Council of Better Business Bureaus, Inc.
Press Release

For Immediate Release

Exercise Caution When Choosing A
Credit Card Issuing Company

April 21, 1997 -- The Better Business Bureau (BBB) system warns consumers in the market for a credit card to use caution when dealing with Credicorp, Inc., a Dallas, Texas company that solicits nationwide. In its mailings, the company informs consumers that they have been preapproved for a "Gold Card" membership with a credit limit of $10,000, and that they should remit $29.95 to receive the card. However, the card can be used only to order merchandise from the company's catalog. It can't be used as a general purpose credit card, such as MasterCard or VISA.

The Dallas BBB reports that the company has an unsatisfactory record because of a pattern of complaints alleging deceptive marketing practices.

According to the Dallas BBB, most complaintants alleged that the company's mailing did not clearly explain that the Gold Card could be used only to order from the company's catalog. The company has changed the wording on its solicitations from earlier mailings.

The company's mailer now notes: "....a $10,000.00 credit limit valid exclusively toward Credicorp purchases." The mailer also states that "full details" will be provided after the consumer remits a $29.95 annual fee.

The company maintains that its mailing is not misleading and offers a money-back guarantee.

The BBB offers the following suggestions when considering a credit card offer:

• If you have a poor credit history, be skeptical if you are offered a pre-approved credit card with no credit check.

• Be sure you understand the details regarding the payment plan, the annual interest, the annual fee and the credit limit.

• If you are not sure of this information, call the issuing company for a full explanation before accepting the card.

• Determine if it is for a general purpose credit card or if there are limits on where you can purchase items using the card.

• Check with your local BBB for a customer experience record for the company issuing the credit card.

• If you have been victimized in a deceptive credit card promotion through the U.S. Mail report your experience to the nearest Postal Inspector. For more information on credit card schemes U.S. Postal Inspection Service.