Advance Fee Credit Cards

The Competition Bureau initiated an inquiry in June 2005, after receiving information from the Federal Trade Commission and the United States Postal Inspection Service relating to a Canadian telemarketing operation that targeted U.S. consumers with poor credit into paying fees for guaranteed credit cards supplied by at least one U.S. bank.

This matter was examined under the deceptive telemarketing provisions, paragraph 52.1(3)(a) of the Competition Act, which prohibits a person engaged in telemarketing from making a representation that is false or misleading.

The Bureau concluded that it would not be in the public interest to continue an inquiry into this company’s practices under the Competition Act as there was insufficient evidence to warrant further investigation.

This inquiry was discontinued on October 31, 2008.

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