Consumer Comeback Blog

Fake ‘Platinum Credit Card’ Companies Pay $7.5 Million Settlement

Three individuals allegedly involved in selling fake “platinum” credit cards and illegally debiting consumer’s bank accounts have agreed to pay more than $7.5 million to settle Federal Trade Commission charges. As part of the settlement the Philadelphia-based trio will be permanently banned from telemarketing or selling any credit products or services.

According to a written statement from the FTC, the defendants allegedly called online payday loan applicants and offered a purported general-purpose credit card with a credit limit of up to $9,500, in exchange for an advance fee of up to $99 and a monthly $19 fee. They also allegedly claimed that the credit cards could be used at any location that accepts Visa, MasterCard, or American Express, when in reality they cards could only be used to purchase off-brand, overpriced products at the defendant’s online store.

The group also allegedly told consumers that the cards would help rebuild their credit because they reported the payment history to the major credit bureaus.