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Microcap & Penny Stocks : HITSGALORE.COM (HITT) -- Ignore unavailable to you. Want to Upgrade?

To: Q. who wrote (1838)	6/7/1999 5:45:00 PM
From: Tommy Hicks	Read Replies (1) \| Respond to of 7056

The Scam Man Can From the May 1991 Issue of CardTrak -------------------------------------------------------------------------------- Less than four weeks after filing a major federal law suit to stop rip-off artists, new credit card scams are already surfacing. VISA INTERNATIONAL and MASTERCARD INTERNATIONAL filed a $95 million law suit, April 15th, alleging "that a nationwide network of telemarketing fraud operations have milked consumers and banks out of millions of dollars through phony offers of low-interest credit cards." The civil law suit seeks damages based on allegations of trademark infringement, fraud, unlawful business practices and violation of federal racketeering laws. Perhaps you have been solicited or possibly victimized by these "boiler room" operations. The most common method used in this scam was a simple postcard. The message was simple too: "due to your excellent credit record you have been selected to receive a low-interest credit card with an interest rate of 11.88%". The postcard listed an 800# or a 900# to call for more information. Calling the phone number you would have been greeted by a high-pressure salesman offering to issue or help you obtain a low-interest VISA or MASTERCARD for a fee ranging from $70 to $200. If you fell for the pitch you would have ended up receiving only a small booklet listing a few banks offering low-interest-rate cards. The promise of an 11.88% VISA or MASTERCARD being issued to you was fraudulent. Some consumers did not receive postcards. They were solicited over the phone by telemarketers making cold calls. Unwitting victims were led to believe they would receive a low-interest-rate card with no-annual- fee-for-life by paying a one-time (hefty) fee. The defendants named in the VISA and MASTERCARD suit may also sound familiar: American Financial Services (TN); Better Home Financial Group (MI); American Qualib Corporation (NV); Yost Distributing (CO); Gary & Jim Investments Limited (CA); Hotel Express Marketing of Hawaii (HI). Other business names used include: B.H. Financial Group; Capitol Financial Services; City Capitol Finance Group; Capital Financial; and City Capital. The alleged ringleader was Alabama based Listworld Inc.. The firm allegedly provided mailing lists and phone lists of consumers applying for credit within the past 30 days. The Federal Trade Commission slapped a restraining order on the firm shortly after that suit was filed. However Listworld Inc. has since filed bankruptcy. Did VISA, MASTERCARD and the ITC squash the menace? No doubt they did some serious damage to the fraudulent marketing activity but consumers may still receive credit card offers too good to be true. Last week, an east coast consumer received a postcard from a Clearwater, Florida firm called WMI or Wholesale Merchandise Inc., offering an 11.88% credit card (reproduced on page two). Calling the 800 phone number the consumer was told the credit card offer was part of an extensive consumer financial package worth hundreds and hundreds of dollars but priced at just $199. In addition to receiving a low-interest-rate VISA or MASTERCARD the package included 50% eyewear discounts at Sears and Montgomery Ward stores, 31% discounts on AT&T and Sprint long distance service, 50% discounts on travel expenses, 60% off hotel accommodations and free legal services. Over benefits included access to special "tax audit hotlines staffed by former IRS employees", a shop-at-home service and a grocery coupon service. As an added incentive WMI was throwing in an eight day Hawaiian vacation for two, including airfare and hotel. Part of the $199 WMI consumer package is a list of fourteen banks offering VISA and MASTERCARDs nationally with interest rates between 11.88% and 15.00%. Applications from the banks would also be included. The WMI representative said it took years to research and develop this list. Truth is: RAM Research's monthly credit card table published in major newspapers, including the Wall Street Journal, lists exactly fourteen banks offering VISA and MASTERCARDs nationally, with interest rates between 11.88% and 15.00%. Furthermore this newsletter lists more than 100 issuers offering credit card interest rates below 15.5%, and it cost just five bucks. WMI said the consumer was "pre-qualified" to receive the low-interest cards because of the consumer's "excellent credit record". Truth is: the consumer filed for bankruptcy two years ago and has a credit record riddled with bad debts. When the consumer asked for a brochure outlining the financial package, the WMI representative said: "we do not have anything printed- up but would be glad to explain, over the phone, the details of each part of package". The representative did offer this assurance though: "WMI would never sacrifice its reputation by ripping someone off for a measly $199." The moral to the story for consumers is: when it comes to credit cards "if it sounds too good to be true IT PROBABLY IS". Simply put: stay away from postcard solicitations and 900# numbers offering credit cards. If you receive a phone call from someone offering a bargain credit card deal, ask for written documentation. If your request is refused, hang-up. numbers or personal credit information over the phone unless you know who you are dealing with. Many financial nightmares have occurred by not following this simple advice.