I was contacted by a close friend of mine who was offered a credit card. He called me with the details. Upon listening to him I immediately sensed a scam and did some research. I found numerous complaints against this company and their business practices.
It seems the scam works like this. You fill out credit card requests on the internet. You get denied. Sometime later you receive a call from a not so helpful employee of Phoenix Comsumer Services also known as PCS. This person says they just need you checking account number to confirm that you are a good investment for their pre-approved Mastercard or Visa. You ask for something in writing, they say it's on the way.in the meantime, they deduct $129.95 (one time fee) from your checking account, promise you a low APR, and in our case $1500 credit, with no annual fees.
Then you wait, and wait, and wait. When you finally do get something. It's just an offer, not a credit card, to apply for a credit card. If you apply it's an additional $200.
They do offer a 60 day guarantee, if you're not happy with your purchase. Unfortunately, it will be way after 60 days before you receive the paperwork and realize you have been scammed. They even thank you for your business and send you a post card with a 1-800 number to report fraud, I thought that was a nice touch, very slick move to make you feel secure while they screw you.
Fortunate for my friend, he called me, I researched them, and called him back. They had already got his checking account number from him, so I suggested he call his bank and put a stop payment or block them in some way. He was able to do this for a fee of $20 from his bank, well worth the amount. To be safe that they don't try to deduct it at a later date with a different name, he has changed his account number.
Buyer BEWARE, do NOT give out personal information such as checking account numbers or social security number to anyone who calls YOU. If you call them, and know they are a reputable company that's different. But if they call you, offer you something that's too good to be true, just trying to help you out, and they are a company you've never heard of, BEWARE! Ask what's in it for them? How could $129.95 from me possibly secure a $1500 credit card. They are preying on people who have been denied, have bad credit, and are getting desperate.
Don't fall for it, pick a name brand credit card company. I re-built my credit years ago with Capital One and Providian, I do not reccommend Providian unless it's your only option, their customer service is really bad, and they will nickel and dime you to death. However I've had several Capital One cards and they were good to me.
Good Luck to all in search of credit. May you be informed and choose wisely.
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