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The FDIC on Aug. 8 announced settlements with New Haven, Conn.-based Higher One Holdings Inc. and Wilmington, Del.-based Bancorp Inc. unit Bancorp Bank for alleged unfair and deceptive practices in violation of Section 5 of the Federal Trade Commission Act.
Higher One is an institution-affiliated party of Bancorp Bank.
Under the settlements, both Higher One and Bancorp Bank agreed to consent orders and Higher One agreed to provide restitution of $11 million to approximately 60,000 students.
In addition, the FDIC imposed civil money penalties of $110,000 for Higher One and $172,000 for Bancorp Bank.
Among other things, the FDIC found that Higher One and Bancorp Bank were charging student account holders multiple nonsufficient...