Predatory credit card companies

CompuCredit Corporation has agreed to pay out more than $114 million dollars to customers it provided credit cards to under false pretenses.  FTC has arranged a settlement with customers that will allow their accounts to be credited with substantial sums as part of the settlement.

Some of the abuses were:

  • Promised customers $300 in credit which it then took $185 in fees leaving them with little more than $100.
  • Offered some customers $3,250 credit but failing to state that half that amount wouldn’t be available for 90 days.
  • Customers were told they would be able to charge off existing debt to their new cards but instead were enrolled in a debt repayment plan and didn’t get the card until 25-50% of the debt was paid.

FTC News Release

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