No union in Union Workers Credit Services
Thousands of union members have received solicitations from the Texas-based Union Workers Credit Services, which has no official ties to any union or the AFL-CIO.
The false advertising and deceptive solicitation suggest union members are pre-approved for their "Platinum" credit card, which is not a general purpose credit card, but instead a paper card that can only be used to make purchases from their limited catalog of merchandise.
Unions have received many calls from members about the company's offer. The Fort Worth Better Business Bureau (FWBBB) has logged 496 complaints and thousands of inquiries over the last three years.
"The initial advertising builds an expectation that goes unmet," said John Riggins, FWBBB president, who thinks the firm is targeting people with a history of credit problems. "People think they're getting a credit card from a company affiliated with unions, but there is no affiliation and they don't get credit cards."
Consumers are charged an upfront fee of either $37.00 or $95.00 before learning that the paper card can only be used for their catalog. Many consumers paid the upfront fee and never received anything from Union Workers Credit Services at all.
New York Attorney General Eric T. Schneiderman launched an investigation and determined that Union Workers Credit Services was targeting financially vulnerable consumers through direct mail solicitations, while causing consumers to believe they were affiliated with their labor union, making them more likely to apply.
Consumers should use caution when considering any credit card offer that requires you to pay a fee before you can learn all the details of the offer.
The Union Plus Credit Card program is the only one endorsed by the AFL-CIO. For more information on this card visit UnionPlus.org/CreditCard.