Cross Country Bank Sues AOL, F

Discussion in 'Credit Talk' started by JP, Oct 2, 2000.

  1. JP

    JP Guest

    By Rita Farrell

    WILMINGTON, Del (Reuters) - Leading credit card issuer Cross Country Bank sued America Online Inc. (NYSE:AOL - news) and Bank One Corp. (NYSE:ONE - news) unit First USA Bank for allegedly initiating electronic wire transfers without authorization.

    In a lawsuit filed in the U.S. District Court in Delaware, late Friday, Cross Country said First USA processed credit card transactions between AOL and its customers without obtaining the required authorization from Cross Country. In addition, the lawsuit charges that the defendants also processed ``hundreds of thousands'' of transactions where authorization had allegedly been denied.

    ``First USA and AOL's violation of the...operating regulations as acquirer and merchant respectively was a breach of their contractual agreement with Cross Country, a fellow member of both Visa and Mastercard,'' court papers say.

    Cross Country Bank charged the defendants with breach of contract, fraudulent misrepresentation and violations of the RICO (Racketeer Influenced and Corrupt Organizations) Act. The RICO charges stem from an alleged ``pattern of racketeering activity...for the purpose of obtaining unauthorized monthly fee payments,'' the lawsuit said.

    Cross Country has asked for a jury trial on its demands for an award of actual damages of more than $100,000 and unspecified punitive damages.

    First USA Bank spokesman Jeff Uncle said the company did not comment on pending litigation.

    AOL spokesman Rich D'Amato said the company's attorneys had reviewed the complaint and said ``it is focused on a dispute between Cross Country and First USA and does not appear to involve conduct by AOL.''

    Shares of AOL closed up $1.38 at $55.13 on the New York Stock Exchange (news - web sites) on Monday. Shares of Bank One closed 15/16 at $37-11/16 on the New York Stock Exchange.
  2. Michael

    Michael Guest

    RE: Cross Country Bank Sues AO

    Cross Country Bank has a lot of nerve suing anyone!

    Talk about the pot calling the kettle black!
  3. bg

    bg Guest

    RE: Cross Country Bank Sues AO

    The MORONIC IDIOTS at CCB are just trying to take alittle heat off their ass from the law suits that have been filed against them.
    If this is a real suit it is funny. Someone has done to CCB what CCB has done to it's customers for a long time. I agree with Michael, you talk about the pot calling the kettle black. CCB has alot of nerve filing a suit against anyone or any company. Why does everyone keep calling Cross Country a bank.
    This collection of thieves is in no way a
    Bank. At best they are the worst credit card company in the business. I hope First USA
    sticks it to them and then breaks it off in them. Then they will know how their customers feel when they do it to them.
  4. Saar

    Saar Banned

    RE: Cross Country Bank Sues AO

    This can't be.

    The Holy Bible clearly says there could be no confrontation between Satan and the Angel of Death.

    And here you are, JP, trying to refute that.

  5. lextalioni

    lextalioni Guest

    RE: Cross Country Bank Sues AO

    HAHAHA! AOL can buy CCB easily, let em try to sue. I can't belive I'm rooting for AOL.
  6. BOB

    BOB Guest

    RE: Cross Country Bank Sues AO

    lex, I agree with you I never thought the day would come that I would be cheering for AOL. It's amazing how you always cheer for the better of the two evils. I hate to say it
    but if it came down to the Devil or CROOKS COUNTRY BANK I'd have to cheer for the devil.
    CROOKS COUNTRY BANK is far worse than the devil himself.
  7. Don

    Don Well-Known Member

    RE: Cross Country Bank Sues AO

    This is too funny...sounds like CCB's defense in all of the class actions against them is to plead that they are the victim...

    I love how they mention RICO...right after they've been accused of the same types of activities...

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