Home Members Tools Credit Cards
   

  • Beware Credit Card Telemarketing Scams

    The Federal Trade Commission recently shut down a telemarketing scam following consumer complaints of being sold a bogus credit card. In the scam, telemarketers called consumers whoíd recently applied for an online payday loan. These consumers were offered a credit card with a $9,500 credit limit if they agreed to pay an advance fee of $99 and a monthly fee of $19.

    Consumers were told the cards Ė the Platinum Trust Card and the Express Platinum Card Ė could be used anywhere most other major credit card were accepted. However, these general purpose credit cards could only be used in a specific online store that offered overpriced products and often in bulk quantities. In addition, the cards were not reported to the major credit bureaus and would not help consumers improve their credit scores as was initially promised. Some consumers had their accounts debited for the upfront fee even though denied the card offer.

    Avoid Advance-Free and Guaranteed-Approval Credit Cards

    Itís illegal for businesses to offer a credit card or loan in exchange for an upfront fee. So, if a company makes such an offer, thatís one of the first signs that youíd be signing up for a scam product. Annual fees are normal with credit cards, but this fee is usually added to your credit card balance after youíve applied for and have been approved for the card.

    If you have bad credit, you might be tempted to accept any credit card that accepts you. However, you should still investigate each credit card you consider applying for. Credit card issuers are required to send a credit card disclosure with each credit card offer. This disclosure lists the important details of the credit card like interest rate and annual fee. If you receive a credit card offer by phone, ask the card issuer to mail a copy of the disclosure or to give you the web address where the disclosure can be located. That way, you can make an informed (not impulsive) decision about the credit card.

    Beware any credit card that guarantees approval regardless of your credit history before youíve even submitted an application. Secured credit cards and prepaid cards are sometimes marketed this way, but with these cards your credit limit and spending limit are typically equal to your deposit. Furthermore, you can be turned down for a secured credit card or even a prepaid card in some instances. Itís rare, but it happens.

    The FTC stopped this particular scam, but others may still be operating. You can avoid many scams by using common sense. If it seems to good to be true, it probably is. Take time to investigate all credit card offers, especially unsolicited ones. A reputable credit card issuer wonít take an offer off the table just because you take the time to understand it better.

    If youíve already been a victim of a credit card telemarketing scam, report it to the Federal Trade Commission at FTCComplaintAssistant.gov or 1-877-FTC-HELP and to your state Attorney General.

    Source: Federal Trade Commission
  • Disclaimer

    Information in these articles is brought to you by Finance Globe. Banks, issuers, credit card, and other companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles and is further subject to our terms and conditions.
  • Recent Headlines and Articles

    ChrisB

    Use the Internet to Compare Service Professionals

    Are you in desperate need of an accountant? How about an attorney? What about a consultant for your business? If you find yourself searching for any type of service professional, you... read more
    ChrisB September 30th, 2014, 09:29 AM
    ChrisB

    Important Questions for your Life Insurance Agent

    Finding a life insurance agent you can trust is not always a simple process. Just because somebody is licensed to sell you a policy does not mean you should do business with him or her. Instead, there are... read more
    ChrisB September 29th, 2014, 09:49 AM
    ChrisB

    Common Ways you are Wasting Money on Food

    Even if you have a food budget, you may soon find yourself wasting money. Over the course of a year, this can add up to hundreds of dollars or more of wasted cash that could have been... read more
    ChrisB September 26th, 2014, 09:42 AM
    ChrisB

    How to Save on the Cost of Home Repairs

    If you own a home, you know that things can and will go wrong from time to time. From a broken furnace to a clogged pipe (and that is just the start), you never know when something will come up.
    ... read more
    ChrisB September 24th, 2014, 09:50 AM
    ChrisB

    How to Spend Less Time on your Budget

    Most people understand how important it is to have a budget, regardless of how much money they earn. That being said, many people shy away from this because they donít want to spend the time required to keep... read more
    ChrisB September 22nd, 2014, 09:29 AM
    ChrisB

    Self Employment: What you arenít Thinking About

    Is the thought of self employment running through your mind? Are you ready to leave the corporate world in the past and branch out on your own? If you find yourself leaning in this direction, it is imperative that you... read more
    ChrisB September 18th, 2014, 08:14 AM
    ChrisB

    Easy Ways to Save on Tech Devices

    Are you in the market for a smartphone or smartwatch? How about a tablet? Regardless of the tech device you are shopping for, you know one thing to be true: you are not always going to find something that... read more
    ChrisB September 17th, 2014, 09:23 AM

 

 

 

Credit Cards | Finance Social Network | Credit Card Reviews | Markets
About Us | FG on the Web | Sitemap | Privacy | Terms | Contact


Copyright © 2014 Finance Globe. All rights reserved.