Higher One May Be Fined for Bank Card Fees Charged to College Students
The Associated Press is reporting that Higher One Holdings Inc. is preparing to pay a fine to federal regulators over fees the company charged to college students who used its bank cards between 2008 and 2011. The amount of the fine has not been finalized, according to two people with knowledge of the matter.
Higher One has exclusive deals with colleges and universities to market bank cards and checking accounts to college students on 520 campuses that enroll 4.3 million students. Consumer groups say students are pressured into signing up its products because the pitches are on university letterhead.
The company said it has already refunded $4.7 million in fees as of March 31.
Regulators are investigating Higher One for violations related to its compliance system and overdraft fees on accounts that were “seriously delinquent.” Higher One said in a regulatory filing that it is working with the FDIC’s investigation.