Prepaid Credit Card Rip-offs

Posted by: Sally S. | Jan 14,2008

Prepaid credit cards are becoming increasingly popular. A prepaid credit card looks like a credit card, but it works like a debit card. People with poor credit, or no credit, may not be able to get a traditional credit card but might be eligible for a prepaid credit card.

 

A prepaid credit card can be a great alternative to a traditional credit card. But, there are a few things you need to know before you apply. My mom called today and told me about an article in a senior publication that she thought you’d want to know about.

 

According to the magazine article, there are some unscrupulous prepaid credit card companies that will take your money- and they don’t always provide you with a valid credit card. One prepaid credit card company out of California is getting dinged, online and off, for their poor treatment of new customers.

 

Customers are complaining that the prepaid credit cards are a rip-off. According to reports, the company debited $160.00 from customers’ checking accounts without first confirming the transaction. When customers tried to cancel the card, they had to jump through hoops, sending bank statements to the prepaid credit card company- who just took their money- to prove that the money was debited from their accounts. Huh?

 

Then, the customers only received partial refunds- or no refunds- of the money taken by the prepaid credit card company. Ouch. Of the partial refunds received, online complaints indicate their refund checks (no, no automatic deposits were made for the refunds) bounced. Hoo, boy.

 

Compare prepaid credit cards from reputable companies that won’t rip you off and apply online now.

 

Thanks, mom! 

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