Credit Card Company Trapped People in High-Fee Cards, CFPB Says

A Pennsylvania-based credit card company collected more than $51 million in fees over five years by trapping consumers in high-cost membership programs that were unduly difficult to cancel, the Consumer Financial Protection Bureau said.

Reliant Holdings Inc., doing business as Horizon Card Services, and its founder and CEO Robert Kane charged customers a $300 annual membership fee to access a card with a credit limit of either $500 or $750 in the first year of membership, the CFPB said in a complaint filed Friday in the US District Court for the Western District of Pennsylvania.

The cards could be used ...