CONSUMER NEWS RECALLS COMPLAINT FORM SCAM ALERTS
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CONSUMER NEWS RECALLS COMPLAINT FORM SCAM ALERTS |
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Texas Sues Cross Country Bank |
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Texas Attorney General Greg Abbott has sued a Delaware-based bank that markets credit cards to Texas consumers who have low incomes or tarnished credit records. Cross Country Bank Inc. and its affiliate, Applied Card Systems Inc., allegedly prey on low-income consumers with poor or no credit ratings, promising them credit cards with high credit limits and an opportunity to improve their damaged credit records. In fact, the credit cards carry exorbitant fees and other hidden costs that often lead consumers into a worsened financial situation, Abbott said. "These companies engaged in egregious and offensive tactics against Texans who sought to establish decent credit ratings and improve their livelihoods," said Abbott. "As it turns out, the companies succeeded in padding their pockets and making life miserable for these consumers. I'm asking for the court's help in protecting all Texans from these abusive practices." According to the lawsuit, the company advertises that consumers will receive credit limits up to $2,500, but in reality, most obtain limits as low as $200 to $400, with an interest rate of about 20 percent. In addition, upon opening the account, consumers are charged an origination fee, annual fee and other charges that consume half or more of the consumers' credit lines. Many consumers also incur additional fees when, without their knowledge, they are enrolled by Cross Country Bank in membership programs. Most consumers are not aware of these charges, causing them to unwittingly exceed their credit limits, which results in additional fees. Ultimately, a downward spiral results in which consumers never gain control of their accounts as the finance charges, over-the-limit fees and other charges continue to accrue. As this descent into debt worsens, Cross Country Bank's affliliate, Applied Card Systems, then begins harassing the consumers, their family members, and even complete strangers with repeated and sometimes threatening or obscene telephone calls seeking to collect the outstanding debt. The companies were both founded and owned by Rocco A. Abessinio of Boca Raton, Florida, who has also been named as a defendant. The Attorney General seeks an injunction to stop these unlawful practices, as well as civil penalties of $20,000 for each violation of the Deceptive Trade Practices or Debt Collection Acts, restitution for harmed consumers and reimbursement for state attorneys' fees. |
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