I filed a complaint with the BBB. I advise you all to do the same. They've dropped my annual fee, monthy fee and I'm working on getting it removed from my credit report through the BBB. They send responses but you just need to keep saying 'no you don't agree' and they should drop it. It is illegal because they charged the annual fee after the accounts were closed and credited them back 30 days later...collecting interest on that time period. Ever see OFFICE SPACE? That stuff adds up and they're making a fortune and already in trouble.
Here is some recent news on them:
CompuCredit Settles Federal Lawsuit for $114 Million
CompuCredit Corp. and its debt collection agency have agreed to repay consumers as much as $114 million to settle a lawsuit initiated this past June by the Federal Deposit Insurance Corp. and the Federal Trade Commission, which accused the organization of deceptively marketing and collecting on subprime credit cards to consumers (“CompuCredit and Its Collection Agency Settle FTC-FDIC Case for $114 Million, ” Inside ARM, Dec. 22, 2008).According to the lawsuit, CompuCredit offered unsecured credit cards through three FDIC-supervised banks, but failed to disclose upfront fees and misrepresented the initial amount of credit available to consumers.
The credit cards, which went by the brand names “Imagine, ” “Aspire, ” and “Emerge, ” were marketed through the mail and offered borrowers a $300 credit limit. However, cardholders who took advantage of the offer were charged undisclosed, upfront fees of as much as $185, reducing the credit cards’ available line of credit to as little as $115. As a result, many customers exceeded their credit limit in their first month, the FTC claimed.
“When signing up for a credit card, consumers have the right to know the truth about the amount of credit they are getting and the cost of that credit up front, ” said Lydia Parnes, director of the FTC’s bureau of consumer protection (“CompuCredit in $114M Settlement with Regulators, ” Associated Press, Dec. 19, 2008).
The suit also alleged that CompuCredit’s collection arm, Jefferson Collection Services, violated the Fair Debt Collection Practices Act by “misrepresenting a debt collection program as a credit card offer and using abusive collection tactics, ” including making debt collection calls to consumers before 8 a.m. and after 9 p.m. as many as 20 times daily.
As part of the settlement, CompuCredit has agreed to pay a $2.4 million civil penalty as well as issue credits to consumers for fees arising from deceptive marketing practices, and Jefferson Collection Services has been prohibited from engaging in abusive practices, but will be able to continue debt collection activities.
A statement from CompuCredit indicated that the settlement addresses marketing practices the company used in 2005 and earlier and wouldn’t require CompuCredit to make any changes to current marketing methods (“Feds and CompuCredit Settle for $114M, ” Atlanta Business Chronicle, Dec. 19, 2008). Although CompuCredit reported a $32.3 million third-quarter loss this year, the company said that the settlement wouldn’t affect its financial condition.