The Scams Associated with Secured Credit Cards
Contributed by Stephanie Litaker
Scams galore associated with secured credit cards
Scams are everywhere - and secured credit cards are no exception. The scams surrounding secured credit card offers are so readily available that the Federal Trade Commission has started taking action against any company that uses false advertising to entice people to take advantage of secured credit cards. These advertisements are often seen on television, in newspapers, heard on the radio, and many people receive the advertisements through the mail.
These offers will usually include information on unsecured credit cards as well as secured credit cards, but often they will not specify whether or not the credit card is secured or unsecured. This is nothing more than an attempt to bring people into their scam, and lure them into temptation. Where's the scam in that? Well, these offers usually include a telephone number to call, usually a "900" number - which is not a toll-free call, but rather is a pay-per-use telephone number.
The company running this scam will then be able to bill you whatever they choose, simply because you called the number. Sometimes the number listed will charge you a small fee, and will then instruct you to call yet another "900" number, for which there is yet another charge.
Look for the missing information and avoid secured credit card scams
The advertisements that are now being regulated by the Federal Trade Commission will usually not include vital information that the recipient should know. The missing information usually includes:
- the amount you will be charged for calling the "900" number. This can range from a few dollars up to as much as several hundred dollars.
- whether or not the credit card is secured, or unsecured. If it is a secured card, these ads will typically not tell you how much you will need to deposit with them to receive a secured credit card.
