Attorney General's News Release

Sept. 11, 1998

Nixon warns southwest Missouri residents to be wary of line of credit offer from Las Vegas business

Jefferson City, Mo. — Attorney General Jay Nixon today cautioned residents of southwest Missouri to be wary of mailings or telephone solicitations that promise lines of credit in exchange for fees that can run into the hundreds of dollars.

Nixon said a Willard couple contacted local law enforcement and the Attorney General's Office this week to report that a Las Vegas business had debited their checking account through such a scam.

After receiving a mailing from Consumer Money Markets Inc., the husband called the business to activate a line of credit. The solicitor managed to obtain a checking account number from the man and then proceeded to withdraw $150 for a membership fee, despite the couple saying they did not want the line of credit.

"We contacted the business immediately after learning about this scheme and have been told this couple will receive restitution," Nixon said. "While this particular situation appears to be resolved, their experience should serve as a warning to be very careful about giving out sensitive financial information over the phone to people you don't know."

Nixon said a check with the Better Business Bureau in Las Vegas showed that the line of credit offered by Consumer Money Markets was not a general purpose credit card like Visa or MasterCard, but rather a credit line that could be used only to purchase items from the company's catalog.

"These schemes are a triple whammy to any consumer signing up for them," Nixon said. "First, the company is going to charge an exorbitant membership fee to obtain the card or line of credit. Then, instead of being able to use the card to make regular purchases, the consumer can only use it to purchase overpriced shoddy merchandise in the catalog. If they make a catalog purchase using the line of credit, they'll be charged a high interest rate.

"Finally, these are generally not the kind of people you would want to have your financial information in their possession because they may very well make unauthorized withdrawals," Nixon said.

He said anyone who wanted to report a scam or file a complaint with the Attorney General's Office should call the Consumer Protection Hotline at 1-800-392-8222.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818