Higher One May Be Fined for Bank Card Fees Charged to College Students

July 20, 2012, Written By Bill Hardekopf
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.

This entry was posted in Credit Card News and tagged bank card fees , college students , Higher One

The information contained within this article was accurate as of July 20, 2012. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.

About Bill Hardekopf

Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.
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