CompuCredit Charged with Deceptive Credit Card Marketing
The scope of governmental inquiry into credit card practices continues to widen. CompuCredit (and the two banks issuing the credit cards they marketed) have been charged by the Federal Trade Commission and the FDIC with deceptive credit card marketing. The marketing failed to adequately disclose upfront fees associated with the credit cards, which were primarily marketed to subprime borrowers with bad credit histories. They are also charged with illegal credit card debt collection practices for calling cardholders more than twenty times a day. The government is seeking $200 million in restitution for consumers, and hundreds of thousands of consumers may be eligible for relief. Read more at the Wall Street Journal and Forbes coverage.
