The Federal Reserve Board (FRB) has announced a multi-million-dollar penalty against a Chicago bank for its role in deceptive campus debit card practices.

The Illinois Department of Financial and Professional Regulation (IDFPR) announced the sanctions Tuesday in a news release, fining the Cole Taylor Bank of Chicago $3.5 million for participating in deceptive practices with its former partner Higher One. Combined with the $600,000 Cole Taylor will be required to pay the IDFPR, the bank will pay out $4.11 million.

"It is unconscionable for any company to seek profit by misleading customers about the terms of their financial accounts," Manuel Flores, acting secretary of the IDFPR, said in the release. "Too many students and their families end up with a massive burden of education debt, so it is especially important to protect students from deceptive practices. I'm gratified by our efforts to protect these students' finances by holding a bank accountable for its unlawful business conduct."

The FRB is now going to try and adjudicate the matter with Higher One and Cole Taylor will be required to pay the difference in whatever amount of the sanctions Higher One cannot cover.

"Holding Cole Taylor accountable and ensuring that the bank makes a financial commitment to support restitution to these students should send a clear message that we take this situation seriously," Sheila Saegh Henretta, IDFPR acting director of the division of banking, said in the release. "We will not tolerate any deceptive banking practices in Illinois."

The Huffington Post first reported the FRB's probe in April and noted that it followed an investigation from the Federal Deposit Insurance Corporation (FDIC). The FDIC's probe ended in 2012 with Higher One paying $11 million in a settlement.

One of the nation's leading campus debit card providers, Higher One was accused of advertising deceptive checking accounts. Higher One says it no longer endorses doubling student ID cards as debit cards, a practice many critics disliked.

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