The Consumer Service Bavaria is currently warning of online credit cards: Simple and uncomplicated, without a Credit Bureau check and with a high credit line – this is how various providers attract their customers. However, applicants often receive nothing but a hefty invoice for processing and manufacturing costs. We explain what consumers should look out for and what their rights are.
5,000 dollars credit line and no Credit Bureau
That sounds tempting. But be careful: the supposedly good credit card offer from the Internet can be expensive. The Bavarian Consumer Service is currently warning against dubious providers that rip off consumers with wrong credit cards. The complaints have been increasing for some time, reports the organization.
This is how the fraudsters proceed: online they offer consumers a credit line – usually around 5,000 dollars – with the special feature that they can get this without Credit Bureau information. Only the name, address and an email address are requested. Then just click on the “Order Now” or “Request Now” button – and the credit card is supposed to be on its way to the customer.
Instead, an invoice ends up in the mailbox: 80 to 150 dollars are due for the alleged production of the card. If you reject the registered letter, you will receive an invoice from a collection agency for the processing fee within a few days. The providers themselves owe the credit card to their customers.
Credit card without credit check? That should make you suspicious
If you have already paid the required fee, chances are that you will get the money back. Therefore, check whether the claims are justified and do not pay for a cash on delivery letter of which you have no knowledge – in case of doubt, it is better not to accept it.
The good news: The legal rules for credit card contracts protect you as a consumer. The contract must be signed and comply with various formal requirements. In addition, the right of withdrawal still remains: Every credit contract can be canceled within 14 days, the consumer service announces. You also only have to pay the processing fee and production costs if you have been advised of this in advance.
Basically, you usually don’t get a loan at the push of a button. A seemingly uncomplicated granting of credit without a credit check and collateral should therefore fundamentally make you suspicious.