![]() ![]() The rules under the CARD Act ban credit card companies from charging consumers fees that exceed 25 percent of the credit limit during the first year after opening an account. This law included a fee-harvester provision to increase consumer protections for predatory cards with high upfront fees. ![]() In 2009, Congress passed the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act, to increase protections for consumers against unfair credit card billing practices. ![]() The company partners with banks or credit unions to issue its credit cards. They are frequently targeted at subprime consumers who are economically vulnerable and lack other options to access credit because of their poor credit history. Credit cards with these features are often referred to as fee-harvester credit cards. Continental credit cards often have very low credit limits and impose high upfront fees. The company designs and markets credit cards targeted at consumers with subprime credit. The CFPB’s consent order can be found at: Ĭontinental Finance Company, LLC is a subprime credit card originator and servicer based in Newark, Delaware. We will act to protect people who are wronged in this market.” “These excessive fees are especially harmful because the cards were targeted to consumers with subprime credit who are often economically vulnerable. “Continental Finance misled consumers and charged them illegal fees,” said CFPB Director Richard Cordray. The order also requires the company to pay a civil penalty of $250,000. The agency found that the company’s “fee-harvester” subprime credit cards misrepresented certain fees and hit consumers with illegal charges. – Today, the Consumer Financial Protection Bureau (CFPB) ordered Continental Finance Company LLC, a subprime credit card company based in Delaware, to refund an estimated $2.7 million to approximately 98,000 consumers who were charged illegal credit card fees. ‘Fee-Harvester’ Credit Cards Misrepresented Charges, Hit Consumers With Excessive Fees ![]()
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