Federal Reserve announces civil money penalty and issues cease and desist order against Customers Bank

[kreslik.news]

The Federal Reserve Board on Tuesday issued a consent order to cease and desist and assessed a civil money penalty against Customers Bank of Phoenixville, Pennsylvania. The order addresses the participation of the bank and its agent, Higher One, Inc. of New Haven, Connecticut, in deceptive practices in violation of section 5 of the Federal Trade Commission Act (FTC Act).

Higher One provided institutions of higher education with financial aid disbursement services for students through, among other things, a deposit account and debit card product known as the "OneAccount." Because Higher One is not a bank, it ... (read more)