U.S. battles CompuCredit over credit card practices

WASHINGTON, June 10 (Reuters) - U.S. regulators took action against CompuCredit Corp (CCRT.O: Quote, Profile, Research, Stock Buzz) and two banks on Tuesday, seeking more than $200 million in restitution and civil penalties, the Federal Deposit Insurance Corporation (FDIC) said.

The FDIC and Federal Trade Commission accused the companies of deceptive marketing practices in selling credit cards to consumers with poor credit. The banks that issued the credit cards are the First Bank of Delaware (FBOD.OB: Quote, Profile, Research, Stock Buzz) and privately held First Bank & Trust from South Dakota.

Among other allegations, the FTC accused CompuCredit of telling consumers that it would offer them a Visa credit card with a $300 credit limit then charging as much as $185 in fees that had not been adequately disclosed.

CompuCredit said on Tuesday that it would "vigorously contest" the allegations. (Reporting by John Poirier and Diane Bartz, editing by Leslie Gevirtz)