Higher One to return $11 million to students, settling FDIC charges of unfair and deceptive practices
A controversial college payment-card provider operating in Oregon has agreed to pay $11 million to settle allegations by federal regulators 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. Colleges contract with Higher One to distribute student financial aid payments. It largely distributes the money via a checking account and payment card called OneAccount, previously known as One Card.