Credit cards aimed at college students can carry high fees

STUDENTS AND THEIR PARENTS ABOUT

STUDENT FINANCES AND WASTED

MONEY.

>> 5 ON YOUR SIDE'S MONICA

LALIBERTE TELLS US ABOUT THE

RISK OF CAMPUS SPONSORED BANK

ACCOUNTS AND PREPAID CARDS.

>> Reporter: FOR MOST COLLEGE

STUDENTS, CLASS SCHEDULES AND

SOCIAL EVENTS ARE TOP OF MIND.

NOT CREDIT CARDS AND POTENTIAL

FEES AND PENALTIES.

BUT THAT'S WHAT A LOT OF

STUDENTS ARE RUNNING IN TO WITH

THEIR NEW CREDIT CARDS.

HIGHER ONE IS ONE OF THE BIGGEST

PLAYERS, OFFERING CARDS AT MORE

THAN 800 CAMPUSES ACROSS THE

COUNTRY.

CONSUMERS UNION LOOKS AT THEM

AND EIGHT OTHER COMPANIES THAT

OFFER CAMPUS SPONSORED ACCOUNTS.

>> WE'VE SEEN FEES, THE KIND OF

FEES YOU WOULDN'T TYPICALLY SEE

ON A REGULAR RETAIL BANK

ACCOUNT.

>> Reporter: OVERDRAFT FEES AS

HIGH AS $38, A $.50 FEE WHEN YOU

USE THE DEBIT CARD, AND RUNNING

$3, AND AN INACTIVITY FEE IF YOU

DON'T USE YOUR ACCOUNT.

LOW COST OPTIONS, BUT STUDENTS

NEED TO BE CAREFUL OR RISK

HUNDREDS OF DOLLARS A YEAR IN

USAGE FEES.

SO WHY EVEN SIGN UP FOR ONE?

>> MANY STUDENTS FIND IT

DIFFICULT TO AVOID SIGNING FOR

THESE PRODUCTS, IT MAY BE THE

DEFAULT OPTION, THEY'RE BEING

NICKEL AND DIMED OUT OF THAT

AID.

>> Reporter: THE CLASS ACTION

LAWSUIT AGAINST HIGHER ONE

ALLEGES DE-SEPTEMBERIVE AND

AGGRESSIVE MARKETING AND A

FAILURE TO GIVE UNCONSCIONABLE

FEES.

BY FEDERAL LAW, YOU CAN HAVE IT

DIRECTLY DEPOSITED IN TO AN

EXISTING ACCOUNT, YOUR FEDERAL

AID, OR GET A CHECK, EVEN CASH.

MONICA LALIBERTE, WRAL, 5 ON

YOUR SIDE.

>> AND MONICA ADDS WHILE HIGHER

ONE DID NOT ADMIT WRONG DOING,

THE COMPANY AGREED TO SETTLE THE

LAWSUIT FOR $15 MILLION AND DROP

SOME OF THE FEES, WANTING

FEDERAL REGULATORS TO DO MORE

ABOUT BANKS THAT RESTRICT