In a widely anticipated move, the FDIC charged Higher One and its former partner, The Bancorp Bank, with unfair and deceptive practices regarding the fees charged to students for debit card overdrafts and account services. Higher One already had begun the process of refunding accountholders in December last year, returning almost $5 million to date. The Bancorp Bank in May ended their relationship with the company. The FDIC’s action underscores the more aggressive stance regulators have been taking of late to protect consumers from excessive payment card fees and, hopefully, will put to rest some of the critics of these kinds of programs, which can and do offer sound value to consumers and educational institutions.
From Fox Business News:
Under a consent order with the FDIC, Higher One must abstain from charging “nonsufficient fund” fees on accounts that have had a negative balance for more than 60 days and charging more than three such fees on a single day per account, among other things.
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