Credit card companies constantly send letters in the mail attempting to persuade you to apply for their service. Recently, a different type of credit card company has been sending letters congratulating people on their pre-approved Union Workers Credit Services card. Union Workers claims that the credit card has a $10,000 limit, and can be purchased for just $37.00.
Complaints have been pouring into BBB from almost every state nationwide concerning Union Workers Credit Services. Many complaints state that the consumers assumed that when Union Workers offered them a “credit card” that it could be used as a normal credit card at any retailer or location. However, the consumers soon found out that the card could only be used on Union Workers’ products ordered from their catalog. Other complaints report that the consumers sent the company the $37.00 fee but never received their credit card, and no contact number was found on the letter they received in the mail.
There have been over 300 complaints filed with BBB in the past three years, and over 100 of those have been reported this year. Union Workers Credit Services has an F rating on BBB’s website.
If a letter soliciting a “credit card” company appears in your mail, here are the telltale signs that it is likely a scam:
- The company pre-approves you for a card with a guaranteed credit limit- unless you already have a relationship with the financial institution, there is a slim chance that they know the quality of your credit. Without knowing this, they can not guarantee you a certain spending limit.
- The offer has an expiration date- you should always beware of limited time offers with expiration dates in the very near future.
- There is an upfront/annual fee to pay before you receive your card- most credit card companies do not charge you an upfront or annual fee for your card.
- The company provides inefficient contact information- if the letter does not have the company’s phone number, physical address or website information, you should be cautious about the company, especially if you are sending them money.
- The letter offering you the card is vague and misleading- an official credit card company would explain all the terms and conditions in the letter clearly, and would not leave the consumer to assume what the company is offering.