Consumer complaint received 2025-09-30 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Trouble using your card — Can't use card to make purchases
Company: Atlanticus Services Corporation
State: CA

Complaint narrative:
Subject : Complaint Against XXXX XXXX Deceptive Practices : XXXX XXXX I am submitting a complaint against XXXX XXXX, owned by Atlanticus Holdings Corporation, a publicly traded company on XXXX under the symbol XXXX, for engaging in deceptive and predatory practices that violate the FTC Acts prohibition on unfair or deceptive acts or practices ( UDAP ). 

XXXX is blatantly practicing credit cycling on the backs of the underbanked conduct that is both predatory and despicable. 
Background XXXX recently suspended my account, claiming it was due to suspicious activity. Representatives have provided contradictory explanations : XXXX told me my account was suspended for suspicious activity pending an investigation. 

Another told me there was no investigation, only a review. 

On XX/XX/XXXX, I spoke with a manager named XXXX. He told me I signed off on the Cardholder Agreement authorizing XXXX to suspend my account. When I asked him to point to the exact language, he cited the following clause under the 'Your Credit Limit ' section : We reserve the right to change ( to set, increase, decrease or remove ) the Credit Limit for your Account from time to time in accordance with this Agreement and applicable law. 

XXXX claimed that the word remove allowed XXXX to suspend my account for XXXX business days. This clause clearly relates to credit limit adjustments, not account suspensions. Yet XXXX used it as the contractual justification for denying me access to my account and my available credit. 

Why This is Deceptive By citing an irrelevant clause and presenting it as authority for suspension, XXXX misrepresented the terms of its own contract. This is materially misleading to consumers and constitutes XXXX XXXX, because XXXX : XXXX ) Holds customer payments after they clear. 

XXXX ) Continues charging interest and fees during those holds. 

XXXX ) Restricts access to available credit for XXXX business days. 

This manipulative practice allows XXXX to extract extra fees and interest under the guise of suspicious activity holds. 

Harm to XXXX XXXX targets the underbanked and underserved, marketing itself as a tool to help them build credit. In reality, XXXX misleads customers about the contractual basis for account suspensions, withholds access to credit, and charges unjustified fees during payment holds. This is predatory conduct that disproportionately harms vulnerable consumers. 

Request I respectfully request that the FTC investigate XXXX XXXX for : Misrepresenting contractual terms to customers. 

Engaging in deceptive and unfair practices in violation of the FTC Act. 

Using account suspensions and payment holds as a pretext to generate revenue through fees and interest. 

Thank you for your attention to this matter. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX, CA XXXX XXXX XXXX

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation