PACIFIC, Wash. – You shouldn't have to pay a hefty up-front fee for a better credit card rate, but it happened to a Pacific woman.
Kimberly Powell isn't about kiss off $600, but the company who took that money in exchange for helping her with her credit cards might have some puckering up to do.
We first told you about Kimberly a couple of months ago. Back in February, she received a cold call from Premier Savings out of Arizona, promising to help her save money by closing her high interest rate credit cards and getting her new ones with a lower rate.
"They promise you a pre-approved credit card with a lower interest rate and I think they guy even quoted me seven or eight percent," said Powell.
But after Kimberly paid Premier Savings, they told her they couldn't help after all. The Federal Trade Commission doesn't know enough about the case specifically, but they told us a cold call and an up-front fee sound like a big federal no-no.
"Any offer to provide someone with a credit card but charge them an up-front fee already violated the telemarketing sales rule," said Robert Schroeder with the Federal Trade Commission.
Kimberly was promised a refund many times, but never saw a cent.
She contacted me and I contacted Premier Savings. They never called me back. So, I suggested Kimberly file a complaint with the FTC.
That clearly got the company's attention.
"I got my full reimbursement back including the 20 percent that they said they were going to keep for service fee," said Kimberly.
Make sure all your phone numbers are on the do not call list. Next time you get a cold call, get the number and turn it in to the FTC.
If you're offered help, you shouldn't pay anything up front for it.