DANGER: Avoid Credit Card Scams
Here’s how to avoid being taken advantage of…
You’ve seen the advertisements: “BAD CREDIT? No Problem!” “Get the Credit You Deserve!” “Even if you’ve been turned down before, We can get you the credit you need!” These ads are often used as bait to lure you in– appealing to your need or desire for financial stability. But be aware, you may not always get what you expect. These days, credit card scams are becoming more prevalent and less obvious to spot. While legitimate credit cards for poor credit can be beneficial in helping to re-establish or build your credit history, deceptive advertising only make matters worse if you’re just getting started– or starting over.
Missing Information
To avoid being taken advantage of, the first thing you should look for is the information LEFT OUT of the offer. Missing information is the first sign that a credit offer could be a scam. Consider the following information that may be missing or hidden:
- No toll-free number;
- 900 phone call costs which can range from $2 to $50 or more;
- Security deposit, application or processing fees;
- Eligibility requirements like income or age;
- An annual fee;
- Interest rates that will apply to an outstanding balance;
- Cannot or will not provide you with your legal rights
Things to Avoid
Credit card scams are not always easy to spot. But here are a few things to be aware of when considering a credit card application or a credit repair service.
- Guarantee offers for easy credit: No credible company would offer you a line of credit without examining your credit report. There are no legitimate guarantees when applying to borrow someone else’s money.
- Phone numbers that begin with the extension ‘900’ are not toll-free: You will be paying to make that phone call. These are often backdoor or garage type scam artists working to get you to divulge your personal identification number to steal your identity.
- Companies that request a fee and offer to repair or clean-up your credit history before they provice the service: This is against the law. Contact your creditors - they will willingly work with you to correct a bad situation. Only patience and responsible credit behavior will restore your credit.
- Avoid any credit repair company that tells you not to contact a credit reporting bureau directly.
- Avoid any company that suggests that you create a “new” credit identity by applying for an Employer Identification Number to be used in place of your Social Security Number. This is against the law! If you follow illegal advice and commit fraud, you also may be subject to prosecution.
- You may be subject to prosecution, if you get involved in an illegal operation or commit fraud, even if inadvertently.
To File a Complaint: The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, an online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
