On April 23, the CFPB filed a notice of dismissal pertaining to its lawsuit filed in the U.S. District Court for the Western District of Pennsylvania against a credit card company and its CEO. The CFPB alleged the company engaged in deceptive and abusive practices, violating the CFPA and TILA. The CFPB decided to dismiss the action against the defendants with prejudice.
As previously covered by InfoBytes, the CFPB accused the company of misleading consumers by advertising a general-purpose credit card and charging substantial mandatory fees to access what it alleged was in fact a membership program for a credit card that could be used only to make purchases from the company’s online store or for purchasing ancillary products that had limited value and were rarely used by consumers. The Bureau stated that membership fees at issue exceeded the legal limits set by TILA, sometimes amounting to 60 percent of the consumer’s credit limit.
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