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CompuCredit to pay $200 million

June 11, 2008|From Times Wire Services

A U.S. bank regulator asked CompuCredit Corp., an Atlanta marketer of credit cards to sub-prime borrowers, and two banks to repay at least $200 million in fees and charges resulting from "deceptive" practices.

CompuCredit; First Bank of Delaware of Wilmington, Del.; and First Bank & Trust of Brookings, S.D., also are being asked to pay civil penalties of more than $6.6 million. They are accused of marketing sub-prime credit cards in violation of federal law, the Federal Deposit Insurance Corp. said.

Columbus Bank & Trust, a unit of Synovus Financial Corp. of Columbus, Ga., agreed to pay $2.4 million to settle FDIC claims.

For The Record
Los Angeles Times Friday, June 13, 2008 Home Edition Main News Part A Page 2 National Desk 2 inches; 69 words Type of Material: Correction
CompuCredit: A headline on an article in Business on Wednesday about penalties imposed by a U.S. bank regulator against CompuCredit Corp. for alleged deceptive practices said, "CompuCredit to pay $200 million." The article stated that the regulator had asked that the credit card marketer together with two banks repay at least that amount, in fees and charges; however, neither CompuCredit nor the two banks have agreed to do so.

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