Consumer complaint received 2024-01-25
Product: Credit card — General-purpose credit card or charge card
Issue: Getting a credit card — Application denied
Company: Atlanticus Services Corporation (NC)

For starters, my credit right now is terrible. I had a XXXX XXXX XXXXXXXX, much XXXX / unemployment, everything, I am starting the process of negotiating things, and coming to terms with my creditors, did not expect to be offered a credit card. 


I received an unsolicited PREQUALIFIED offer that says this offer is based on information in my credit report, indicating that I MEET certain criteria. They do not specify what the criteria is. They do not specify where that criteria can be found. 

. They send me this offer, which is a 30 %, god-awful predatory high interest rate, 33 % for transfers! They charge for the first year anywhere from XXXX  XXXX {$170.00} in an annual fee, there after {$49.00}, and an annual {$150.00} account maintenance fee, at {$12.00} per month, so I accept it right off the bat Im in debt to them without charging a dime..

In what that they sent me there is no criteria specified, with the exception of where they lay out what prequalified definition, prequalified means that information in your credit report indicated that you met certain preestablished credit criteria. Final approval is not guaranteed if you do not meet all acceptable criteria, including adequate proof of ability to repay. Income verification through access to your bank account information may be required.. These are the only stipulations that are specified here and therefore the only ones in this contract. Everything here is presented as its yours if you want to accept it. it is obvious this is a product for people with bad credit. So right from the beginning theyre going to charge you XXXX for a {$1000.00} credit limit, youll have {$820.00} of available credit and from day one owe them {$120.00} at 29.99 % interest rate. For many people who rush in this is predatory! But I needed to reestablish my credit, so I am willing to do it. I read it, I had my son read it, and have now had my credit rating harmed further. 
In big bold letters, they say I am prequalified, NO SECURITY DEPOSIT REQUIRED. if Im prequalified, that means I qualify. They didnt reject me for income verification, But for what is in the very credit report that they say they used to determine that Im qualified.

I did not apply for this offer, they solicited me, deceptively advertised to me, and pulled my credit when I went to enter the acceptance code! I assumed they were to make sure that I am who I say I am, that I live at at the address I say I live at, etc. That makes perfectly good sense. 

I did not enter an application code, I entered an ACCEPTANCE CODE, these are their words. Pulling my credit thereby harming my credit, further, without disclosing that if there was recent negative information ( and defining recent ) the offer would would not be valid On the contrary, they indicated that they are familiar with my credit report, thereby issuing me an acceptance code, and telling me Im prequalified But yes they turned me down! 

Delinquent or derogatory status on accounts is too recent Too few bankcards with high credit limit Balances on bankcards are too high compared with credit limits Lack of real estate secured loan information Note, this offer expires XX/XX/XXXX, I received it and applied the same day, XX/XX/22 so them saying that this is based on some recent information is entirely untrue, it wasnt like I sat on it for XXXX months. They knew my credit score was very low, and they solicited me and then Im not willing to honor the terms they set forth.

And what is sad is that I am willing to pay it, because I need a source of credit. I read The fine print, I read about the fees, and I am willing to do it, but they drew me in falsely.