![]() ![]() The company will also pay a $110,000 civil penalty to the FDIC, while Bancorp will pay a $172,000 penalty. Higher One is also prohibited from charging more than three such fees to an account on any given day. In addition to refunding students $11 million in improperly assessed fees, Higher One also signed a consent order with the FDIC that it will no longer charge insufficient fund fees on accounts that have maintained a negative balance for more than 60 days. “Higher One then proceeds to assess and collect deceptive, unusual, unconscionable and, in many cases, unavoidable bank fees in these ‘captive’ banking accounts,” the class action lawsuit states. According to the class action lawsuit, Higher One “uses three tactics to make sure that students do not opt out of this default: first, it bombards students with unsolicited and deceptive marketing materials second, it intentionally delays access to financial aid funds for students who choose to use other banking providers third, it conceals the true costs of the Higher One accounts.” The $5 million Higher One class action lawsuit alleges the company “improperly coerced” students into its accounts through a system that requires them to “opt out” of accounts the company opens without the students’ knowledge or consent. Higher One is also facing a class action lawsuit over the fees that was filed in July 2012 by seven students in five states.
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