FDIC Announces Settlement with WEX Bank and Higher One for Deceptive Practices Related to Debit Cards for College Students — 2015-12-23

Harmed consumers to receive approximately $31 million in restitution The Federal Deposit Insurance Corporation (FDIC) today announced settlements with WEX Bank, Midvale, Utah, and Higher One, Inc., New Haven, Conn., an institution- affiliated party of WEX Bank, for deceptive practices in violation of Section 5 of the Federal Trade Commission (FTC) Act. As part of the settlements, WEX Bank and Higher One have each stipulated to the issuance of a Consent Order, Order for Restitution, and Order to Pay Civil Money Penalty. The FDIC orders require Higher One to pay a civil money penalty of $2.23 million and WEX Bank to pay $1.75 million, and together to pay total restitution of approximately $31 million to an estimated 900,000 harmed consumers. Consumers who are eligible for relief under the settlements are not required to take any action to receive compensation.