http://www.oag.state.ny.us/press/2006/jul/jul3b_06.html "SUB-PRIME CREDIT CARD ISSUER TO PROVIDE $11 MILLION IN RESTITUTION Companies Agree to Halt Deceptive Practices Attorney General Eliot Spitzer today announced an agreement with a leading sub-prime credit card issuer to resolve an investigation into its marketing and billing practices. Under the agreement, Columbus Bank and Trust Company and CompuCredit Corporation will reform their business practices and provide $11 million in restitution to New York consumers. "This agreement sets a new standard in the way sub prime credit cards are marketed and collected, and reflects the stateâ??s ongoing commitment to protect those most vulnerable to fraud and deception," Spitzer said. The Attorney Generalâ??s office began a probe of the Georgia-based Columbus Bank last year after receiving a number of consumer complaints regarding the bankâ??s Aspire Visa credit card. The investigation revealed that Columbus Bank, in partnership with CompuCredit, a specialty financial service company that provided marketing, billing and collection services to the bank: â?¢ Failed to properly disclose activation charges of as much as $179 on Aspire Visa cards, which were marketed to people with poor credit histories; â?¢ Exaggerated the lines of credit associated with the credit cards; â?¢ Repeatedly enrolled cardholders in third party membership programs without consumersâ?? knowledge or consent and then billed cardholders renewal fees; and â?¢ Engaged in improper debt collection practices. ..."
