CFPB Orders Subprime Continental Finance To Refund 2.7 Million

[gdale6]

http://www.consumerfinance.gov/newsroom/cfpb-orders-subprime-credit-card-company-to-refund-2-7-milli...

‘Fee-Harvester’ Credit Cards Misrepresented Charges, Hit Consumers With Excessive Fees

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) ordered Continental Finance Company LLC, a subprime credit card company based in Delaware, to refund an estimated $2.7 million to approximately 98,000 consumers who were charged illegal credit card fees. The agency found that the company’s “fee-harvester” subprime credit cards misrepresented certain fees and hit consumers with illegal charges. The order also requires the company to pay a civil penalty of $250,000.

“Continental Finance misled consumers and charged them illegal fees,” said CFPB Director Richard Cordray. “These excessive fees are especially harmful because the cards were targeted to consumers with subprime credit who are often economically vulnerable. We will act to protect people who are wronged in this market.”

[woodyman100]

I got my $1.72 check for a card I closed 2 years ago

---

@gdale6 wrote:

http://www.consumerfinance.gov/newsroom/cfpb-orders-subprime-credit-card-company-to-refund-2-7-milli...

‘Fee-Harvester’ Credit Cards Misrepresented Charges, Hit Consumers With Excessive Fees

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) ordered Continental Finance Company LLC, a subprime credit card company based in Delaware, to refund an estimated $2.7 million to approximately 98,000 consumers who were charged illegal credit card fees. The agency found that the company’s “fee-harvester” subprime credit cards misrepresented certain fees and hit consumers with illegal charges. The order also requires the company to pay a civil penalty of $250,000.

“Continental Finance misled consumers and charged them illegal fees,” said CFPB Director Richard Cordray. “These excessive fees are especially harmful because the cards were targeted to consumers with subprime credit who are often economically vulnerable. We will act to protect people who are wronged in this market.”

---

[Anonymous]

You wanted more?  The lawyers have to feed their kids too!