FTC Sues Subprime Credit Card Company, CompuCredit

Think your complaints to agencies like the Federal Trade Commission go unheard? Think again. The FTC has sued subprime credit credit card lender, CompuCredit for deceptive marketing of their credit cards.

Subprime credit cards target consumers with low credit scores. These credit cards often charge high fees that take away most of the credit limit, leaving the cardholder with a high balance even though he might never charge anything with the card.

This is exactly what CompuCredit did. According to the lawsuit complaint, CompuCredit marketed a Visa credit card with a $300 credit limit. However, they did not make it clear to customers that they could be charged up to $185 in upfront fees leaving only $115 in available credit.

For more details on the lawsuit read FTC Lawsuit Against CompuCredit and Jefferson Capital.