RGCS Credit Solutions

I received a telemarketing call on 4/20/00 from a representative of RGCS. He informed me that he was offering credit solutions and after a lengthy question and answer conversation about this offer, he stated that I would qualify for and receive a non-secured major credit card with a credit limit of $2,500. He stated that all I had to do was authorize RGCS to do a direct check withdrawal from my checking account in the amount of $200 and this would be applied to my credit card purchases. There would be no other fees involved. On 5/19/00 the withdrawal was made.

Once I received the packet I realized that what the RGCS representative had said was not true and was very deceptive. The certificates at $100 each would not be applied to a major credit card purchase but to a merchandise card purchase from their catalog. I tried to contact them over the phone, but they have only an answering machine and would never call back. Then I sent them an e-mail asking for a refund and they answered that my $200 is nonrefundable.

I am now out $200.00 unless I purchase overpriced products from their catalog. On the other hand I am afraid that purchasing from their catalog is actually losing more money because, most likely, they would never send the products. Moreover, I am not the only one who is complaining about this. I found on the Internet a complaint on ConsumerAffairs.Com stating the same thing.

I went online to see if I could find out any information about a credit solution company I got involve with sometime in February 2000 called RGCS. I was amazed to find out that I was not the only one who had been scammed by this company. My story is similar to Joanne of Beltsville, MD. I received an email about trying to restore my credit. It included a 1-800 number, and I called it.

Luke explained the program to me. I was a little skeptical at having to put $200.00 into this program but I was assured that I could cancel with a $35 fee, meaning I would receive $165.00 back from the $200.00. (I had to authorize an electronic purchase right out of my bank.)

In this packet that I was to receive, I was to get two free airline tickets, a credit card for $2,500, coupons and two $100 gift certificates. When I received my packet, I was very disappointed to see that the credit card and gift certificates that I received was for purchases made from their catalog, and I would still have to pay down payments of cash on items that I would purchase.

I called the next day for my guaranteed money back. I was then told by a representative named Michelle that in order to receive my money back, I would have to apply and receive six rejection letters from various credit card companies in order to receive my money.

It took some time but I have my six rejection letters but now the people from RGCS are nowhere to be found. Every number I have linking me the RGCS is either disconnected or is constantly busy.

My husband received the same telemarketing call as Joanne and fell victim to the same scam. When I got home from work that evening he told me all about it. We decided at that point to call them the next day to cancel the transaction.

My husband had agreed to let them make the $200.00 withdrawal on the third of April and it was only the middle of March so we figured we should have no problem accomplishing what we wanted to do -- cancel the transaction. On six occasions we tried to contact them and each time received the same pre-recorded message: "Our normal banking hours are 9 to 5 Monday through Friday." We left a message each time instructing them to cancel the transaction and to call us but to no avail.

The third of April rolled around and we found out that they had, in fact, withdrawn the money. We were outraged and continued to attempt to reach them by phone. Remarkably we were able to reach them the day after the withdrawal was made. Anyway, I finally spoke to a young man who did not provide his name and couldn't tell me why they were not available during their "normal banking hours" prior to the date of the withdrawal. In fact, he couldn't even describe to me what exactly my husband had paid for. All he said to me was that in order for us to get our $200 back, we would have to be denied credit by at least 6 creditors.

I was more baffled than ever since my husband thought he had been promised an unsecured credit card with a limit of $2,500. Is this story sounding a little familiar?

I was passed to a woman who would not provide her name and immediately things got heated. When I asked her why her company couldn't be reached by telephone during their regular hours, she had no answer and went on the defensive. It was at this time that I was told that I could cancel my account but it would COST ME $35 and I would still lose my $200 as well.

My response to her was, and I quote "you've got to be freakin' me". Apparently I broke some major yet unspoken rule regarding the word "freakin" because she proceeded to holler at me and demand that I had better calm down and she didn't have to take that from me. She'll take my money but not my comments. I even tried telling her that the money she took from us was our kids' grocery money (it was) and she said (actually she hollered because at this point she was talking over me) "I have kids and that means nothing to me."

In desperation I tried one last ditch effort. I asked her to put herself in our shoes. Her answer: "I would have asked questions". You really had to hear the tone of her voice for this one, in order to appreciate the snide and condescending meaning behind the words. Translation: "We are good at what we do and screwed you because of it". I ended the call with "I'll be reporting you to the proper authorities" and hung up on her.

