Fraudulent and Misleading
Credit Card Offer Scams
ANYONE CAN QUALIFY FOR A
MAJOR CREDIT CARD!
Separated? Divorced? Bankrupt? Widowed?
BAD CREDIT? NO CREDIT? NO PROBLEM!
* Make the call NOW and get the credit
* Even if you've been turned down before,
you owe it to yourself and your family.
* Your major credit card is waiting.
Some companies deceptively advertise major credit cards through
television, newspapers, and postcards which lead you to believe
you can get a card simply by calling the number listed. Sometimes
the number is a '900' number service, for which you are billed
just for making the call.
Ads like this promoting secured credit cards may appeal to you
if you have a poor credit history or no credit at all. And while
secured credit cards can be an effective way to build or re-establish
your credit history, some marketers make deceptive advertising
claims to entice you to respond to their ads.
Both secured and unsecured cards can be used to pay for goods
and services. However, a secured card requires you to open and
maintain a savings account as security for your line of credit;
an unsecured, or more standard, card does not. Typically, a secured
card requires an annual fee and has a higher interest rate charge
than an unsecured card.
Your credit line is then a percentage of your deposit, typically
50-100%, which may range from a few hundred to several thousand
dollars. In addition, you also may have to pay application and
processing fees —sometimes totaling hundreds of dollars.
If you're interested in applying for a secured credit card,
the BankCard Holders of America (BHA) provides a list of
institutions offering secured cards. Send a check or money
order for $4.00 to:
"Secured Credit Card List"
BHA Customer Service
524 Branch Drive
Salem, VA 24153
Trade Commission v. Brent Chivers
The Federal Trade Commission announced the filing of a settlement in
this matter. The complaint alleged that the defendant violated the FTC
Act and the Telemarketing Sales Rule (TSR) by offering consumers major
credit cards, such as a MasterCard or Visa, for a one-time up-front fee.
In addition to paying redress, the settlement prohibits the defendant
from misrepresenting any fact material to a consumer's decision to purchase
any good or service marketed by the defendant. This case was filed a
part of "Operation No-Credit."
Trade Commission v. Efficient Telesales Services Inc., et al.
The Federal Trade Commission announced entry of a default judgment in
this matter, permanently barring the defendants from selling advance-fee
credit cards and requiring them to pay $1.3 million for consumer redress.
The complaint in this action alleged that the defendants deceptively
marketed advance-fee credit cards to citizens with no credit or bad credit.
According to the complaint, the Canadian company promised consumers a
major credit card, charged for it in advance, but never delivered the
Trade Commission and State of Washington v. Westcal Equipment, Inc.,
The Federal Trade Commission announced settlement of this matter as to
two of the defendants and the entry of a default judgment against another
defendant. The settlement bars the two individual defendants from making
certain misrepresentations alleged in the complaint. This case was originally
filed with the State of Washington as a co-plaintiff as part of "Operation
No Credit," a joint law enforcement campaign targeting a wide range
of credit-related frauds.