Continental Finance to Refund Credit Card Fee to New York Consumers

to refund the initial annual fee of $125 to more than 150 New Yorkers. The company also agreed to improve its disclosures in direct mail marketing of its “Surge” credit cards.

According to Schneiderman, his office received a consumer complaint against the company particularly its Surge credit card. In response, the AG’s office opened an investigation into the matter.

Credit card company failed to equally disclose $125 off-the-top-first year fee 

In its marketing materials, Continental Finance is prominently offering its Surge credit card with $500 limit. However, the company failed to equally disclose the $125 off-the-top-first year fee to consumers. Therefore, consumers’ initial credit limit is only $375.

In a statement, AG Schneiderman said, “Misleading credit card marketing can have a disastrous domino effect for New York consumers, particularly for those new to the credit market or with compromised credit ratings.”