In February 2015, the CFPB ordered Continental Finance Company to “refund an estimated $2.7 million to approximately 98,000 consumers,” alleging they had misled “consumers about credit card costs, charged illegal credit card fees, and misrepresented account insurance.” In some cases, the CFPB alleged, Continental promised consumers’ security deposits “for certain credit cards would be ‘FDICinsured’ when, in reality, for a time period many funds were not FDIC-insured.”

• The CFPB issued a consent order to Continental Finance Company, LLC. [CFPB file no. 2015-CFPB-0003 (Continental Finance Company, LLC.), filed 02/04/15]

• The CFPB ordered Continental Finance to “refund $2.7 million to about 98,000 customers who were charged illegal fees” and pay a $250,000 civil penalty. [Ann Carrns, “Subprime Borrowers Often Lured by High-Fee Credit Cards,” The New York Times, 02/07/15]

• The CFPB claimed Continental’s “subprime credit cards misrepresented certain fees and hit consumers with illegal charges.” Specifically, the CFPB “alleged that Continental Finance misled consumers about credit card costs, charged illegal credit card fees, and misrepresented account insurance by stating in some consumer cardholder agreements that security deposits consumers provided for certain credit cards would be ‘FDICinsured’ when, in reality, for a time period many funds were not FDIC-insured.” [Timothy St. George, David M. Getting, and David N. Anthony, “CFPB Orders Credit Card Lender To Refund Millions To Consumers And Pay Civil Penalty,” Mondaq Business Briefing, 02/13/15]