Safety Warning: "Rachel with Cardholder Services" is Dangerous!

You can consider this a sequel to my earlier post about "Tom with Home Protection". For a while now my home has gotten calls from "Rachel with Cardholder Services", and they are similar to Home Protection and just as crooked. I just got another call from Rachel this morning, and was inspired to Google her opening line. When I saw the results, I knew I had to post about it to keep you all informed.

Here's the scoop: Cardholder Services (which starts out by using robocalling - "Rachel" is just as fake as "Tom") claims it can lower your monthly interest rate on your credit card debt. They do this by asking for the phone number on the back of your credit card, whereupon they set up a three-way call between themselves, you, and the credit card company. Cardholder Services then asks for your rate to be lowered.

Do you see the problem?

It's very simple: anyone could do this all by themselves by simply calling the number on the back of their card without getting Cardholder Services involved. Similar to FreeCreditReport.com, Cardholder Services scams the ignorant by charging them for things they can do themselves for free. Cardholder Services will lower your rates, all right - and then you'll be charged as much as 1000 dollars for letting them do something you could've done yourself.

Like Home Protection, Cardholder Services is secretive and nearly impossible to track. And while this sort of scam may technically be legal, robocalling without the consumer's written permission is not, thanks to a law the Obama administration signed in September 2009. The company thought to be responsible, DHC Financial Services Group, was found over two years ago, but they dodged a bullet by settling and making a "promise" not to continue. Of course, they simply dissolved the company and started a new one, and Rachel continued trying to steal people's money.

Do not EVER listen to or believe a robocaller. Because of the 2009 law, all remaining robocallers randomly calling people are working illegally and their products and services cannot be trusted.

http://www.dailyfinance.com/2009/11/17/hanging-up-on-rachel-robo-calls-have-been-banned-yet-the-phone/