Two states have sued Cross Country Bank, of Wilmington, DE, alleging that it defrauded and harassed low-income consumers with poor credit.
The suits, which were filed late last week by New York State Attorney General Eliot Spitzer and Minnesota Attorney General Mike Hatch, state that the firm deliberately targeted the credit-poor. Also named in the complaints is Applied Card Systems, of Glen Mills, PA, which allegedly made abusive collection calls.
The attorneys general, who said they acted after receiving hundreds of complaints apiece, are seeking civil penalties, restitution and court orders prohibiting the firms from continuing the practices.
Cross Country denied violating any laws, and said it would “work in a cooperative manner with the states of Minnesota and New York and yet vigorously defend our business practices,” the Philadelphia Inquirer reported.
According to Spitzer
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