1. The Federal Reserve and the Federal Deposit Insurance Corp. (FDIC) are ordering Higher One, which provides financial services to college students, to pay restitution to customers for deceptive practices. The Fed is requiring $24 million to be returned to 570,000 students. The FDIC wants Higher One and partner WEX Bank to return $31 million to 900,000 customers. Along similar lines, The Bancorp Bank in Wilmington, DE has agreed to pay $4.3 million in charge brought by the FDIC that the prepaid card issuer deceived customers. Unfair, deceptive, abusive acts and practices (UDAAP) continues to be a hot issue with regulators. Let our former, Federal, compliance regulators review your institution’s UDAAP procedures and controls to assist in assuring you have a strong program in place to avoid serious penalties.
Dec 29
