SAN FRANCISCO, May 23, 1999 -- The San Francisco District Attorney is investigating allegations of unfair business practices against Providian Financial Corp., the nation's ninth-largest issuer of credit cards, a spokesman said.
"We got a lot of complaints," District Attorney spokesman Clarence Johnson said. He declined to specify the alleged abuses but said they include the sale of credit cards, disclosure of terms and debt collection.
San Francisco-based Providian targets customers with tarnished credit histories. It has been a darling of Wall Street but its shares plunged 14 percent on May 21, when word of the D.A.'s probe was first reported by the San Francisco Chronicle and KRON-TV.
Providian denied any wrongdoing. "We're confident we are in compliance with all laws and regulations," the company said in a prepared statement.
The Oakland Better Business Bureau said it had received 850 complaints about Providian, ranging from allegedly deceptive credit card soliciations to failure to properly post payments.
