The New York State Attorney General has filed lawsuits against three Canadian firms he accused of running credit card scams that target people with poor credit and the elderly.
The firms, all based in Montreal, promised credit cards for a fee that had to be paid up front, then failed to provide promised benefits, AG Eliot Spitzer said.
Instead of credit cards, the firms sent people advice for improving credit, credit card applications or catalogs offering merchandise that could be purchased by making installment payments, Spitzer said. He said the offers were deceptive and fraudulent and violated state laws.
In some cases customers paid $200 for what they thought were Visa or MasterCards, only to receive plastic cards that looked like credit cards but were not, he said. In other cases they received nothing for their money.
The AG’s office said the three firms did several million dollars worth of business with thousands of customers in New York and other states over the last two years. The firms solicited customers by mail, through the telephone and by advertising.
The three firms are: Alini International Marketing, Telehublink Corp., and 3557561 Canada Inc., which Spitzer said did business as Platinum 2000, Continental Benefits Group and Alliance for Family Security.
The lawsuit seeks refunds, civil penalties and a court order requiring the firms to post performance bonds to continue operating in New York State.
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