Saturday, September 13, 2008

It Sure Looks Like A Credit Card Offer, But It Sure Isn't

It sure looks like a credit card preapproval letter for a new "Platinum" credit card with a $10,000 limit for union workers. But it turns out to be nothing of the sort.

Union Workers Credit Services is sending out letters to households at random, union or not, seeking persons to send in $37 as a "Platinum Card" membership fee for what they think is a credit card, but instead only receive a merchandise catalog and a credit line that can only be used for merchandise in the catalog that is often greatly overpriced compared to retail store prices. The information certainly looks like a normal credit card preapproval letter, but then you notice that the federally mandated information about costs of the card are missing from the letter and a $37 membership fee is asked for upfront before you receive more details about the offer. $37 is a big price to pay for a small merchandise catalog. But that's all that your $37 buys. But the company claims that it will credit that amount to your first purchase but nearly item has prices inflated far beyond any $37 from normal retail store prices.

It is typical of both scams and unscrupulous credit card businesses to seek upfront fees. In some cases, some businesses do not even issue any credit card themselves but only search for a card for persons who pay them a fee, something that can be easily done by the individual themselves. But the Union Workers Credit Services is merely an unethical and misleading letter meant to lure customers to a company selling mail order merchandise. Instead of a straight-forward representation of their true nature of business, the letter appears as a credit card preapproval letter that only upon closer examination of some questionable wording tips off the reader that it is a good company to avoid at all costs.

Union Workers Credit Services claims that it offers a low 5% interest rate. However with merchandise selling for absurdly high prices, there is certainly no savings to individuals even if the interest rate is low. And a $10,000 credit line for some persons of lower income status only means years of financial bondage in many cases.

It is very disappointing that the Bush Administration has been so lax going after some companies that take advantage of consumers, let alone the numerous Email scammers. The letter from Union Workers Credit Services is a real good letter to ignore. It is not a real credit card offer for a credit card usable anywhere. Any business can buy some merchandise wholesale and sell the merchandise for full list price and offer a credit line to customers. This is a business with an unethical and misleading way of marketing it's overpriced goods to customers. Avoid this company.


Post a Comment

<< Home