Alert December 30, 2008

FDIC Settles with Credit Card Company

The FDIC entered into a settlement with CompuCredit Corporation, which was charged with deceptive marketing of subprime credit cards. Under the terms of the settlement, CompuCredit is required to provide restitution of approximately $114 million to consumers in the form of credits for certain fees. The FDIC’s order also includes a civil money penalty of $2.4 million. In addition, the order requires that credit card solicitations including representations about credit limits or available credit disclose clearly and prominently, and on the same page, fees and other restrictions affecting initial available credit. Moreover, the order contains a prohibition against misrepresentations in the marketing of open-end credit products. Click here for the order.