Bank Fined for Deceiving Students
CHICAGO (CN) - Chicago-based Cole Taylor Bank on Tuesday was fined $3.5 million and ordered to cease and desist deceiving college students through its agent, Higher One, of New Haven, Conn., the FTC said.
Higher One, which is not a bank, provides "services" through which college students can get their financial aid. Because Higher One is not a bank, it has to work with banks to offer its so-called OneAccount, a deposit and debit card account.
The FTC said in a statement that Higher One, under Cole Taylor's oversight, failed to provide information about how students could get a financial aid refund without opening a OneAccount; omitted material information about fees, features and limits of the OneAccount; omitted information about where and when students could get access to ATMs without charge; and displayed school logos, "which may have erroneously implied that the school endorsed the OneAccount product."