Massive Aspire-Visa Credit Card Shutdown

Thousands of people suddenly began having trouble with their Aspire-Visa cards while shopping in the last couple of weeks and consumer complaints began popping up on the web. The cardholders learned their accounts had been shut down, and then they and other Aspire-Visa cardholders who weren't even using their cards began to receive letters in the mail saying their account was closed.

In the majority of cases, the accounts were not closed because the customers had missed a payment, or gone over their limit. Some had a zero balance. Others had never missed a payment.

These letters were not 'demand' or 'acceleration' letters, where you are told that you have to pay the balance in full by a certain date or you will be sued. Customers were told that they simply could not longer use the card and would continue to be billed monthly until their account was paid off.

Aspire-Visa has had a very bad reputation in the past for abusive and deceptive practices. In 2006, after an investigation by the State of New York into the compaies that run the program -- Georgia-based Columbus Bank and Trust Company and CompuCredit -- a settlement was reach wherein the companies were ordered to pay $11 million to New York consumers. The investigation revealed, among other things, that they charged activation fees of as much as $179, while failing to properly disclose that information; and they improperly enrolled cardholders in third party membership programs and billed cardholders unauthorized renewal fees. The companies also had to pay $525,000 in civil penalties and costs.

But that was 2 years ago, and did not put them out of business.

Now, without explanation, they have simply shut down accounts and consumers are left wondering how that will affect their credit rating.