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Texas sues credit card companies Associated Press AUSTIN - Texas sued several Florida-based credit card companies today, alleging they engaged in deceptive marketing practices by promising families major credit cards when in fact the cards could not be used for regular retail purchases. The companies targeted mostly Hispanic families and asked for $299 fees upfront, Texas Attorney General Greg Abbott said. "We want to make it very clear to consumers not to be enticed in by these bogus credit card offers," Abbott said. "We also want to make it very clear to businesses that offer credit cards that if you use false, misleading advertisements, that try to entice consumers into spending money up front for a credit card, that you're going to have face the consequences." The companies named in the lawsuit are LatinCard Plus, LLC of Doral, Fla.; ProLine Card LLC of Miami; Call Center Express Corp. of Miami; Tradex LLC of Miami; and Julio Cesar Sandoval and Carlos Felipe Mendez, who serve as managing members of ProLine and Tradex. Mendez is also the registered agent and manager of LatinCard, the lawsuit said. Mendez and Sandoval could not immediately be reached for comment. Abbott said his office has received more than 100 complaints from Texas residents and he expects there could be more victims. He said consumers were led to believe they were getting a major credit card with limits of $2,000 or more, and that the cards could be used at automated teller machines. He also said the companies led consumers to believe the cards would help them develop a credit history. When consumers called to get cards, they were told they would have to pay a $299 upfront fee, Abbott said. Once they got the cards, they could use them only to buy items from a catalog or Web sites the companies ran, Abbott said. When the consumers tried to buy something, they were told to pay 40 percent up front, he said. Consumers have been unable to get refunds, he said. The attorney general's office is seeking to recoup the upfront fees and an injunction to halt the marketing of the credit cards. Abbott said his office also may see penalties of $20,000 per violation.
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