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Court Closes "Peoples Credit First"

FTC Charges Company Deceived Credit Card Applicants

Peoples Credit • Consumer complaints • Consumer First complaints • Consumer Preferred complaints News • FTC Sues Peoples First

November 20, 2003
A federal district court has temporarily halted the business practices of Tampa-based Peoples Credit First LLC and Consumer Preferred LLC (formerly known as Consumer First LLC) for allegedly operating an advance fee credit card scam.

The Federal Trade Commission filed charges against the defendants citing that they violated the FTC Act by representing that consumers were likely to receive unsecured, a major credit card, like a Visa or MasterCard, in exchange for an advance fee payment. The FTC obtained a temporary restraining order with an asset freeze.

The FTC alleges that the defendants’ fraudulent business practices resulted in injury to thousands of consumers throughout the United States. According to the FTC, the defendants mail letters to consumers that promise a “platinum card” with a $5000 credit limit and no initial “APR” for a $45 fee, or $49 for “rush delivery.”

The defendants’ letters carry the distinctive title “ACCEPTANCE CERTIFICATE” and inform consumers that they already have been approved to receive the platinum card with the substantial credit line. The defendants’ letter allegedly also states that no application or credit check is necessary as long as they sign the acceptance certificate and return it along with a check or money order.

The FTC alleges that these solicitations led consumers to believe that they would receive a major credit card, like a Visa or MasterCard. Instead, what they allegedly received was a package that contained a merchandise catalogue, a brochure describing how to order from the catalogue, and a thin, plastic card with the consumers’ name and an account number on it.

After receiving the package of materials, many consumers had difficulty contacting the defendants to cancel, and those who were able to contact the defendants were denied refunds or told that they were no longer entitled to a refund, the FTC alleges.

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