FTC files suit against CompuCredit & Jefferson Capital
Go for it ! about time... now they need to go after Sherman Finacial, CreditOne Bank, LVNV funding and Resurgent .
The Federal Trade Commission today announced the filing of a lawsuit charging CompuCredit Corporation and its wholly-owned debt collection subsidiary, Jefferson Capital Systems, LLC, with deceptive marketing practices in selling credit cards to consumers in the subprime market.
The FTC’s complaint charges both defendants with violations of the FTC Act and Jefferson Capital with violations of the Fair Debt Collection Practices Act (FDCPA). Today’s action is the result of a coordinated investigation of the defendants’ marketing practices by the FTC and the Federal Deposit Insurance Corporation. In a related action, the FDIC has issued notice of administrative charges against CompuCredit and two banks that issued credit cards marketed by CompuCredit.
“It is important for all consumers – including those in the subprime market – to have access to credit card products. But the marketing of these products must be truthful; it should not – and cannot – be misleading about the true costs and terms of the credit card,” said Lydia Parnes, Director of the FTC’s Bureau of Consumer Protection.
As stated in the FTC’s complaint, CompuCredit markets credit cards, primarily through direct mail solicitations, under various brand names, including Aspire, Aspire A Mas, FreedomCard, Tribute, Imagine, Majestic, Aspen, Emerge and Fingerhut Credit Advantage. These cards generally fit into three categories:
