Class Action Alleges the Aspire VISA Secured Credit Card Violates the Credit Repair Act
Today, the 9th Circuit Court of Appeal issued a ruling in a case in which the plaintiffs are accusing Aspire VISA, a subprime credit card, its marketing is a violation of the Credit Repair Organization Act. That Act prohibits companies from seeking advance payments for fixing the consumer’s credit.
Aspire VISA offered a $300 credit limit VISA card as a way for consumers to rebuild their credit. The catch was that Aspire VISA charged consumers a $29 finance charge, a monthly $6.50 maintenance fee, a $150 annual fee all charged against the $300! The consumer received a mere $63 in credit while being charged $257. The plaintiffs in the case alleged this was an advance payment in violation of the credit repair act.
The 9th Circuit Court of Appeals held that the Act did not allow the credit card company to force the consumers into arbitration.