WASHINGTON - Federal regulators say Higher One Inc. has agreed to return about $11 million to college students for overcharging them for fees on debit cards and other practices.
The Federal Deposit Insurance Corp. said Wednesday the settlement with Higher One, which also is paying a $110,000 civil fine and agreed to change the way it imposes fees. In addition, the FDIC said that Bancorp Bank, which issued the OneAccount debit card administered by Higher One, is paying a $172,000 fine.
New Haven, Conn.-based Higher One violated federal law by charging students multiple fees for overdrawing funds for a single transaction, the FDIC said. The company also allowed debit accounts to remain in overdrawn status for long periods as overdraft funds piled up, and engaged in other deceptive practices, the agency said.