Recently I received an “offer” from a firm indicating it would approve a new Visa or MasterCard account if I agreed to assume responsibility for a debt allegedly owed to another credit card firm. The first firm, which apparently was the original creditor, apparently sold the alleged debt to a third party. It was this third party that was making the “offer” to open a new credit account.
Of course, there was a “hook.” If I agreed to assume financial responsibility for the alleged debt and if the third party opened the new account, the credit limit would be for the alleged debt plus a significant “service charge” for the transaction. The finance charge was listed at 29%.
Another questionable aspect of the matter was no guarantee a credit line would remain open as the account was paid down. Thus, if the initial “credit line” was $500 to cover the outstanding debt and service fee, as the balance were paid down and/or off, the credit limit could be decreased so as to prevent it from being used for new purchases.
Obviously, I shredded the “offer” package as I did not owe the initial debt. I wonder how many people will consider this a relief of some type and agree to the “offer.”
chris30546
1
Recently I received an “offer” from a firm indicating it would approve a new Visa or MasterCard account if I agreed to assume responsibility for a debt allegedly owed to another credit card firm. The first firm, which apparently was the original creditor, apparently sold the alleged debt to a third party. It was this third party that was making the “offer” to open a new credit account. Of course, there was a “hook.” If I agreed to assume financial responsibility for the alleged debt and if the third party opened the new account, the credit limit would be for the alleged debt plus a significant “service charge” for the transaction. The finance charge was listed at 29%. Another questionable aspect of the matter was no guarantee a credit line would remain open as the account was paid down. Thus, if the initial “credit line” was $500 to cover the outstanding debt and service fee, as the balance were paid down and/or off, the credit limit could be decreased so as to prevent it from being used for new purchases. Obviously, I shredded the “offer” package as I did not owe the initial debt. I wonder how many people will consider this a relief of some type and agree to the “offer.”
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