Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
CFPB advisory sparked by bank UDAP fine
WASHINGTON (8/13/11)--Students who receive loan money transferred to debit cards should be aware of certain rights and options they have, according to an advisory issued by the Consumer Financial Protection Bureau.

Among its key points, the advisory:

  • Notes that students cannot be required to use a specific bank or card and all federal loans must come with a paper check or cash option;
  • Recommends that a student choose a financial institution before arriving at school; and
  • Recommends a student sign up for direct deposit if offered.
The advisory was issued on Friday, two days after the Federal Deposit Insurance Corp.'s announcement that Higher One Holdings Inc. agreed to return about $11 million to college students for overcharging them for fees on its debit cards.

The bank is also paying a $110,000 civil fine and Bancorp Bank, which issued the OneAccount debit card administered by Higher One, is paying a $172,000 fine.

To see the advisory, use the resource link.
Other Resources

RSS print
News Now LiveWire
.@TheNCUA open board meeting starts at 10 a.m. ET tomorrow. It is board member J. Mark McWatters' first. Watch @NewsNowLiveWire
4 hours ago
.@CFPB is proposing to oversee larger nonbank auto finance companies for the first time at the federal level.
4 hours ago
.@CUNA's Bill Hampel moderates a discussion on the future of credit unions in the post-100 million member world. http://t.co/kcXykiRQVn
7 hours ago
#Breaking: QE likely to end next month, @federalreserve says #NewsNow #Market http://t.co/u7Fb5l5fwM
7 hours ago
.@Experian study confirms that building a credit history is beneficial to financial marginalized communities. 64M are "credit invisibles"
7 hours ago