Letter to the Editor: Providian’s Lending Still Troubles CFA

To the Editor:

The Oct. 19 article [page 2] on Providian Financial Corp.’s unveiling of a new deposit product implied that the Consumer Federation of America approves of the company’s credit practices.

While the CFA commends Providian for new efforts to encourage middle-income savings, we remain [as I said a few months ago] “troubled by Providian’s aggressive marketing to lower-income households” and by that of all credit issuers who extend unaffordable credit to these households.
Stephen Brobeck
Executive Director Consumer
Federation of America Washington