At this point I should mention that the information the bank had in reference to the ACH withdrawal was Confinity Paypal, 1-727-546-5780. The telephone number matches the one my husband was given the night of the original call but does not match anything Paypal has as one of their numbers. I know this because I contacted Confinity Paypal via online and made a complaint with them. They've gotten back to me with the following information: they do not solicit via telemarketing, they do not know that phone number and they have reported it to their fraud department for investigation. Their services are free so they wouldn't have needed $200. This makes me wonder how RGCS was able to put the withdrawal through my account using Confinity Paypal as their company name?

Our only comment would be our usual -- Dawn should have sent a certified, return-receipt-requested letter instead of wasting so much time on the phone. But wait, it gets better. Here's a follow-up from Dawn:

This is the email response I received from RGCS. It is my sincerest hope that you will investigate this company and that your conclusions will allow them to be yet another deserving entry in your Rogues Gallery. They have certainly gone out of their way to enlist themselves there.

"You a scum of society. Just because you were calling us out of our business hours or were unable to receive a phone call out of our business hours that don't make us a froud. that makes you a flamer and scandalist (sic) customer who would do anything and everything blame the company when you are the one who can't follow simple rules. another thing is that we are not a bank, there for (sic) we aren't issuing you no visa nor master card (sic). we are RGCS and we have approved you for an RGCS CARD with $2500 credit limit.

Thank You for your e-mail and please try calling us during our normal business hours as we also have hired an additional representatives (sic) to assist every one (sic) in faster time period."
RGCS

I was told in a phone conversation that I would receive a credit card with a $2,500 limit by agreeing to allow RGCS to withdraw $200.00 from my checking account. I would then receive a card and could use the $200.00 to pay on a card I already held. I would be guaranteed the card and would receive the package within 8 days by mail. I have not seen the package and when I spoke with Michelle on the phone today, 5/30/00 she was very rude and verbally attacked me. I was told the only way I could use the $200.00 was on their catalog, which was not what I was told when the first conversation took place.

My faith in telemarketing has plummeted to an all-time low. I will never participate in phone sales again.

I received a telemarketing call on approximately 2/3/00 from Robert M, a representative of RGCS. Mr. M informed me that he was offering credit solutions and after a lengthy question and answer conversation about this offer, Mr. M stated that I would qualify for and receive a unsecured credit card with a credit limit of $2,500. He stated that all I had to do was authorize RGCS to do a direct check withdrawal from my checking account in the amount of $200 and this would be applied (sent in the form of a gift certificate) to my credit card purchases. There would be no other fees involved.

He stated that I would receive a packet with a merchandise card in 10 days from the date of withdrawal and the credit card would be available shortly thereafter. On 2/14/00 the withdrawal was made and it cleared my bank on 2/15/00. I did not receive the packet until 3/9/00.

Once I reviewed the packet I realized that much of what Mr. M had said was not true and very deceptive. The certificates at $100 each would not be applied to a major credit card purchase but to a merchandise card purchase from their catalog. To use these certificates for payment on a purchase I would then have to send in a "down payment" with the order based on the amount of the purchase. The minimum purchase must be $50. I would have to purchase from their catalog of overpriced items almost $300 worth of merchandise to be able to use these two certificates with almost $100 as the deposit to be sent in with the order.

I contacted them on 3/10/00 and spoke with a customer service representative named Michelle (would not give a last name). I explained to her the situation and told her about Mr. M's deceptive telemarketing and that I was guaranteed a unsecured major credit card with a $2,500 credit limit and no additional fees, which was supposed to be following the packet in the mail. She said that she would have a supervisor, Steve or Bob, call me. I asked what their last names were and she said she did not know.

She called me back about 10 minutes later and left a message on my voice mail indicating that she checked the tape recording of my initial conversation with Mr. M and that he did not say that the major credit card would be in the packet.

I called again on 3/14/00 at 9:50 a.m. and spoke with who I believe is "Michelle" in customer service.

When I told her that I wanted a complete refund because Mr. M had been very deceptive with his telemarketing and I wanted to listen to the tape she indicated that the only part of the conversation that is taped is the final confirmation of information and authorization for the direct check deduction. She stated that the only way I could get a refund was if I was denied a major credit card and that they did not guarantee that it would be a unsecured card.

I feel this company is very deceptive overall and their telemarketing efforts border on "scams." I am now out $200.00 unless I purchase overpriced products from their catalog that I have no use for. I can't believe that I agreed to this. I asked the representative, Mr. M, all the right questions concerning this $200 deposit and he outright told me that the certificates could be applied to the major credit card. He never said that they were going to be merchandise certificates.