WASHINGTON -(Dow Jones)- A U.S. company being targeted by federal regulators for millions of dollars in fines and other penalties is disputing that it deceptively marketed credit cards to consumers.

CompuCredit Corp. (NASDAQ-NMS:CCRT) (CCRT), an Atlanta-based firm that markets cards to people with poor credit histories, said in a statement that the expected claims by the Federal Deposit Insurance Corp. and Federal Trade Commission "are untrue and without merit."

The FDIC and FTC have scheduled a 1:30 p.m. EDT press conference to announce a federal lawsuit and other penalties against unidentified credit-card marketing and debt-collection companies for using "deceptive marketing practices and abusive debt collection tactics."

Neither agency has identified CompuCredit (NASDAQ-NMS:CCRT) as the target, but the firm has acknowledged that it does expect to be the focus of the press conference. The company, however, said it believes it has complied with federal laws and regulations and plans to "vigorously contest these unsupported allegations."

CompuCredit (NASDAQ-NMS:CCRT) specifically cited letters sent by the FDIC to consumers attesting to the legality of the company's marketing materials.

"In fact, the FDIC repeatedly determined over the years now at issue that the marketing materials fully disclosed fees and terms in compliance with consumer protection laws," the company's statement said.

CompuCredit's (NASDAQ-NMS:CCRT) shares tumbled Tuesday, falling more than 23% through 1 p.m. EDT.

-By Michael R. Crittenden, Dow Jones Newswires; 202-862-9273; michael.crittenden@dowjones.com

    (END) Dow Jones Newswires   06-10-08 1333   Copyright (c) 2008 Dow Jones & Company, Inc.