Continental Finance Company excessive interest lawsuit investigation

Shamis & Gentile P.A., one of the nation's premier class action law firms specializing in arbitration cases, is investigating potential claims against Continental Finance Company.

If you have a dispute with the company, you may be eligible for compensation through arbitration.

Who is Continental Finance Company?

Continental Finance Company is a Delaware-based financial services company that focuses on marketing and servicing credit cards for consumers with less-than-perfect credit. Founded in 2005, the company partners with banks and credit unions that formally issue the cards, while Continental Finance handles much of the marketing, customer service and account servicing.

The company’s products have typically been “subprime” credit cards, often with relatively low credit limits and significant fees.

Continental Finance has offered cards such as the Cerulean, Matrix and Verve cards, frequently marketed as tools to help consumers rebuild or establish credit when they have limited options elsewhere.

Because Continental Finance targets consumers who may already be financially vulnerable, its practices have drawn regulatory and legal scrutiny. In 2015, the Consumer Financial Protection Bureau (CFPB) issued a consent order against Continental Finance related to how it marketed and serviced certain credit cards, including the fees it charged and how it described insurance on security deposits.

Why is Continental Finance Company being investigated?

The investigation by the legal team centers on whether Continental Finance has harmed consumers through unlawful fees, misleading disclosures or other unfair credit card practices, particularly for people with subprime credit.

Public enforcement records show that between April 2012 and July 2013, Continental Finance was involved with “fee-harvester” credit cards that carried low credit limits (often around $300) but high upfront and ongoing fees.

The CFPB found that:

• Consumers were told they would be charged a monthly paper statement fee only if they “elected” paper billing, yet certain cardholders were automatically enrolled in paper statements and charged about $4.95 per month unless they opted out online  
• These paper statement fees, when added to a $75 “maintenance and set-up” annual fee, pushed total required fees above 25 percent of the card’s credit limit during the first year, which violated federal limits under the Truth in Lending Act and the Credit Card Accountability Responsibility and Disclosure (CARD) Act  
• Some cardholder agreements stated that security deposits for certain cards would be “FDIC insured” when, for a period of time, many of those funds were not actually covered by FDIC insurance

As a result of the CFPB’s 2015 consent order, Continental Finance was required to provide about $2.7 million in refunds to roughly 98,000 consumers and pay a $250,000 civil penalty. The company was also ordered to stop charging illegal fees and to stop misrepresenting fees or insurance coverage.

In addition, a separate class action focused on Maryland residents alleged that Continental Finance Co. LLC and Continental Purchasing LLC made or serviced personal loans under $25,000 without the licenses required by Maryland law, in violation of the Maryland Consumer Loan Law and the Maryland Credit Services Businesses Act.

Continental Finance agreed in 2026 to a $5.75 million settlement for affected Maryland consumers with cards issued by the Bank of Missouri or Celtic Bank and serviced by Continental Finance or Continental Purchasing, while denying wrongdoing.

The current investigation is examining whether similar or additional conduct may have affected consumers in other states or under other Continental Finance credit card programs, and whether those consumers may have individual claims that can be pursued through arbitration.

If someone held a Continental Finance–serviced credit card, especially a subprime card with a low limit and high fees, they may have been affected even if they already received a small payment from a class action or regulatory settlement.

Your Rights and Next Steps

Consumers have important rights when dealing with credit card companies, even if they have subprime credit or past financial challenges. If Continental Finance engaged in deceptive, unfair or illegal practices in connection with a credit card account, a consumer may have legal claims under:

• Federal consumer protection laws, including the Truth in Lending Act and the Consumer Financial Protection Act  
• State consumer protection or unfair and deceptive acts and practices (UDAP) statutes  
• State lending, credit services or licensing laws  
• Contract and common law claims related to improper fees or misrepresentations  

Potential remedies

Depending on the facts of an individual situation and applicable law, potential remedies through arbitration may include:

• Refunds of improper fees such as undisclosed or illegal charges, or fees that exceeded legal caps  
• Reimbursement of interest that was paid on balances inflated by unlawful fees  
• Balance reductions or corrections if improper fees or charges increased the amount owed  
• Credit reporting corrections where negative information was reported based on unlawful fees or practices  
• Statutory damages or penalties provided by certain federal or state laws  
• Attorneys’ fees and costs in some cases, so consumers do not have to pay legal fees out of pocket if their claims are successful  

The exact relief available will depend on each person’s circumstances, their card agreement and the laws in their state.

What consumers can do now

If someone has or had a Continental Finance–serviced credit card, they can consider the following steps:

• Gather any available records, including:
  
  • Credit card statements  
  • Cardholder agreements or welcome packets  
  • Letters or emails from Continental Finance or the issuing bank  
  • Collection notices or payoff letters  
  • Credit reports showing how the account was reported  

• Make note of:
  
  • When the account was opened and closed  
  • The types and amounts of fees that were charged, especially in the first year  
  • Any representations made about FDIC insurance, fees or “electing” paper statements  
  • Any disputes raised with customer service and how they were handled  

A legal team experienced in arbitration against financial institutions is reviewing potential claims involving Continental Finance. They can evaluate whether an individual may qualify to bring an arbitration claim, explain possible outcomes and discuss the process in more detail.

If you believe you were charged unfair or confusing fees, were misled about your card’s terms or had other problems with a Continental Finance–serviced credit card, you do not have to navigate this alone. A review of your situation is typically free, and there is no obligation to move forward unless you choose to.

To find out if you may qualify for a potential arbitration against Continental Finance Company, please complete the form on this page so the team can review your information and contact you about next steps.