CompuCredit target of FDIC, FTC probes -WSJ

NEW YORK, June 10 (Reuters) - Regulators are expected to seek more than $100 million in fines and restitution against CompuCredit Corp (CCRT.O: Quote, Profile, Research, Stock Buzz) and affiliate banks related to credit-card marketing and debt-collection practices, The Wall Street Journal reported on Tuesday, citing people familiar with the matter.

News conferences at the Federal Trade Commission and the Federal Deposit Insurance Corp are scheduled for Tuesday afternoon, at which so far unidentified credit-card marketing and debt-collection companies are expected to be targeted for using "deceptive marketing practices and abusive debt collection tactics."

Although the agencies have not named CompuCredit, the company said in a May 7 regulatory filing that it was in discussions with both the FTC and FDIC.

It said the FDIC had launched an investigation into its "policies, practices and procedures used in connection with our credit card originating financial institution relationships."

"In the near future, we expect to enter into settlement agreements with the FDIC and FTC limiting certain marketing, servicing and collection practices ... and requiring us to credit various fees to affected customers," it said.

CompuCredit Chairman and Chief Executive David Hanna would not comment to the Journal, which said the FTC plans to announce a federal lawsuit charging credit-card-marketing and debt-collection companies with using deceptive practices aimed at borrowers with poor credit.

The FDIC plans to file administrative charges against the credit-card marketer and two banks that issued cards the company marketed, the Journal said, adding that it is also expected to announce a settlement with a third bank. (Reporting by Christopher Kaufman; Editing by Quentin Bryar)