network finds FSU Profits over Student Credit Card Debt

At the same time Florida State University is warning students to avoid the "Credit Card Monster" (see video below) the university is funneling their names and addresses to credit card giant Bank of America. The bank then uses that information to market credit cards to those very same students, as part of an "exclusive" deal allowing the bank to use FSU's official colors and symbols. 

Consumer Warning Network obtained a copy of the contract between the Seminole Boosters, FSU's athletic fund raising arm, and Bank of America. The deal, which FSU endorsed in a side letter, was supposed to remain confidential.

Under the secret terms of the agreement, FSU pockets a piece of every dollar charged by students and alumni, with a guarantee of more than $10 million over 7 years. That money goes directly to the private Seminole Boosters which among other things helps pay the multi-million dollar salaries of coaches like Bobby Bowden.

The card marketed to students by Bank of America has less favorable terms, like higher interest rates, than its non-student credit cards. MORE