CompuCredit in $116M FDIC Subprime Settlement.(Community Banking)(Federal Deposit Insurance Corp.)

Byline: Joe Adler

WASHINGTON - The Federal Deposit Insurance Corp. announced Friday that CompuCredit Corp. will pay $116 million and reform its practices to settle charges the Atlanta marketing firm misled subprime credit card users.

CompuCredit is to supply $114 million of credits to help customers pay fees regulators say the company did not properly disclose. It will also pay $2.4 million in civil money penalties and give cash refunds to some customers.

The FDIC and Federal Trade Commission initially sought $150 million from the company in June, claiming that CompuCredit and three banks that had used its marketing were tricking customers into …