All About Credit Cards

The FTC wins another round! Peter J. Porcelli II was ordered to repay nearly $12 million that he had obtained through fraudulent practices. His Florida companies, Bay Area Business Council, Inc. and American Leisure Card Corp., offered low-interest, unsecured credit cards over the phone. Customers who took the bait paid between $199 and $400, which was taken from their bank accounts.

But instead of receiving their credit cards, customers received “dummy” cards bearing the MasterCard logo and the name of one of Porcelli’s businesses. The cards also had non-magnetic black strips to make them look more convincing. The FTC web site describes what happened next:

“When consumers complained or tried to activate the card they were told for the first time that, for an additional fee, they could obtain a debit card, but never a credit card. The defendants also did not tell consumers that in addition to the requirement that they deposit their own money in advance for any purchases they wished to make with the debit card, they would pay substantial fees every time they attempted to use the card.”

Porcelli’s other business interests named in the case include Bay Area Business Council Customer Service Corp.; Bay Memberships, Inc.; Bay Vacations, Inc.; Sr. Marketing Consultants, Inc.; and Special Technologies, Inc.

New Weapon against I.D. Theft?
A credit card crunch coming?