Consumer complaint received 2025-06-10 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Fees or interest — Problem with fees
Company: Atlanticus Services Corporation
State: CA

Complaint narrative:
bXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX\n\nRe: Did not disclose the annual fee of {$125.00} will be charged within 5 months after the card was issued.\n was not given the chance to review and cancel prior to taking accepting the offer...\n\nDear Legal Department/ inhouse Attorney\n\nI am writing to formally address serious concerns regarding my experience with the credit card account issued by your company, under account number XXXX. I believe your company has failed to comply with the requirements set forth by the Truth in Lending Act (TILA), which mandates that all fees, charges, and important terms associated with a credit card application be fully disclosed and provided to the applicant prior to the submission of the application.\n\nSpecifically, I am deeply troubled by the following issues:\n\n    Failure to Provide Full Disclosure: I was not provided with a clear, upfront disclosure of the terms and fees associated with the credit card offer prior to submitting my application. Under TILA, I should have been presented with the relevant details, including any annual fees, interest rates, and charges, so that I could make an informed decision regarding whether or not to proceed with the application. However, these disclosures were not given in a timely or transparent manner, which I believe is a violation of my rights as a consumer.\n\n    Deceptive Practices: The violations stem from the copy you sent to me after with the fees already tacked on with out me prior deciding if i wanted or accept those terms of the XXXX annual fee charged immediately, (deceptions and lies)  Upon reviewing the terms after receiving my card, I discovered that the annual fee of XXXX was charged within the first five months of the cards issuance. This fee is nearly 30% of my credit limit, which is an excessive amount. Furthermore, I was not made aware of this fee upfront, and the vague response I received when I inquired about it suggests a deliberate omission of critical information. I believe these practices fall under a "dark pattern" of misleading tactics, which intentionally deceive the consumer and restrict their ability to make a fully informed decision.\n\n    High Interest Rates: The interest rate on the card is 36.00%, which is incredibly high and disproportionately increases the balance owed. This rate makes it nearly impossible to pay off the balance in a reasonable timeframe, thus trapping consumers in a cycle of debt. This type of practice is not only unethical but, in my opinion, predatory.\n\n    Unfair Fees and Charges: In addition to the annual fee, I have noticed several other fees being added to my account. I was not adequately informed about these fees prior to my application, nor was I given an opportunity to decline or question them.\n\nAs a consumer, I believe I have the right to receive full and truthful disclosures regarding the terms and fees associated with any credit product I consider. By omitting this information and using misleading tactics, your company has violated both my trust and my rights under the Truth in Lending Act.\n\nI request the following actions:\n\n    A full, detailed explanation of all fees, charges, and interest rates associated with this credit card.\n\n    A review of my account for potential violations of the Truth in Lending Act and a refund of any fees that were improperly charged without proper disclosure.\n\n    A reassessment of the terms of the credit card, including the high-interest rates and exorbitant annual fees, to ensure they comply with both federal regulations and ethical business practices.\n\nFailure to address these issues promptly and satisfactorily will leave me with no choice but to explore further legal action, including but not limited to, filing a complaint with the Consumer Financial Protection Bureau (CFPB) and seeking compensation in regarding  violations of the Truth in Lending Act.\n\nI trust that you will take this matter seriously and provide a prompt response. Please contact me at your earliest convenience to resolve these issues. Arbritration needs to start . Have the in house attorney contact me Asap.\n\nSincerely,\n\n\nXXXX XXXX

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