Credit Card Scams

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Credit Card Scams

While there are many reputable providers of credit cards, there are also many scam artists swimming in these waters. The crooks prey on consumers with problem credit by making an offer that, if you think about it, sounds too good to be true. The magic words that so many rip-off artists use are: “You have been approved for a credit card. You cannot be turned down.”
This sounds similar to the “pre-approved offers” reputable credit card issuers send out. But companies on the up-and-up will tell you that they’re going to check your credit history before offering you a card.
Most credit card providers do not check your credit until they get your application. That’s one reason children sometimes get “pre-approved” offers for credit cards in the mail.
Because they don’t run your credit until they receive your application, legitimate credit card issuers absolutely do reserve the right to turn you down after you apply.

When someone promises that you absolutely will get a credit card, no matter how awful your credit history may be, beware.

In one case, prosecuted by the Federal Trade Commission (FTC) in 2002, consumers received a solicitation in the mail very much along these lines.
The direct mail piece carried the title “Credit Approval Notification,” and it went on to promise that readers had been approved for a $4,000 line of credit. All they had to do was call a toll-free number to activate their credit cards.
Once they called, they were told that there was an advance fee of $199.95 to activate the card. Since these consumers were eager to get credit—and $199 can sound like a small price to pay for access to $4,000 worth of purchasing power—many paid the fee, believing that they’d get a Visa or MasterCard as soon as they paid it.
They didn’t. Instead, they got a packet in the mail that included a “merchandise card” and a catalog. The card was good only on purchases from the catalog, which was filled with “high-priced, low-quality merchandise.”

The people were told that, if they spent a certain amount of money on catalog purchases and paid according to a certain schedule, they’d receive a Visa or MasterCard. Those who went along with the program eventually did receive a credit card, but it wasn’t the unsecured card with a $4,000 limit that they expected. Instead, it was a secured card with a credit limit of just $240.

Those who tried to back out of the program met with all kinds of ploys designed to keep them from getting any money back.
Besides watching out for promises that “you cannot be refused,” another tip-off that you may have received a fraudulent offer is the use of the phrase “premier consumer credit card.” Also keep an eye out for the image of an unfamiliar credit card logo, like the CashPlus logo used by one scammer, which was shown alongside the well-known Visa and MasterCard logos. Both of these techniques have been used by “merchandise card” scammers.
In another common ploy, you receive a mailing that says you’re guaranteed to receive an unsecured credit card, regardless of your credit history—even if you’ve had a bankruptcy.
When you make the call, the telemarketer says you can get a credit card, as long as you have a valid bank account. Once you provide your bank account number, the company debits your account electronically—once, twice, maybe three times.

Also, beware of offers that require you to call a 900 number. You’re paying for that call—and may end up paying several hundred dollars to receive a list of credit card issuers that you can get for free from a credit counseling service or on the Internet.

Ivan_Konstantinov

look like SPAM from USA