Credit cards issued by a privately insured credit unionaffiliated with the Illinois Credit Union League received aCFPB fine for violating servicing rules.
According to a consent order published Wednesday, theContinental Finance Company LLC lied to consumers about the cardfees and about whether security deposits made for some of the cardscarried FDIC Insurance. The company also violated the Truth inLending Act by requiring consumers to pay more than 25% in feesduring the account's first year.
Consumer groups opposing abusive credit card practices labeledthe cards “fee harvesting” cards, saying they have low limits and highfees.
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