Texas Sues Cross Country Bank

Cross Country Bank • Consumer Complaints • Complaints about Applied Card Bank --- News • New York Fines Cross Country Bank $9 Million • Collection Agency Agrees to Write Off Cross Country Debts Owed by West Virginians • Cross Country Bank To Pay WV $1.5 Million • Cross Country Ends WV Stand-Off • Cross Country Bank Fined $450,000 by PA • WV, Cross Country Swap Charges • West Virginia Sues Cross Country Affiliate • New York Rules Against Cross Country • Pennsylvania Sues Cross Country • Texas Suit

June 7, 2004
Texas Attorney General Greg Abbott has sued a Delaware-based bank that markets credit cards to Texas consumers who have low incomes or tarnished credit records.

Cross Country Bank Inc. and its affiliate, Applied Card Systems Inc., allegedly prey on low-income consumers with poor or no credit ratings, promising them credit cards with high credit limits and an opportunity to improve their damaged credit records.

In fact, the credit cards carry exorbitant fees and other hidden costs that often lead consumers into a worsened financial situation, Abbott said.

"These companies engaged in egregious and offensive tactics against Texans who sought to establish decent credit ratings and improve their livelihoods," said Abbott. "As it turns out, the companies succeeded in padding their pockets and making life miserable for these consumers. I'm asking for the court's help in protecting all Texans from these abusive practices."

According to the lawsuit, the company advertises that consumers will receive credit limits up to $2,500, but in reality, most obtain limits as low as $200 to $400, with an interest rate of about 20 percent.

In addition, upon opening the account, consumers are charged an origination fee, annual fee and other charges that consume half or more of the consumers' credit lines. Many consumers also incur additional fees when, without their knowledge, they are enrolled by Cross Country Bank in membership programs.

Most consumers are not aware of these charges, causing them to unwittingly exceed their credit limits, which results in additional fees. Ultimately, a downward spiral results in which consumers never gain control of their accounts as the finance charges, over-the-limit fees and other charges continue to accrue.

As this descent into debt worsens, Cross Country Bank's affliliate, Applied Card Systems, then begins harassing the consumers, their family members, and even complete strangers with repeated and sometimes threatening or obscene telephone calls seeking to collect the outstanding debt.

The companies were both founded and owned by Rocco A. Abessinio of Boca Raton, Florida, who has also been named as a defendant.

The Attorney General seeks an injunction to stop these unlawful practices, as well as civil penalties of $20,000 for each violation of the Deceptive Trade Practices or Debt Collection Acts, restitution for harmed consumers and reimbursement for state attorneys' fees.

Back to the top |

Terms of Use Your use of this site constitutes acceptance of the Terms of Use

Advertisements on this site are placed and controlled by outside advertising networks. ConsumerAffairs.com does not evaluate or endorse the products and services advertised. See the FAQ for more information.

Company Response Welcome If complaints about your company appear on our site, we welcome your response. Please see the Response Form for more information.

For more information, see the FAQ and privacy policy. The information on this Web site is general in nature and is not intended as a substitute for competent legal advice.  ConsumerAffairs.com Inc. makes no representation as to the accuracy of the information herein provided and assumes no liability for any damages or loss arising from the use thereof. 

Copyright © 2003-2009 ConsumerAffairs.com Inc.  All Rights Reserved.    The contents of this site may not be republished, reprinted, rewritten or recirculated without written permission.