Higher One, the controversial college payment-card provider, will pay $11 million to settle allegations of deceptive and unfair fee practices.
Higher One Inc. will pay $11 million to up to 60,000 students under the agreement, the Federal Deposit Insurance Corp. announced last week. It will also pay a $110,000 penalty while its card issuer, The Bancorp Bank, will pay $172,000. In addition, Higher One agreed to halt misleading or deceptive marketing and improve compliance management.
Students who use its accounts sometimes pay fees to gain access to their financial aid money. The card has sparked protests on college campuses for its frequent 50-cent swipe fees, non-branded ATM use fees and overdraft charges.
Read more at OregonLive.com.