Some UND students have the opportunity to collect on a $15 million settlement with the bank card company used by the university.
The company Higher One provides students with a card that holds extra money from financial aid and loans. Known on campus as the Pride Card, it is supposed to act like a debit card, but the catch is that the company charges $20 for replacement cards and 50 cents per transaction when the card is used as debit rather than credit, among other fees.
Due to inaccurate marketing practices and nondisclosure of fees, the company reached a settlement that UND students can collect on if they were ever charged any account fees and activated an account between July 1, 2006, and Aug. 2, 2012.
ADVERTISEMENT
UND has used Higher One since 2008, and spokesman Peter Johnson said the university plans to continue doing so because it’s an optional service for students to sign up for and allows students to get their refunds faster.
“When students come in, we encourage them to use their existing bank accounts,” he said.
But while UND’s website clearly states that having refunds directly deposited into an existing bank account is free, it is followed with “If you select your refund preference as the OneAccount with Higher One (Easy Refund), there are generally no fees associated with the account. The OneAccount is designed to be free.”
That language and marketing led to the Higher One settlement in the first place, though the company still has not admitted any fault, according to an online explanation of the settlement.
The cards also have a $2.50 fee on top of whatever fee the ATM already charges if they are used at non-Higher One ATMs, of which there are three on campus at UND.
Past problems
Higher One is no stranger to controversy and has been accused of not telling investors the company’s marketing and disclosure practices violated the Federal Trade Commission Act. The Federal Reserve Board also levied a $3.5 million penalty against Cole Taylor Bank of Chicago for its deceptive practices while working with Higher One.
Due to class action litigation filed in 2012, Higher One has also eliminated a $19 account inactivity charge as of the fall of 2013, according to a statement on its website.
ADVERTISEMENT
Johnson said UND uses Higher One because it gets students their refunds immediately instead of having to wait for the university to cut a check or transfer the money.
“When we were doing it ourselves, you’re dealing with 15,000 students and the vast majority had financial aid,” he said. “It takes a lot of time.”
UND doesn’t make any money from the agreement, but according to Higher One’s 2013 Securities and Exchange Commission report, the company went from making $77 million in 2009 to $211 million in 2013 in revenue from card transaction fees.
A claim must be submitted to have a chance to collect money from the settlement, which will go to court Nov. 24. The deadline to submit claims is Jan. 23, 2015, and the deadline to be excluded from the claim is Sept. 16 of this year.
To submit a claim or learn more about the settlement, visit oneaccountsettlement.com .
