Higher One Holdings Inc. has agreed to return about $11-million to 60,000 students who were overcharged for their debit cards, the Associated Press reports. Higher One, which markets the cards to students on hundreds of campuses, has faced accusations of abusive and deceptive management of students’ accounts, including charging fees to access financial-aid funds, allowing overdraft charges to pile up in accounts, and collecting multiple fees for single transactions.
Under the terms of an agreement with federal regulators, Higher One will also pay a $110,000 civil fine. Bancorp Bank, which issued the cards administered by Higher One, also was fined $172,000 fine. Neither company has admitted legal liability.
The news comes a day after Higher One announced it was expanding into the college-assessment business.