Fake Bank Scamming Victims Out of Hundreds
People deposit up to $900 for semi-secured credit cards they never receive
By Ruth Brown, Newser Staff
Posted Aug 19, 2013 6:21 PM CDT
These credit cards are real.   (AP Photo/Elise Amendola, File)

(Newser) – A new scam is bilking people looking to rebuild their credit rating out of hundreds of dollars by offering semi-secured credit cards then pocketing their deposits, TheStreet reports. The Treasury has sent a letter to US bank executives and federal and state regulators warning them of the scam, run by an outfit named Freedom Gold Club, which claims to be associated with a bank called Freedom 1st National Bank—which doesn't exist—and also sometimes Credit One Bank, N.A., which does exist but isn't actually involved.

Freedom Gold Club contacts people by mail, offering them the secured cards for a deposit of $500 to $900. When victims send in the money, "the checks are cashed by an individual using the name of Bradford C. Ege II, and the victims never receive the anticipated credit card," says the letter.

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Showing 3 of 16 comments
Sep 21, 2013 2:01 PM CDT
listen to him, this is the truth that can be researched.
Aug 20, 2013 9:10 AM CDT
I would like to add, that a offer for a new card CAN have an old debt added to your balance with the first bill. Read the fine print before sending back an application.
Aug 20, 2013 7:25 AM CDT
Sounds on the level.