Low Pay credit card was a ripoff, feds say

The Low Pay Card
The Low Pay Card

A group that marketed the Low Pay Card -- a credit card for high-risk borrowers with bad credit -- settled a Federal Trade Commission lawsuit saying customers were charged a range of illegal fees and only allowed to buy overpriced items from a catalog.

The defendants failed to clearly disclose they would debit substantial advance fees and a non-refundable annual fee from consumers' bank accounts , the agency said. In addition, the defendants lied to customers about refunding an activation fee and illegally charged an advance fee for a guaranteed line of credit.