Union Workers Target of Credit Card Scam
Credit card scams appear every day and many of them are right on the border between illegal and legal. In other words, credit card offers may be technically legal but are deceptive because of how information is presented to the consumer. Recently it was union workers in Ohio who were targeted by a credit card scam.
Though the credit card scam targeted a particular group of people, there are lessons for everyone in the story. In this particular situation, union workers were sent offers for credit cards that had low interest rates. To obtain the card a fee had to be paid. The marketing material indicated that bad credit is not a problem. What was hidden in the fine print is where the scam is found.
The first deceptive practice is burying the information that the membership fee does not guarantee the credit card will be approved. The second deception was that approved credit cards could only be used to buy items out of a particular catalogue. The offer was presented as a regular credit card, but it was not.
The Ohio Attorney General Richard Cordray issued a public announcement warning union workers they are being targeted with this particular credit card offer requiring an advance fee. But he also provided valuable information for all consumers concerning how to avoid becoming a victim of a credit card scam.
First he advises people to reconsider accepting any offer that sounds too good to be true. Credit card companies are in business to make money and not to help people. AG Cordray also notes that guarantees a loan will be approved are probably not true. A legitimate financial institution is not going to approve a loan without doing credit checks first. The offers that come in the mail claiming that bad credit is not a problem should be looked at with suspicion.
There are other signs a company many not be legitimate. For example, if you are asked to send a membership fee to a post office box using overnight mail or wire services the chances are the offer is not legitimate. If you have never heard of the company then it’s time to do some research. Sending money to a company guaranteeing a loan or credit card that you are unfamiliar with is a clear path to being scammed.
You can research any company through the Better Business Bureau and the Attorney General’s Office. A legitimate company will have a business license and consumers can verify legitimacy fairly easily. It’s important to review complaints that have been filed against companies also. In the case of the union workers who are being targeted, many have filed complaints with the Attorney General’s office in Ohio so that others are not lured in by the offer.
Finally, you should never provide your personal bank account or other financial information to anyone unless you know for a fact the company is legitimate. Despite all the warnings constantly published, millions of consumers continue to give out their personal financial information to people and businesses they don’t know. To sum all this information up: it’s always better to err on the side of caution.
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