FTC Sues Subprime Credit Card Pusher

     ATLANTA (CN) – The FTC charged CompuCredit and its debt-collecting subsidiary, Jefferson Capital Systems, with deceptively pushing credit cards to consumers with poor credit and charging enormous, undisclosed fees.

     Among the accusations in the federal lawsuit are that CompuCredit offered a Visa credit card with a $300 limit, but immediately charged $185 in inadequately disclosed “fees,” leaving the consumer with only $115 in available credit.
     The FTC also claims the defendants misrepresented their debt collections as credit card offers, and abused consumers by calling them more than 20 times a day, including before 8 a.m., after 9 p.m., and on Sundays.
     In cooperation with banks, CompuCredit since 2001 has pushed a number of credit cards, including Aspire, Aspire A Mas, FreedomCard, Tribute, Imagine, Majestic, Aspen, Emerge and Fingerhut Credit Advantage, the FTC says. It demands rescission, restitution, disgorgement of unjust profits, penalties and an injunction.

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