Feds seek up to $200M from CompuCredit, banks in S.D. and Delaware

Washington (AP) Federal officials are seeking more than $200 million in fines and restitution from CompuCredit Corporation and banks in South Dakota and Delaware that allegedly engaged in deceptive credit card marketing practices.

The Federal Trade Commission and Federal Deposit Insurance Corporation said today CompuCredit and the banks failed to adequately disclose up-front fees and other conditions when marketing cards under the Aspire, FreedomCard, Tribute and other brand names.

Regulators say the cards largely were marketed to individuals with weak credit histories also known as the subprime market.

The banks are First Bank & Trust, based in Brookings, and First Bank of Delaware, in Wilmington.

CompuCredit is based in Atlanta.

One official says hundreds of thousands of consumers may be eligible for refunds.

By AP Business Writer Christopher S. Rugaber (Copyright 2008 by The Associated Press. All Rights Reserved.) APNP 06-10-08 1650CDT | save this article / add to your favorites list