Imagine that! Only $199.50!

A press release received in this office from the Bankcard Holders of America (BHA) a short time ago headlined the fact that prosecution was finally under way against 35 companies marketing information about credit card companies.

"These companies seduce consumers with postcard or telephone solicitations promising Visas or MasterCards with low interest rates, no fees, and $5,000 credit lines," said BHA Director Elgie Holstein. "Instead all they get is a short list of a few banks offering lower-than-average rates on credit cards."

The cost of these lists ranges from $98 to $200 each from these companies.

The same information is available from BHA for $1.50!

We became aware of this scam here at BANKERS' HOTLINE because we got a call from one of the companies trying to sell us a list! For "a one time only charge of $199.50", we were told, we would get a list showing us how we could just transfer everything on our old Visa account to a new one charging just 11.8%. All they needed was to verify our address and name, and would we please give them the expiration date and the number on our present Visa Card! (They were even nice enough to tell us that was "the long number that starts with a '4'!"

The telemarketer we talked to was located in northern New Jersey. BHA tells us that activity has also been reported from Colorado, North Carolina, Virginia, New York, Pennsylvania, Oklahoma, Utah and California.

The scam, of course, is that you receive the list?but then you must make application just as you would for any credit card. The marketers lead you to believe that it's almost "automatic." The sales pitch included the information that I would "just have to write your new account number on your statement and it would automatically be charged to your new account at 11.8%."

The president of a bank in Arkansas received a postcard solicitation, and was curious enough to send off for the information and allow his card to be charged so he could find out what the offer was. Imagine his surprise when he found out his own financial institution was one that they were pushing-with no authorization and no permission! That telemarketing operation was shut down pretty quickly!

Make sure your customers realize this is not an offer by financial institutions or the credit card companies.

Bankcard Holders of America is a non-profit consumers organization. If you or your customers want a list of financial institutions offering Visas or MasterCards at interest rates of 16.5% and below, or a list of cards featuring no annual fee, write BHA at 560 Herndon Parkway, Suite 120, Herndon, VA 22070. (There is a fee of $1.50 for each list to cover postage and handling.)

(Ed. Note-If you know of schemes like these, or want a list of the 35 companies?36 including the one that called us?you may contact us at 215-874-5522, or call BHA direct at 703-481-1110.)

Copyright © 1991 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 2, No. 1, 1/91