Over at Conglomerate, Eric Gerding, a respected Professor of Corporate Law, apparently disapproves agreements between universities and credit card companies creating so-called affinity cards, whereby universities help companies market such cards to students and alumni, in return for a portion of the earnings that such cards produce. Gerding plainly does not like such arrangements, and he urges readers to examine a database created by the Federal Reserve that reports on the terms of such deals, including what payments universities have received, how many cards have been issued pursuant to such arrangements, and the identity of the card issuer. (For instance, a search of the database will reveal that the Duke University Alumni Association received $1.375 million from Chase Bank, USA N.A., that there are over 8,000 cards issued pursuant to the Duke/Chase Affinity program, and that 4 such cards were issued last year.) Congress required the Fed to create the database in the so-called Credit Card Accountability, Responsibility and Disclosure Act of 2009, and the Fed in turn required companies with these programs to turn over such information, without providing the companies with compensation for the time and effort spent complying with this request.
Here is the substance of Professor Gerding's critique:
Let me explain.