U.S. government eyeing TCF Bank, Univeristy dealings

Nicolas Hallett

The U.S. Consumer Financial Protection Bureau is examining the link between American universities and big banks, including deals between the University of Minnesota and TCF Bank, according to an ABC News report released Thursday.

"Too often these deals aren't what's in the best interest of students," Rohit Chopra, who is in charge of the inquiry for the U.S. Consumer Financial Protection Bureau, told ABC News.

TCF Bank pays the University more than $1 million per year in exchange for its help in recruiting student customers. For every student who opens an account, TCF Bank gives the school a $34 bonus payment, according to the investigative report.

When students get their U Cards, TCF Bank employees encourage them to merge them with the bank’s debit card.

George Miller, the senior Democrat on the House Education and the Workforce Committee, said records show  85 percent of incoming freshmen at the University are signing up for TCF Bank accounts.

“While there may be some existing business arrangements across the country that negatively affect students, the U of M’s relationship with TCF Bank is not one of them,” the University said in a press release.