May 5, 2009
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News: PA Sues For Consumer Fraud
Pennsylvania’s Attorney General Tom Corbett filed a consumer protection civil lawsuit against Richard E. Wood and his business for deceptive practices against individuals with poor credit. Wood, doing business as New Card Services, at 4237 Buffalo Road, Suite #301, Erie, is accused of luring in customers with a “guaranteed” credit card offer. Mr. Corbett said Wood and New Card Services advertised a Visa or MasterCard credit card carrying a $7,500 credit limit with approval “guaranteed” and saying that bad credit was “okay.” Wood and his company charged customers application and processing fees of $60 to $110 and in return provided them with a list of credit card providers. The list is public knowledge and easily accessible at no charge.
Wood advertised in newspapers across Pennsylvania listing a toll-free number. When consumers called the number, they were told by a New Card Services member that they were “absolutely guaranteed” approval and any negative credit issues would not matter. If the consumer wanted to complete the application form, they were then charged the application and processing fees. The application form included a 30 day money back guarantee if they were not approved. Instead of receiving a credit card, applicants received a list of credit card providers. Consumers were also told that they were not eligible for the refund unless all the organizations on the list had rejected them.
The Attorney General said they have filed several accusations against Wood and New Card Services for their credit card scam including violating Pennsylvania’s Consumer Protection Law and Credit Services Act, failure to provide the required financial disclosure information related to credit services, neglecting to inform consumers of their legal right to cancel any credit service contract within five-days, and failure to register a fictitious business name with the Pennsylvania Department of State. The lawsuit is seeking full restitution for all consumers as well as fines and penalties of up to $1,000 for each violation. Violations involving individuals of 60 years or older, would bring up to $3,000 in penalties.