Released on: February 20, 2008, 11:51 am

Press Release Author: Amy Wojciechowski/BBB

Industry: Consumer Services

Press Release Summary: BBB of Eastern North Carolina warns consumers to be weary of
banks that offer to establish or clear debt through the purchase of new credit
cards.

Press Release Body: FOR IMMEDIATE RELEASE

Media Contacts:
Cindy Stranad
cindy@articulon.com
(919) 232-5008 x101

Beverly Baskin, BBB
bbaskin@raleigh.bbb.org
(919) 277-4202


BBB Warns Some Banks May be Trying to Take Your Money
Protect Yourself when Applying for New Credit Cards and Bank Accounts

RALEIGH, N.C. (February 19, 2008) - The Better Business Bureau (BBB) of Eastern
North Carolina warns consumers to be weary of banks that offer to establish or clear
debt through the purchase of new credit cards. Banks that instate payments after
contracts are signed may be trying to take your money.

New Millennium Bank offers secured Visa and MasterCard credit cards for individuals
wishing to establish or repair their credit. After paying $39, the consumer is asked
to send between $300 and $5,000 to secure and establish the account. When consumers
complain, the company refers to the signed agreement. Over 200 complaints have been
filed against this NJ company, which has an unsatisfactory rating.

"Legitimate banks and credit card companies will not ask for money, unless fees are
stated in the original contract," says Beverly Baskin, president and CEO of the BBB
of Eastern N.C. "It is easy for scammers to target those with bad credit and those
who have not established credit, as they are more likely to fall for schemes."

For more information on keeping yourself protected from credit fraud and choosing
the right creditor, visit bbb.org.

About the BBB of Eastern North Carolina:
The Better Business Bureau of Eastern North Carolina is a 501 (c)(6) not-for-profit
corporation serving 33 counties in Eastern North Carolina. The organization is
funded primarily by membership dues from more than 3,200 local business and
professional firms. The BBB promotes integrity, consumer confidence and business
ethics through business self-regulation in the local marketplace. Services provided
by the BBB include, reports on companies and charitable organizations, general
monitoring of advertising in the marketplace, dispute resolution services, and
consumer/business education programs. All services are provided at no cost to the
public, with the occasional exception of mediation and arbitration. Visit bbb.org.

# # #


CONSUMER ALERTS FOR FEBRUARY 2008

In an effort to keep the media and public informed, the Better Business Bureau of
Eastern North Carolina offers monthly BBB Consumer Alerts as potential story or
interview ideas. Readers should take into consideration the importance of the
practice in question and the total performance of a company. This list is current as
of release date. Information regarding business or consumer topics reported here can
be obtained through the BBB office by contacting info@raleigh.bbb.org.

The overpayment scam is still going strong! It works like this. Consumers put
something up for sale, usually online. The crook responds and offers to pay more
than the asking price, but the consumer is asked to wire the difference to someone
else, which is routed back to the crook. One consumer advertised a hutch online, but
had doubts when a responder wanted to pay more than she was asking. She was right,
and two students were arrested.

Clear Your Debt promises to negotiate settlements with creditors. They have also
claimed to be a "Christian" organization, making consumers feel comfortable in
turning over banking and credit information. A consumer paid $260 monthly for 6
months, and the company even instructed her to hang up on creditors. This Texas
company has an unsatisfactory rating. Thanks to the Austin BBB for their
investigation.

Canadian Health & Care Mall sells prescription drugs by e-mail. They give Louisiana
and Canadian addresses, but they are not there. They claim to be a licensed pharmacy
in LA, but they are not. They give names of doctors and universities with which they
are affiliated. The BBB checked, and the claims are false. As tempting as the offer
of cheaper drugs sounds, the BBB recommends that you use extreme caution before
ordering drugs from a foreign country. Be sure to check out the drugs with your
pharmacist or doctor and call the Bureau for a reliability report on the company.
Thanks to the Louisiana BBB for their investigation.

G F Services has a pattern of complaints from consumers who are promised a
government grant for a processing fee of $469. After waiting the requested twelve
weeks to receive their grant, consumers are unable to reach the company by phone or
fax, and e-mails receive no response. No consumer has reported actually receiving a
grant through their services. This Florida company has the BBB's lowest rating.

G A Financial offers debt consolidation loans from $1,000 to $300,000. Customers
complain they send an advance fee of $35 to the company, but never receive the
promised loan. Some complainants reported receiving a package of papers with the
names and addresses of other companies they could contact for a loan. Some simply
receive nothing. The BBB advises against doing business with a company that charges
an advance fee for obtaining or helping you obtain a loan. Any credit services
organization (a term that includes advance-fee loan companies) who charges an
advance fee for such services is in violation of the law. This California company
has the BBB's lowest rating.

New Millennium Bank offers secured Visa and MasterCard credit cards for individuals
wishing to establish or repair their credit. After paying $39, the consumer is asked
to send between $300 and $5,000 to secure the account. When consumers complain, the
company simply refers to the signed agreement. Over 200 complaints have been filed
against this NJ company, which has an unsatisfactory rating.

Another e-mail scam is stating, "It is by the grace of God that I write you." "Rita
Harry," the sender, goes on to say that her husband worked for Texaco for 20 years,
depositing 8.5 million pounds in a "Financial House" in Europe. He died in 2003, and
Rita is in a Russian hospital with cancer. Consumers who respond are asked for bank
account info so money can be deposited in their account, allowing the consumer to
"fund churches, orphanages and widows. Warning: once the account info is given,
"Rita" wipes you out!




Web Site: http://www.bbb.org

Contact Details: Amy Wojciechowski
5540 Munford Rd. Suite 130
Raleigh, NC 27612
(919) 277-4222