SOURCE: CompuCredit
December 19, 2008 16:42 ET
CompuCredit Reaches Agreement With FDIC, FTC
ATLANTA, GA--(Marketwire - December 19, 2008) - CompuCredit Corporation (NASDAQ: CCRT) today
announced that it has reached a settlement with the Federal Deposit
Insurance Corporation (FDIC) and the Federal Trade Commission (FTC) to
resolve their regulatory inquiries regarding the Company's credit card
marketing practices. The settlement with the agencies relates to marketing
practices from 2005 and prior years, does not require any change to
CompuCredit's existing marketing or servicing practices and does not have a
material impact on CompuCredit's financial condition.
"We are pleased to have reached this settlement with the FDIC and the FTC
in order to resolve their concerns regarding the Company's past marketing
practices," said David Hanna, CompuCredit's Chairman and Chief Executive
Officer.
The settlement covers customers throughout the United States and provides
for CompuCredit to credit approximately $114 million to certain customer
accounts that were opened between 2001 and 2005 and subsequently charged
off or were closed with no purchase activity. This amount involves mostly
non-cash credits -- in effect, reversals of amounts for which payments were
never received. Cash refunds to consumers are estimated to be
approximately $3.7 million, and the Company also agreed to pay $2.4 million
to the U.S. Treasury.
About CompuCredit
CompuCredit is a specialty finance company and marketer of branded credit
cards and related financial services. CompuCredit provides these services
to consumers who are underserved by traditional financial institutions.
Through corporate and affinity contributions focused on the underserved and
un-banked communities, CompuCredit also uses its financial resources and
volunteer efforts to address the numerous financial challenges affecting
its customers. For more information about CompuCredit, visit
www.CompuCredit.com.